startcompanyinindia.com

26/06/2012

Starting a branch office in India

Eligibility Criteria
• A profit making track record during the immediately preceding 5 financial years in the home country
• The net worth should not be less than USD 100,000 or its equivalent
• The branch can only undertake the activities that are undertaken by the foreign company.

[Net worth - Total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name]

Documents Required
• English version of the Certificate of Incorporation/Registration or Memorandum & Articles of Association attested by Indian Embassy / Notary Public in the Country of Registration.
• Latest Audited Balance Sheet of the applicant entity.

The Branch office established with the Reserve Bank's approval will be allotted a Unique Identification Number (UIN).

Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time.

The branch office should also obtain Permanent Account Number (PAN) from the Income Tax Authorities on setting up the offices in India.

Branch Office in Special Economic Zones

Reserve Bank has given general permission to foreign companies for establishing branch/unit in Special Economic Zones (SEZs) to undertake manufacturing and service activities.

Special Conditions
The Branch Office is allowed to conduct the following activities
• Export/Import of goods
• Rendering professional or consultancy services.
• Carrying out research work, in which the parent company is engaged
• Promoting technical or financial collaborations between Indian companies and parent or overseas group company
• Representing the parent company in India and acting as buying/selling agent in India
• Rendering services in Information Technology and development of software in India.
• Rendering technical support to the products supplied by parent/group companies.
• Foreign Airline/shipping Company

19/06/2012

Choosing the business entity is the first step in starting your venture.

Entrepreneurs in India can choose any of the below vehicles to start their enterprise:-

1. Partnership Firm
2. Limited Liability Partnership (LLP)
3. Private or Public company (an incorporated company)

If a single individual is starting a business, he / she could choose to run the business as a proprietorship.

The below points should help an entrepreneur choose the business entity

1. Liability of the partners/members

In a company limited by shares, even if liabilities of the company far exceeds its assets, a member’s liability is restricted to the amount invested in the shares of the company and is liable to pay only the uncalled money due on the shares held by him when called upon to pay and nothing more.

The same applied for a Limited liability partnership. The partners are required to pay only the amount agreed to contribute to the LLP.
In case of a partnership firm or a sole proprietorship concern, the liability is unlimited.

2. Taxation

An incorporated company has two layers of tax. Tax is paid on the company’s net income, and when dividend is distributed to the shareholders, the company has to pay Dividend Distribution Tax.

On the other hand, profits earned by a LLP and Partnership Firm are taxed only once and the profit shared among the partners is not taxed on the hands of the partners.

3. Separate Legal Entity

An incorporated company and LLP enjoy the status of a separate legal entity. The company/LLP is a separate entity from its members/partners. The company/LLP is capable of owning property, incurring debt, entering into contracts, suing and being sued separately.

On the other hand, the property of a partnership firm/proprietorship concern belongs to the partners of the firm and the sole proprietor.

4. Perpetual Succession

An incorporated company and LLP does not die or cease to exist unless specifically wound-up. Member/Partners may come and go but the entity exists till wound-up. This ensures that the company/LLP survives even in the event of a change in ownership of its shares or profit sharing.

On the other hand, on the death of one of the partner, the partnership is dissolved unless there is provision to the contrary by agreement between the partners. So is the case for proprietorship concern.

18/06/2012

Ten Points to Make Your Start Up Business a Success!

1. Be true to yourself. No matter how much money someone else makes, if you don't enjoy the business, wouldn't be proud to show your relatives what you are doing and how you are doing it, then don't do it. If you run a business you don't like or don't believe in, even if you have temporary success, it will come back to haunt you one way or another.

2. Find a need and fill it. Yes, you've heard that a million times. But it still works. The easiest business to run is one that produces products or services that people already know they need. The reason: you don't have to spend a lot of time and money convincing prospects they need what you sell. You can focus on why you are the best source to satisfy their need. Just be sure the "need" is one people will spend money to satisfy.

3. Choose products or services that you can sell for a lot more than it costs you to make or buy them. If the difference between your cost and selling prices is too low, you will have difficulty growing the business. When profit margins are too low, you won't have enough money to hire employees, pay for rent (when you need to move the business out of the house), advertise more, and do other things needed to expand.

Ads by Google

4. Make realistic estimates of your expenses... then double them. Most new businesses either forget about marketing, fulfillment, overhead costs, income taxes and self-employment or greatly underestimate them.

5. Be true to your customers and prospects. Don't promise what you can't deliver. Don't lie or exaggerate the benefits of what you sell and always deliver a quality product or service. Word-of-mouth marketing has always been one of the primary ways small businesses find customers. The Internet and social networking sites spread the word (good or bad) to even more potential customers.

6. Understand the importance of marketing and learn how to do it effectively. The world won't beat a path to your door just because you build a better mousetrap or write a great ebook about how to grow tomatoes or teach a child to read. To get customers you will have to market your products or services effectively and continually.

7. Treat your vendors, manufacturers and service providers with respect and let them know you appreciate them. They are an important part of your team and your success. If you speak down to them, pester them with questions you could answer yourself, imply that they don't' do a good job, nickel and dime them to death, or are an ongoing pain in the neck, they'll never go out of their way to help you -- and might drop you all together. No business needs picky, annoying, time-consuming customers.

8. Embrace the web. No matter what you sell or to whom, there's a good chance your customers will turn to the web in one way or another to make their purchase. They may turn to online yellow pages to find a florist in Florence, SC; or go to Google, MSN or Yahoo and search for a phrase like "Elder law attorney Farmington Hills MI", or "plumber weekends Astoria NY" If customers can't find you in their queries, they are likely to give their business to one of your competitors.

9. Don't expect miracles. Yes, people do make money in their sleep or while they're away on vacation -- the Internet makes that possible. But only after they've invested a lot of time , effort, and money in building the business and building the team that keeps it going and growing.

10. Remind yourself that one is the loneliest number in business. One product, one service, one main client, and all your records stored on one computer hard drive without regular off-site backups is a recipe for failure. If you only have one product or service you're missing out on the chance to profit by selling more things to people who already know and trust you. If you have only one main client, you 're up the proverbial creek if they decide to change vendors or run into cash flow problems. And if all your records are on your computer and you don't have always up-to-date backups of your important files, a hard drive crash could destroy your business.

03/06/2012

saheb singh manhas has joined iCorp Business Solutions as a partner. Please visit http://startcompanyinindia.com/

Start Company in India - Company Registration, LLP Registration and Trademark Registration. Call Call +91 97426 14666.

19/04/2012

http://startcompanyinindia.blogspot.in/

19/04/2012

http://startcompanyinindia.wordpress.com/

Just another WordPress.com site

19/04/2012

http://startcompany.webs.com/