BUSINESS SETUP IN INDIA
A company’s business start up india expansion strategy must include expanding globally. It is governed by a company’s desire to expand its competitiveness globally and diversify its commercial endeavours.
Nations like India, China, Brazil, and others continue to be the most logical choice for multinational corporations to establish operations in these countries due to features like a sizable consumer base, strong economic growth, and a labour force that is relatively inexpensive.
Of the aforementioned nations, India’s economy continues to expand at a good clip and occupies a prominent position on the world map. Despite the global slowdown, the GDP of the nation has increased on average by 8.5 percent over the past five years. With its enormous human resource base, diverse natural resources, and solid macroeconomic fundamentals, it is one of the most alluring locations for business and investment prospects. In addition to being the second most populous nation in the world, India has a population that is over 50% younger than 25 and over 65% younger than 35. India’s position as a top commercial destination for corporations throughout the world has been further strengthened by the allowance of 100 percent foreign investment in the majority of activities and sectors.
Establishing a business start up india still necessitates several compliances to be met as required by various legislations and Acts of parliament, despite the government’s efforts to simplify the process in order to attract more and more international investment.
Foreign investors frequently wind up hiring many advisors in order to honour the compliances necessary by various laws in order to develop and maintain a business in India. Multiple contact points and inappropriate coordination between consultants result from the hiring of multiple consultants, which slows down the process of establishing a firm.
J J J And Company LLP (JJJ) has developed a special service named “Business Set up Services In India” in order to address the challenges described above that foreign investors experience. For all the compliances and services needed by foreign investors to launch a company in India, we provide as a single point of contact under this service.
To eliminate unneeded headaches, inconveniences, and time wastage and to facilitate the client’s business expanding smoothly, J J J and Company LLP offers a “TOTAL SOLUTION” to its international clients under one roof. We have a team of knowledgeable experts with many years of experience in offering services for business formation.
When it comes to business start up india, we guarantee our clients a smoother flow of their activities. We are a reputable service provider with the goal of helping clients from abroad with services related to business establishment in India.
PRE BUSINESS SETUP PHASE OVERVIEW
We have gone above and beyond in our efforts to give our clients one-stop shopping for business setup in India by specialising in additional tasks that need to be completed for business establishment but are outside the core competencies of a Chartered Accountant firm.
FOLLOWING ARE THE COMPLETE LIST OF SERVICES THAT ARE OFFERED BY J J J AND COMPANY LLP IN POST BUSINESS SET UP PHASE –
COMPLIANCE WITH VARIOUS LAWS
COMPANIES ACT, 2013 COMPLIANCES SERVICES OVERVIEW
The Indian Parliament passed the Companies Act, 2013, which regulates the incorporation of companies in India and keeps an eye on how they are being run. The Companies Act, 2013 just took its position in order to update the law and make it more applicable to Indian businesses, regulators, and stakeholders. The Ministry of Corporate Affairs, along with the Offices of the Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc., administers the Companies Act of 2013. The incorporation of new corporations and the management of active firms are handled by the Registrar of Companies (ROC).
The following services are provided by our dedicated section for Companies Act Compliances at J J J and Company LLP.
INCORPORATION OF COMPANY
Private Limited Corporation A private limited company is one that has a minimum paid up capital of INR 1,00,000 or a greater paid up capital as may be required and limits the transfer of its shares, if any, according to its bylaws.
Public Limited Corporation
A company is considered a public limited company if it has a minimum paid up capital of INR 5,00,000 or a greater paid up capital as may be required.
What separates a private limited company from a public limited company is-
|Private limited company||Public limited company|
|A company to be Incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000.||A Public Company must have a minimum paid-up capital of Rs. 5,00,000.|
|Minimum number of members required to form a private company is 2.||Public Company requires atleast 7 members|
|Maximum number of members in a Private Company is restricted to 50.||There is no restriction of maximum number of members in a Public Company.|
|There is complete restriction on the transferability of the shares of a Private Company through its Articles of Association.||There is no restriction on the transferability of the shares of a Public company|
|A Private Company may have 2 directors.||A Public Company must have atleast 3 directors.|
|A Private Company can commence its business immediately after its incorporation.||A public company cannot start its business until a Certificate to commencement of business is issued to it.|
|A Private Company cannot issue Share Warrants against its fully paid shares||A public Company can issue Share Warrants against its fully paid up shares.|
The following services relating to company incorporation in India are provided by J J J and Company LLP.
REPRESENTATION SERVICES BEFORE COMPANY REGISTRAR
Documents are examined by ROC before issuing a certificate of incorporation for a firm once they have been submitted to ROC and costs have been paid. In the event that a question is posed by the authorities, we represent our client before the authority and obtain the questions’ resolutions.
Income Tax Act, 1961 Compliances Services OVERVIEW
The Central Government of India currently has the authority and capacity to collect taxes in India. Through the Central Board of Direct Taxes (CBDT), a division of the Ministry of Finance’s Department of Revenue, the central government exercises this authority.
Even though the Income Tax Act of 1961 only requires a small number of compliances, such compliances nonetheless need to be honoured. Through a specialised section, J J J and Company LLP offers the following services in relation to the Income Tax Act of 1961.
Valuation of shares as per prescribed pricing guidelines.
The price of the shares subscribed for by a foreign investor in an Indian company must follow SEBI norms in cases when the company is publicly traded, as required by FEMA.
- In the case of unlisted enterprises, not less than the fair value of the shares as determined by a SEBI-registered Merchant Banker or a Chartered Accountant using the Discounted Free Cash Flow Method (DCF).
Being a Chartered Accountancy firm, J J J And Company LLP is qualified to perform such share valuations.
Share issue related services.
Liaisoning with Authorized Dealer.
Every communication between an individual or a company and the RBI must go through authorised agents that the Reserve Bank of India has established. We offer representative services to our clients, whereby we represent them before authorised agents for any communication with RBI. This eliminates the issue of our clients having to coordinate with these authorised agents.
External Commercial Borrowing Consultancy.
A different set of guidelines have also been established by the Reserve Bank of India through the Foreign Exchange Management Act for foreign investors who wish to invest in India through debt rather than equity. While injecting loan finances to our client’s firm or organisation, we make sure that he abides by all guidelines and regulations.
OTHER VARIOUS DOCUMENTS PREPARATION AND ATTESTATION SERVICES.
The services that are not central to the work of a Chartered Accountant or Business Consultant are considered special services for J J J And Company LLP. But when we first launched the “business start up india” service, our major goal was to give foreign investors looking to start a business in India a one-stop shop. With this concentration in mind, we went above and above to acquire specialisation in services that are related to our core offerings. These consist of
Selection of Place of Business
Every business owner needs to determine how location will affect the company’s success and then choose a site accordingly. The most important factor in choosing office space is occasionally not where it is but what it is. The facilities in the facility must be suitable for your business or adaptable to it. Our highly skilled and knowledgeable personnel offer our clients advice on the optimal location for their business start up india.
Additionally, the government has established a number of special economic zones for a variety of companies and sectors. These Zones provide particular Industries with special amenities and concessions. In this service, we help our clients find such distinct areas or locations that could provide them with unique benefits.
An examination and analysis of a business start up india opportunity are done with due care. The phrase emphasises that everyone has a duty to keep an eye on how the business is operating. It examines the enterprise’s past, present, as well as likely future. Prior to making any investments, J J J and Company LLP provides comprehensive due diligence support to businesses. Professionalism, originality, and an all-encompassing vision are the hallmarks of our strategy. We strive for the highest level of transparency and give our customers a quick but comprehensive service.
OBTAINING INDUSTRY SPECIFIC LICENCES
Certain businesses, like the one that deals with alcohol, chemicals, or food, need licences that are exclusive to those industries. Foreign investors often find it difficult to learn about and secure these licences since they are unfamiliar with the Indian market. To prevent our clients from being exposed to connected hazards, we help our clients get industry-specific licences.
POST BUSINESS SETUP PHASE OVERVIEW
In order to facilitate prompt business establishment, J J J and Company LLP offers its clients effective and efficient assistance in all activities and services during the post-business setup phase. We place a major emphasis on offering clients worldwide comprehensive company setup services.
FOLLOWING ARE THE COMPLETE LIST OF SERVICES THAT ARE OFFERED BY J J J AND COMPANY LLP IN POST BUSINESS SET UP PHASE
OBEDIENCE TO CERTAIN LAWS
Businesses Act Regulation Services
Exchange Rate Management Act (FEMA) services for adherence
Providing Direct Tax Services
Services for Indirect Taxation
IPR Act Employees Similar Laws
determining the Act’s eligibility for application
Cooperation with C&F Agents
Review of Operations and Industry Comparisons
System Implementation and SOPs
Services for Special Audits
BOOK KEEPING SERVICES
We assist you in keeping frequent, precise financial records that enable you to track the success or failure of your company. Monitoring your business operations on a regular basis will help you run more smoothly, keep your cash flow under control, and boost your profitability.
PREPARATION OF ANNUAL REPORT
Your finance department’s workload can be decreased by our Financial Statements Preparation (FSP) team. For both public and private businesses, funds, and other organisations required to report to its members, we prepare high-quality financial statements.
STATUTORY AUDITING SERVICES
FOREIGN EXCHANGE MANAGEMENT ACT (FEMA) COMPLIANCE SERVICES
Annual Reporting under FEMA – The company is required to create its Annual report of International Transactions, which is subject to FEMA regulations, at the conclusion of the Accounting Year. For both public and private businesses, funds, and other organisations required to file reports under the FEMA, we prepare high-quality financial accounts.
CONSULTATION WITH DIFFERENT FEMA REGULATIONS
Investments made by foreign companies, foreign residents in India (FDI), non-resident Indians (NRI), and people of Indian ancestry (PIO), as well as external commercial borrowings (ECB) and other types of investments.
ADVISORY SERVICES ON IMPORT AND EXPORT
We offer legal advice on import and export rules as well as consulting, which enables you to apply best practises in your company.
Consultation regarding the accumulation of offences
Compounding offences is a quick way to avoid going to court.
Compoundable offences include the following:
offences that only carry a fine.
offences that carry a fine or a jail sentence.
offences that can result in fines, jail time, or both.
Regarding the compounding of offences, we offer advice and consulting services.
DIRECT TAXATION SERVICES OVERVIEW
The following direct taxation services are provided by J J J and Company LLP in India.
REGISTRATION, COMPUTATION, PREPARATION AND FILING OF RETURN OF INCOME
Hindu Undivided Families (HUFs), individuals, businesses, associations of people, bodies of people, municipal governments, and any other artificially created judicial entity are all subject to income tax imposed by the government of India on their taxable income. According to the rules of the Income Tax Act of 1961, each individual and corporate entity must determine their tax liability and prepare and file a monthly income return.
OBTAINING LOWER /NIL TDS CERTIFICATES
Every tax-deducting individual is required to provide a TDS certificate. TDS is one of the ways taxes are collected; it involves a person deducting a specified percentage of money when making or crediting a certain kind of payment to another person, and then remitting the money to the government. The Indian government has made the option of a low or nil TDS certificate available to lessen the burdens placed on tax payers.
FILING OF QUARTERLY RETURNS
According to the rules of the Income Tax Act of 1961, the person in charge of deducting TDS amounts is required to deposit such amounts with the Income Tax Department on a quarterly basis. The Indian government has made the option of TDS E-filing (online filing) available in order to ease the burden of paper work.
DOCUMENTATION AND COMPLIANCE WITH TRANSFER PRICING PROVISIONS
Indian Income Tax Act, 1961, contains the provisions governing the regulation of transfer pricing in India. The cost or expense allocated to, apportioned to, or, as the case may be, contributed by, any such enterprise in relation to such service or facility shall be determined having regard to the Transfer Pricing Regulations contained in the Act where two or more associated enterprises enter into a mutual agreement or arrangement for any service or facility provided or to be provided to any one or more of such enterprises. Every individual who has engaged in an overseas transaction is obligated to keep the prescribed records and information in respect thereof, per T.P rules.
EXPATRIATE TAX PLANNING
Instead of illegally dodging an existing tax obligation, expatriates planning activities typically aim to prevent legally incurring tax consequences. It is a proactive action that includes strategically arranging business start up india to reduce tax bills.
TAX STRUCTURING OF THE COMPANY AS A WHOLE
We offer tax structuring for business start up india , which entails gathering the various data and information needed for tax purposes and offering tax audit assistance services, both of which facilitate the timely submission of tax audit returns.
Everyone, including corporations, must communicate with the income tax and wealth tax authorities in order to conduct business operations successfully and efficiently. We represent our clients before the Income Tax authorities to bridge the communication gap between our client and the Income Tax/Wealth Tax authorities.
INDIRECT TAXATION SERVICES OVERVIEW
MAINTENANCE OF STATUTORY RECORDS REQUIRED UNDER ALL INDIRECT TAX LAWS
Every assessee conducting business start up india is required to keep track of receipts for all purchases, manufactures, storage, sales, or deliveries of goods (including inputs), capital goods, and receipts for the procurement or payment of input services, stock accounts, etc. These records must be kept in accordance with all applicable indirect tax laws, and they must also be submitted on a regular basis.
SELECTION OF DIFFERENT BONDS, UNDERTAKINGS, AND FORMS UNDER DIFFERENT LAWS
An Assessee must sign a bond, an undertaking, etc. in order to acquire goods free of duty, get confiscated items temporarily released, get goods temporarily assessed for duty-free export, etc.
JJJ assists our clients in effectively and efficiently obtaining and carrying out a variety of bonds, undertakings, etc. while minimising inconveniences.
DETERMINATION AND DEPOSITION OF CUSTOMS DUTY PRIOR TO CLEARANCE OF GOODS BY CUSTOMS AUTHORITY
A sort of indirect tax known as customs duty is imposed on both imported and exported products in India. Imports into or exports from India are taxable events.
Basic duty, additional customs charge, anti-dumping duty, education cess, etc. are the typical types of import duties.
AUDITING AS PER INDIRECT TAXES RULES AND REGULATIONS
For the purpose of conducting an indirect tax audit, certain norms and regulations have been established. While VAT audits are overseen by several state legislation, GST audits are conducted department by department. While conducting the indirect tax audit, a number of statutory papers, appropriate return filing, and proper Cen vat credit matters must be taken into consideration.
At J J J And Company LLP, we have a committed group of professionals who offer auditing services in accordance with IDT laws and regulations. Our team provides you with the insight and assistance you need to manage indirect taxes more skillfully and successfully.
Communication with the indirect tax authorities is required of all individuals and corporations.
We at JJJ offer representational services to our client, where we represent our client before the IDT Authorities, in order to avoid the issue of coordination with IDT Authorities.
TOTAL TAX STRUCTURING OF THE COMPANY
We offer tax structuring for business start up india, which entails gathering the various data and information needed for tax purposes and offering tax audit assistance services, both of which facilitate the timely submission of tax audit returns.
DEVELOPING STANDARD OPERATING PROCEDURES (SOPS) ENSURING COMPLIANCES WITH ALL INDIRECT TAX LAWS
Evaluation of benefits allowed by the Foreign Trade Policy as well as help acquiring licences of various types, such as EPCG, DFIA, and AAL. DFIAs are issued to permit the duty-free import of inputs that are utilised in the production of export products (making normal allowance for waste), as well as fuel, energy, catalyst, etc. that are consumed or used in the process of obtaining the export products. With EPCG, exporters can import machinery and other capital goods for reduced or no customs duties at all for the purpose of producing items for export.
At J J J And Company LLP, we help our clients secure licences of various types (EPCG, DFIA, etc.) and support them as they assess the advantages allowed by foreign trade policy.
To carry out the Business Operations efficiently and effectively, every Individual and Corporates has to communicate with the Income Tax and Wealth Tax Authorities. To fill the communication gap
between our client and Income Tax /Wealth Tax authorities, we represent our clients before the Income Tax /Wealth Tax authorities.
IPR ACT OVERVIEW
J J J & Company, LLP The following services in relation to IPR are offered to clients after the business setup phase:
IPR registration under several laws, such as the Copyright Act and the Patent Act. IPR includes things like trademarks, copies rights, patents, geographical indications, and designs. The following conditions must be met in order to register an IPR. JJJ assists clients with IPR registration needs.
maintaining the required registers, records, and periodic filing of necessary documents. It is beneficial to keep sufficient documentation of your intellectual property rights in order to enforce the company’s rights in compliance with local legislation. Receipts, records, invoices, and other paperwork pertaining to the creation and first use of intellectual property, as well as the annual sales volume of products containing IPR, must be kept up to date.
JJJ assists our clients in keeping the necessary registrations, records, and filing of documents.