Small Biz Consulting Services

02/09/2017

LAST DATE OF TAX AUDIT EXTENDED:
It is a pleasure to inform you that the CBDT has vide Order u/s 119 of the Act dated 31.08.2017 has extended the due date for filing report of audit as well as tax-returns from 30.09.2017 to 31.10.2017 under the Income-tax Act, 1961 .

22/04/2014

20/04/2014

Structure your business to last long.... but care about Costs.

19/04/2014

Private limited Companies
These are closely held businesses usually by family, friends and relatives. Private companies may issue stock and have shareholders. However, their shares do not trade on public exchanges and are not issued through an initial public offering. Shareholders may not be able to sell their shares without the agreement of the other shareholders.

Advantages
1. Limited Liability: It means that if the company experience financial distress because of normal business activity, the personal assets of shareholders will not be at risk of being seized by creditors.
2. Continuity of existence: business not affected by the status of the owner.
3. Minimum number of shareholders need to start the business are only Two.
4. More capital can be raised as the maximum number of shareholders allowed is 200.
5. Scope of expansion is higher because easy to raise capital from financial institutions and the advantage of limited liability.

18/04/2014

NOW, YOU CAN SET UP A ONE PERSON COMPANY
TILL RECENTLY, IF YOU WANTED TO SET UP A PRIVATE COMPANY, YOU NEEDED AT LEAST ONE OTHER PERSON BECAUSE THE LAW MANDATED A MINIMUM OF TWO SHAREHOLDERS. SO, FOR THE PERSON WANTING TO VENTURE ALONE, THE ONLY OPTION WAS PROPRIETORSHIP, AN ONEROUS TASK SINCE IT IS NOT LEGALLY RECOGNIZED AS A SEPARATE ENTITY. NOW, COMPANIES ACT 2013, HAS ALSO OPENED THE DOORS FOR THE ENTREPRENEUR LOOKING TO SET UP A COMPANY ALL BY HIMSELF. THIS HAS BEEN MADE POSSIBLE BY BRINGING IN THE CONCEPT OF ONE PERSON COMPANY (OPC).

16/04/2014

Two Private Limited Company Registered on 02.04.2014

" AGANYA JESHTADI ENTERPRISES PRIVATE LIMITED "
" LIMNTRON CONSULTING PRIVATE LIMITED"

16/04/2014

One LLP Registered on 15.04.2014

" SYSTEMATIC PLANNERS AND ADVISORS LLP "

16/04/2014

Limited Liability Partnership in India (LLP)

Limited Liability Partnership entities have been a recent phenomenon in India and were introduced in India by way of the Limited Liability Partnership Act, 2008. A Limited Liability Partnership, popularly known as LLP combines the advantages of both the limited liability of a Company and flexibility of a Partnership into a single form of organization with low compliance costs. The LLP structure is available in many other countries like United Kingdom, USA, various Gulf countries, Australia and Singapore.

ADVANTAGES
The structure of LLPs in India have many advantages over proprietorships, partnerships and limited companies, as elaborated below.

1. Limited Liability: First and foremost benefit of trading/doing business via LLP is the limited liability conferred upon the partners. As a sole trader or partnership business, personal assets of the proprietor or partners can be at risk in the event of a failure of the business, but this is not the case for an LLP. Unfortunate events like business failures are not always under an entrepreneur's control; hence it is pivotal to secure the personal assets of the businessman in the event of crises

Unlike proprietorship and partnership, if an LLP becomes insolvent and is wound up, only the assets of the LLP are used to clear its debts. The partners of LLP have no personal liabilities and are not made bankrupt and are free to operate as credible businessmen.

2. No Audit Requirements: Audit is not required unless capital exceeding Rs. 25 lakh or turnover exceeding Rs. 40 lakh.

3. Legal Entity/Status or Recognition: An LLP is a legal entity, a juristic person established under the Act. It has its existence separate from its partners. Corporate entity status enables LLP to be taken more seriously than a proprietorship/partnership status does.

4. Taxation: LLPs are taxed like general partnership firms. LLPs pay an effective tax of 30.9%. They are exempted from 10% surcharge. LLPs tax payment is lower than that of companies, which pay a 33.99% tax on profits.

The tax will be imposed only on 10% or 40% of the LLP’s income, since the firm will be allowed to pay the balance 90% or 60% to the partners as remuneration. This means, the partners will have to pay tax on the amount paid to them. So, there will be no double taxation of income.

Unlike Private or Public Companies, no requirement for payment of Dividend distribution/Corporation Tax on distribution of income/profits among partners and there is no requirement as to Minimum Alternate Tax.

5. Other Important Advantages:

Low cost of Formation and compliances.
Less statutory compliances as compared to Private limited Companies
Less requirements as to maintenance of statutory records
Renowned and accepted form of business worldwide
No requirement of any minimum capital contribution
No restrictions as to maximum number of partners
Body corporate can be a partner of an LLP
Less Government Intervention
Easy to dissolve or wind-up

MINIMUM REQUIREMENT & STEPS

Minimum 2 Partners
Minimum 2 Designated Partners
Atleast 1 of the designated partners shall be an Indian Resident
If a body corporate is a partner, it has to nominate a natural person as its nominee
The Partners and Designated Partners can be same person
There is no concept of share capital, but there has to be some sort of contribution from each partner
DPIN (Designated Partner Identification Number) for all the Partners
DSC (Digital Signature Certificate) for all of the Designated Partners
LLP Agreement
Registered Office

15/04/2014

Company Registration

In case of Incorporated entities company form of business organisation is most popular form of voluntary association of two or more persons formed for the purpose of doing business having a distinct name and limited liability. The company registration in India is regulated by the Companies Act, 2013, and administered by the Ministry of Corporate Affairs (MCA - www.mca.gov.in) through offices of the Registrar of Companies (ROC).

Advantages of Company Registration

1. Limited Liability – The Liability in case of company is limited to the amount of share capital subscribed by shareholders and amount remaining unpaid on the subscribed shares only. Unlike proprietorship and partnership, if a Company becomes insolvent and is wound up, only the assets of the company are used to clear its debts.

2 . Legal Entity - Company is a legal entity, a juristic person established under the Companies Act 2013. It has its existence separate from its directors and members.


3. Perpetual Succession – The existence is of the company is not affected by the death and insolvency of its directors or shareholders. The directors may come and go but the company remains forever.

4. Easy Transferability – The shares of company are freely transferable and thus facilitate easy change in management and ownership.

5. Raising Money from Public - Public Limited Companies can raise large amount of capital from the general public by issue of shares and public deposits.

Private Limited Companies can raise capital only by private placement of shares and deposits.

6.Brand Image : Better brand Image than Partnership or Sole proprietorship.

7. Better Credit worthiness :Company/LLP form of Business organization enjoys better credit worthiness in comparison to other forms of business organization.

8. Transparency : Company form of Business organization are more transparent in comparison to other forms of business organization.

MCA regulates corporate affairs in India through the companies Act, 1956, 2013 and other allied Acts, Bills and Rules. MCA also protects investors and offers many important services to stakeholders. This site is your gateway to all services, guidance, and other corporate affairs related information.

13/04/2014

Please note that CIN to be mentioned in letter heads, invoices etc.:Section 12(3)(c) of Companies Act 2013, which will be effective from 01-04-2014,
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provides that every company shall get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications.

12/04/2014

ONE PERSON COMPANY
A REVOLUTIONARY NEW CONCEPT OF OWNERSHIP

The New Companies Act, 2013 recently notified by the Ministry of Corporate Affairs has introduced a revolutionary new concept of One Person Company (OPC) in India. Now, there is no need to have minimum two shareholders and only single shareholder can form a Private Limited Company called OPC.

The Highlights of this OPC is as under –

- OPC shall be a Private Limited Company.

- OPC can have one or two Directors, who can be different from the promoter. The promoter can also act as a sole Director of the Company.

- OPC has to indicate the name of the person in Memorandum who shall act in the event of death or incapacity of one person.

- Only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate OPC. The same also applies to the nominee for the sole member of OPC.

Restrictions –
- Such Company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates.
- Such company cannot be converted voluntarily into any kind of company unless two years have expired from the date of incorporation, except threshold limit (paid up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees