Using Proper Tax Planning Strategy, Our Tax Professional Makes Your Businesses Eligible for All the Tax Breaks That Are Available to Them.
Private Limited Company
A private limited company is a limited liability entity incorporated under Companies Act, 2013. It has a minimum of two directors (with a maximum of 15). A natural person can be a director and as well as shareholder, where a corporate legal entity can only be a shareholder. In addition to that, foreign nationals, foreign corporate entities or NRIs are also allowed to be the Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
Some of the unique features of a private limited company like the limited liability protection to shareholders, the ability to raise the equity funds, separate legal entity status and the perpetual existence make it one of the most recommended type of business entity many.
Limited Liability Partnership (LLP)
The advantage of opting for a Limited Liability Partnership over the traditional Partnership Firm is that an LLP gives each partner limited liability. This means that one partner is not responsible for the conduct and negligence of another partner. This is similar to what shareholders enjoy. Another feature is that in an LLP, all partners have the right to manage the business directly.
Registering an LLP can very easily be done in India. The compliance and procedures are simple and take a short time to complete. This is the prime reason that many are opting for this kind of business, especially small and micro business.
One Person Company (OPC)
One-person company (OPC) is a new form of business introduced by Companies Act, 2013. It is hybrid form of business where a sole proprietorship concern can get a corporate outlook.
An OPC is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder. Thus, it does away with the hassles of finding the right kind of co-partner/s for starting a business as registered entity. The best part is, legal and financial liability is limited to the Company and not the member.
Partnership is a common form of business. Two or more people come together to carry on a business and share the profits and losses. Liability of the partners in a partnership firm is joint and many.
A partnership firm is not a separate legal entity distinct from its members. It is merely a collective name given to the individuals composing it. Hence, unlike a company which has a separate legal entity distinct from its members, a firm cannot possess property or employ servants; neither can it be a debtor nor a creditor. It cannot sue or be sued by others.
Proprietorship firms are one of the most commonly seen business types in our country. A sole proprietorship is a business that is owned and managed by a single person. You could have one up and running within 15 days, which makes it very popular among the unorganised sector, particularly small traders and merchants.
Proprietorships are recognised by other registrations, such as a GST registration. As you would imagine with a business that’s so easy to set up, its shortcomings are severe – the liability of the proprietor is unlimited and it does not have a continuous existence.
GST is a consumption-based tax levied on sale, manufacture and consumption on goods & services at a national level. This tax will be substitute for all indirect tax levied by state and central government. Exports and direct tax like income tax, corporate tax and capital gain tax will not be affected by GST. GST would apply to all goods other than crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas. It would apply to all services barring a few to be specified. With the increase of international trade in services, GST has become a global standard. The proposed tax system will take the form of “dual GST” which is concurrently levied by central and state government.
Trademark is any unique expression related to a product or service that distinguishes it from others. This expression could be a word, slogan, photograph, logo, graphic, colour combination, sound or even smell; however, most businesses are only looking for a brand name registration or logo registration. Owners of trademarks have exclusive rights to their use under the categories they are registered in (there are a total of 45 categories, called classes).
Trademark registration enables owners to easily establish their right to the trademark in court and earn royalties. It also deters piracy and prevents similar company names from being registered by other businesses. You can conduct a trademark search, to check if your brand name clashes with existing trademarks. In India, you could get a ™ within three days, but it takes up to two years for it to be registered so that you can use the ® symbol.
Trademarks in India are registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India. Trademarks are registered under the Trademark Act, 1999 and provide the trademark owner with a right to sue for damages when infringements of trademarks occur. Once a trademark is registered, R symbol can be used and the registration will be valid for 10 years. Registered trademarks nearing expiry can be easily renewed by filing a trademark renewal application for a period of another 10 years.
IMPORT & EXPORT CODE
Import Export (IE) Code is a 10 digit code issued by DGFT – Director General of Foreign Trade, Ministry of Commerce, Government of India to Indian Companies. It is a registration required for persons importing or exporting goods and services from India.
It is mandatory for all importers to mention their IE Code while clearing customs when their goods arrive in India. Similarly, all exporters must mention their IE Code while exporting their goods from India. Additionally, the Reserve Bank of India has made it compulsory for all the traders to mention IE code while making a payment transfer to a foreign bank account. Therefore, the IE Code is essentially required for anyone involved in import or export in India.
IE Code once issued can be used by the entity throughout its existence and do not require any renewal or filing. Therefore, it is recommended for most organizations to obtain IE Code, irrespective of if they need it at the moment.
Definitions of Micro, Small & Medium Enterprises In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
Manufacturing Enterprises-He enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
Service Enterprises: - The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment