info@firststage.in

+91-7240000190

Author name: fsadmin

Blogs, Business registration

Unveiling the Hassle-Free Path to Launching Your One-Person Company: A Guide to Seamless Business Registration

/

Unveiling the Hassle-Free Path to Launching Your One-Person Company: A Guide to Seamless Business Registration Are you ready to embark on the exciting journey of entrepreneurship and launch your very own one-person company? Congratulations on taking this bold step towards realizing your business dreams! Starting a solo venture can be incredibly rewarding, but the initial process of business registration can seem daunting. Fear not, for we’re here to guide you through a hassle-free path, ensuring a smooth and seamless registration process. The One-Person Advantage: Why Solo Entrepreneurship? Before we delve into the intricacies of business registration, let’s reflect on the advantages of starting a one-person company. Solo entrepreneurship offers unparalleled flexibility, allowing you to make swift decisions, tailor your business to your unique vision, and enjoy complete ownership of your venture. As a solo entrepreneur, you are the captain of your ship, steering it towards success on your terms. Navigating the Registration Maze: A Step-by-Step Guide 1. Define Your Business Structure: Begin by choosing the right legal structure for your one-person company. Options often include sole proprietorship, limited liability company (LLC), or a professional corporation (PC). Assess the advantages and limitations of each structure to determine the best fit for your business. 2. Choose a Business Name: Selecting a business name is a critical step. Ensure it is unique, reflective of your brand, and complies with any naming regulations in your jurisdiction. Perform a thorough online search and check domain availability if you plan to have an online presence. 3. Register Your Business: Complete the necessary paperwork to register your one-person company. This typically involves filing the appropriate forms with your local business registration office. Many jurisdictions offer online registration options, streamlining the process for solo entrepreneurs. 4. Obtain Necessary Permits and Licenses: Depending on your industry and location, you may need specific permits or licenses to operate legally. Research local regulations and obtain the required approvals. This step is crucial to avoid potential legal issues down the road. 5. Set Up Financial Systems: Establish a separate business bank account to keep your personal and business finances distinct. Consider investing in accounting software or hiring a professional to manage your financial records. Organized finances are key to the long-term success of your one-person company. 6. Understand Tax Obligations: Familiarize yourself with tax obligations for your business structure. Consult with a tax professional to ensure compliance and explore potential deductions that can benefit your solo venture. 7. Build Your Online Presence: In the digital age, having a robust online presence is essential. Secure a domain name, create a professional website, and leverage social media to connect with your target audience. Establishing a strong online brand will set your one-person company apart. Conclusion: Setting Sail with Confidence Launching your one-person company is a journey filled with excitement and potential. By following this guide to seamless business registration, you’re not just starting a business; you’re setting sail on an adventure where you are the captain of your destiny. Embrace the journey, stay adaptable, and watch as your solo venture transforms into a thriving enterprise. Remember, success often lies in the details. By mastering the fundamentals of business registration, you’re laying a solid foundation for the growth and prosperity of your one-person company. So, ready your sails, aspiring entrepreneur – the open sea of possibilities awaits!

Blogs, Business registration

Digital Signature Certificates:  Your Key to Online Privacy and Security

/

Digital Signature Certificates:  Your Key to Online Privacy and Security In an era dominated by digital interactions, ensuring the security and integrity of online communications is paramount. As individuals and businesses increasingly rely on electronic transactions and document exchanges, the need for robust authentication methods becomes crucial. Enter Digital Signature Certificates (DSCs), the cryptographic keys that not only validate the identity of parties involved but also safeguard the confidentiality and integrity of digital information. In this comprehensive guide, we explore the significance of Digital Signature Certificates, their applications, and how they serve as the linchpin of online privacy and security. Understanding Digital Signature Certificates 1. What is a Digital Signature Certificate? A Digital Signature Certificate is an electronic form of identification that verifies the authenticity of the sender or signer of a digital document or message. Much like a handwritten signature, a digital signature uniquely associates the signer with the content, providing a secure means of validating the origin and integrity of digital data. 2. How does it Work? DSCs operate on the principles of asymmetric cryptography. When a user applies a digital signature to a document, the DSC algorithm uses a private key to generate a unique cryptographic code. The recipient can then verify the signature using the corresponding public key. This process ensures that the document remains unaltered and authentic. The Role of Digital Signature Certificates in Security 1. Authentication: Digital Signature Certificates play a pivotal role in authenticating the identity of users engaging in online transactions. By utilizing private and public key pairs, DSCs ensure that the sender is who they claim to be, minimizing the risk of impersonation or fraud. 2. Data Integrity: One of the primary functions of Digital Signature Certificates is to ensure the integrity of digital documents. Any alteration to the signed content, even the slightest change, will render the signature invalid. This guarantees that the information has not been tampered with during transmission. 3. Non-Repudiation: Non-repudiation is a critical aspect of digital signatures. Once a document is signed using a DSC, the sender cannot deny their involvement or claim that they did not authorize the transaction. This attribute holds legal weight, making digital signatures admissible in legal proceedings. 4. Encryption: DSCs often incorporate encryption capabilities to protect the confidentiality of digital communications. By encrypting the content with the recipient’s public key, only the intended party with the corresponding private key can decrypt and access the information. Applications of Digital Signature Certificates 1. E-Governance: Governments worldwide are leveraging DSCs to enhance the efficiency and security of digital services. From filing taxes to applying for permits, citizens can authenticate their identity securely using digital signatures. 2. E-commerce: In the realm of online commerce, Digital Signature Certificates ensure the authenticity of purchase orders, contracts, and financial transactions. This not only safeguards businesses but also fosters trust among consumers. 3. Banking and Finance: Financial institutions rely on DSCs to secure online banking transactions, loan agreements, and electronic fund transfers. The robust authentication provided by digital signatures enhances the overall security of financial processes. 4. Legal Documents: Legal professionals and organizations use Digital Signature Certificates to sign and validate contracts, agreements, and other legal documents. The non-repudiation aspect is particularly valuable in legal contexts. 5. Healthcare: In the healthcare sector, DSCs ensure the security of electronic health records, prescriptions, and other sensitive medical information. This is crucial for maintaining patient confidentiality and complying with privacy regulations. Choosing and Implementing Digital Signature Certificates 1. Certificate Authorities: Certificate Authorities (CAs) are entities trusted to issue Digital Signature Certificates. It’s imperative to choose a reputable CA that adheres to industry standards and practices, ensuring the credibility and reliability of the issued certificates. 2. Certificate Types: DSCs come in various types, including Class 1, Class 2, and Class 3, each offering different levels of security and functionality. The choice depends on the intended application and the level of assurance required. 3. Integration with Applications: To fully harness the benefits of Digital Signature Certificates, it’s essential to integrate them seamlessly into the applications and systems used. This may involve working with software developers and IT professionals to ensure compatibility and optimal functionality. Challenges and Future Trends 1. Key Management: Effectively managing the private keys associated with Digital Signature Certificates is crucial. Loss or compromise of the private key can jeopardize the security of the entire system. 2. Blockchain Integration: Some experts advocate for the integration of digital signatures with blockchain technology to enhance security and transparency further. This innovation may shape the future of digital signatures in various sectors. Conclusion: Empowering a Secure Digital Future As we navigate the ever-evolving landscape of digital interactions, Digital Signature Certificates emerge as the guardians of online privacy and security. Their multifaceted role in authenticating identities, ensuring data integrity, and facilitating secure transactions makes them indispensable in numerous sectors. By understanding the significance of Digital Signature Certificates and embracing their implementation, individuals and businesses can navigate the digital realm with confidence, knowing that their online interactions are fortified by the robust security measures provided by these cryptographic keys. In essence, Digital Signature Certificates are not just keys; they are the gatekeepers to a secure and empowered digital future.

Blogs, Business registration

The Hidden Benefits of a Business Registration Service You Didn’t Know About

/

The Hidden Benefits of a Business Registration Service You Didn’t Know About Introduction Launching a new business is an exciting venture, but amidst the thrill, entrepreneurs often overlook the essential step of business registration. While it might seem like a bureaucratic formality, enlisting the services of a professional business registration service can offer a plethora of hidden benefits that go beyond mere legal compliance. Legal Shield for Your Business  Understanding the intricacies of business laws and compliance can be daunting. A business registration service acts as a legal shield, ensuring that your business adheres to all regulations, protecting it from potential legal issues. Credibility Boost  Customers and partners often view registered businesses as more trustworthy and credible. A registered business conveys a sense of professionalism, which can significantly impact your brand’s image and foster trust among stakeholders. Access to Business Loans and Funding  Many financial institutions and investors prefer working with registered businesses. Business registration opens up avenues for securing loans, grants, and investments, providing your venture with the financial resources needed for growth and expansion. Tax Advantages  Business registration often comes with tax benefits that can help optimize your financial structure. Understanding and utilizing these advantages can lead to significant savings, contributing to the overall profitability of your business. Brand Protection  Registering your business name and logo safeguards your brand from infringement. A business registration service can guide you through the process of trademarking, preventing competitors from using similar branding elements and protecting your intellectual property. Enhanced Marketability  A registered business enjoys enhanced marketability. It becomes eligible for government contracts and collaborations, expanding its reach and potential client base. This increased exposure can significantly boost your business’s growth trajectory. Streamlined Administrative Processes  Navigating the administrative requirements of starting and running a business can be overwhelming. A business registration service streamlines these processes, handling paperwork, deadlines, and other administrative tasks, allowing you to focus on core business activities. Conclusion  While business registration may initially seem like a routine formality, the hidden benefits it brings to the table are invaluable. Partnering with a business registration service not only ensures legal compliance but also unlocks a range of advantages that can propel your business towards success. Don’t underestimate the power of proper registration; it might be the key to unlocking your business’s full potential.

Blogs, Business registration

The Ultimate Guide To Business Registration Services: Everything You Need To Know

/

The Ultimate Guide To Business Registration Services: Everything You Need To Know Starting a business is like planting a seed that you hope will grow into a strong tree. Just as seeds need the right soil to sprout, businesses need proper Business Registration Services to start right and thrive. Business registration lets you tell everyone your company is real and protects its name. In India, becoming an official business happens online which makes it easy and fast. You can choose from different kinds of registrations like Public Limited Company or Private Limited Company. Picking the best one for you matters because it affects how much tax you pay and what risks you takeBefore jumpstarting this journey, there’s a checklist: pick your business type, find a good name, get all papers ready, and understand each step to register. One key step is getting an 8-digit code called the Director Identification Number (DIN) if you want to be in charge at your company. Also, making sure no one else has your company’s name is super important – think about how special names are! For all these steps, documents like ID proofs are needed too. Plus, going online for help with registering means saving time and learning from pros who have done this before many times. Having your own private limited company has upsides like being safe if things go wrong since only the money in the company can be lost but also downsides; it’s not always simple to give shares away or sell them. This guide will show everything about setting up shop – what documents you’ll need, how to get through each part without trouble, and why doing this well leads to great chances later on. Ready? Let’s talk business! Key Takeaways What is Business Registration? Business registration is the process of officially establishing a business as a legal entity. It involves obtaining a unique business identifier and fulfilling specific legal requirements based on the chosen business structure. Types of Business Registration Registering your business is like giving it a formal outfit to wear. It says to the world, “We’re open and ready for work!” Let’s explore the kinds of business registrations you can choose from: Why Register Your Business? Registering your business provides legitimacy, protection, and access to resources and opportunities. To learn more about the benefits of business registration, continue reading our ultimate guide. Legitimacy Having your business officially registered is like giving it a seal of approval. It means you’re serious and trustworthy. Customers, banks, and other companies take you more seriously when they see that registration number. It’s proof that your business plays by the rules and has all the right papers. This mark of legitimacy helps you in many ways. You can get loans easier because banks trust registered businesses more. Your customers feel safer buying from you because they know your company is real and follows laws. Also, if someone tries to steal your business name or ideas, being registered gives you the power to fight back legally Protection Registering your business keeps it safe in many ways. For example, it locks down your brand name. This move stops others from using the same name to sell similar things. It’s much like a shield for your reputation and hard work. With registration, you also get to claim rights over your company logo and special signs as trademarks. These are key tools that tell customers they can trust what you offer. Another big plus of business registration is personal safety—not from danger, but from debts and legal issues. If something goes wrong with the business, like owing money or having a court problem, the law sees the company as its own person. This means that only the business’s money is at risk, not your house or car. It gives peace of mind to entrepreneurs because their personal stuff stays protected while they chase their dreams of growing a successful venture. Access to resources and opportunities Registering your business gives you access to a wide range of resources and opportunities essential for growth. From legal and financial advice to networking opportunities, having a registered business can open doors that may not be available to unregistered businesses. For instance, registering your business allows you to apply for loans, grants, or other forms of funding that can help take your business to the next level. Moreover, being a registered entity enables you to participate in government contracts and procurements, expanding your market reach significantly. Additionally, it gives you credibility in the eyes of customers and partners who seek assurance that they are dealing with a legitimate and trustworthy organization. Before Registering Your Business: Checklist Before registering your business, it’s important to go through a thorough checklist. This includes deciding on a business structure, choosing a business name, gathering necessary documents, and understanding the registration process. Decide on a business structure When starting a business, the first important step is to decide on a business structure. There are different options like sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its own legal and tax implications. The choice of structure impacts personal liability, management, and taxation. Consider carefully as each structure has its benefits and drawbacks. For example, in a sole proprietorship, you have complete control but also bear all liability personally. On the other hand, forming an LLC or corporation separates personal assets from business liabilities but involves more paperwork. Choose a business name Picking the right name for your business is crucial. It should be descriptive but not too common or unclear. Using related words in a unique way can help make it memorable and stand out from competitors. The Ultimate Guide to Naming Your Business provides valuable insights on creating a distinctive business name and avoiding common mistakes, while the ONECheck tool can aid in this process. Choosing the perfect name for your business takes time, effort, and creativity. It’s vital to find a balance between being descriptive and standing out from the crowd.

Blogs, Uncategorized

NGO Registration

/

In India, there are majorly 3 types of charitable organisations, also known as NGOs and all 3 of them are governed by different entities.  Trust Society Not-for-profit Company also known as Section 8 Company WHAT IS A TRUST? Trust Registration is done in India by the Trust Act, 1882. A Trust is created for the beneficial interest of the Beneficiary. We can broadly classify trusts into two categories on this basis: Private Trusts Public Trusts Where the Trust is created for the benefit of a specified person or class of persons, it is known as a Private Trust. On the contrary, where the Trust Property is administered for the benefit/enjoyment of general public or a fluctuating class of persons and not just limited to a selective group, it is known as a Public Trust. As such, a Private Trust need not be charitable or religious in nature as opposed to a Public Trust. What are the requirements for creation of a Trust? Settlor/Author: A person who is the owner of a property and wants to create a Trust for benefit of a particular person or group of persons. Trustee: A person in whose favour the Trust Property is bequeathed upon by the Settlor/Author and a Trust is created by declaration inter vivos or by a will. Beneficiary: The person or class/group of specified persons for whose beneficial interest the Trust is created. Objective: Any Trust is created with a particular objective. Such objective should be stated clearly under the terms of a Trust Deed or verbally when there is no Trust Deed. Trust Property: There must be property (movable/immovable) which the Settlor wants to bequeath upon the Trustee for creation of a Trust. Trust Deed: A written document which is duly signed by the Settlor/Author and the Trustee, specifying the Objective and Beneficiary of the Trust so created. Such Trust Deed is not required where: the Trust Property is movable and; the Trust is created through a will. PAN: For the Trustee to pay tax on behalf of the Beneficiary(ies), it is required to apply for a Permanent Account Number (PAN). The application should be made before the Assessing Officer, in duplicate, in Form No. 49A. TAN: If the Trust needs to deduct tax at source for its employees or other staff engaged to manage or administer Trust Property, then it needs to apply for Tax deduction Account Number (TAN) before the Assessing Officer, in duplicate, in Form No. 49B. FCRA Registration: Every Trust needs to apply for registration under Section 6(1), Foreign Contribution (Regulation) Act, 2010 (“FCRA”), if it is desirous of accepting donations from foreign sources. Separate account for Foreign Contributions (FC A/c): If the Trust wants to receive foreign donations and is registered under FCRA, it needs to open a separate account for this specific purpose. Separate set of records for foreign contributions: Every organisation/individual needs to maintain separate set of records exclusively for the receipt and utilization of foreign donations/contributions. Approval from RBI: In case where the beneficiary is a non resident, prior approval from RBI is required to that effect. TIN Registration: If a Private Trust deals with the trading and manufacturing of goods and services, even when the motive is not to earn profit, it needs to apply for Taxpayer Identification Number (TIN) before the Excise and Taxation Department of its respective State. Such TIN is used for filing VAT and Service Tax Return subsequently. Documents/Details Required for Trust Registration Following self-attested documents of the members is required:  Two identity proof documents of Trustees – Copy of Aadhaar Card/ Voter ID Card/ PAN Card (compulsory). Address proof (Voter ID, Passport, Driving license, etc.) In case your own premise, ownership and sale deed and one address proof document of registered office (like water, telephone, mobile bill or copy of bank pass book or net banking statement mentioning address of the applicant). In case the property is on rent, then you need to submit a copy of the rent agreement with NOC from Landlord. Passport size photo of Trustees. Occupation details, Email address, Contact details. Trust deed. Trust Deed Registration The Trust Deed must be executed on Stamp Paper of suitable value and signed by the settlor and two witnesses. Once the Trust Deed is executed, it can be registered with the Local Registrar. The Registrar would then register the Trust, retain photocopy of the Trust deed and return the original registered Trust Deed back to the settlor. Steps for Physical Registration Take all the necessary documents and Trust Deed draft to the Registrar office in the city. Pay the required fees. On being satisfied, registrar shall do the formalities and give a date for physical verification. After that, get the deed ready in proper stamp paper, self-attested copy of KYC, original KYC and the Settlors themselves and get the Trust registered. Steps for Online Registration A trust is required to apply for registration in Form No. 10A. The documents which are required to be furnished along with application Form No. 10A are as follows: where the trust is created, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution; where the trust is created, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution; self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be; self-certified copy of the documents evidencing adoption or modification of the objects, if any; where the trust or institution has been in existence during any year or years prior to the financial year in which the application for registration is made, self certified copies of the annual accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up; note on the activities of the trust or

Case Laws, Company Law, Others

NGO Compliances

/

In this article we shall discuss about all the compliances that the below mentioned 3 types of charitable organisations, also known as NGOs need to follow. COMPLIANCES OF A TRUST Compulsory Audit of Accounts When the total income of a Private Trust exceeds the limit given under the Income Tax Act, 1961 for non-taxable income, it should be compulsorily audited by a Chartered Accountant. Annual Return of Income After the accounts of the Trust are being audited by the Chartered Accountant, the audit report should be filed along with the Annual Return of income under Form ITR-7 on or before the due date. Report of Foreign Contributions Every Trust which receives foreign contributions needs to submit a report, duly certified by a Chartered Accountant and accompanied by an Income and Expenditure Statement, Receipts and Payments Account and Balance Sheet within 9 months of the closure of the financial year, to the Secretary, Ministry of Home Affairs, Government of India, New Delhi. A ‘Nil’ Report needs to be submitted if no such contribution is received during the last financial year. Submission of Annual Account Statement of FC A/c Duly certified copy of the Account Statement of FC A/c needs to be furnished within 9 months of the closure of financial year along with Report mentioned above in point 3. Issue of Certificate of TDS Where any Private Trust is deducting tax at source for payment of salaries to the staff or employees (kept for managing the Trust Property), it needs to furnish certificates of TDS to the persons on whose behalf TDS was being collected. It should be done within 1 month from the date of closure of the financial year. Publication of Accounts in newspaper Where annual income or receipts of the Trust (generated from the Trust Property) exceeds Rs. 1,00,00,000 (INR One Crore). Documents/Details Required for GST Registration of a Trust after registration PAN card of the Trust. PAN card and photo of settlors. Certificate of Registration. Details of bank. In case of leased property, the copy of lease deed for the registered office premises along with a NOC from Landlord and electricity bill/property tax receipt/water bill copy of the registered office property. In case of own property, copy of sale deed along with the electricity bill/property tax receipt/water bill copy of the registered office property. Appointment Proof of authorised signatory. Compliances as per GST Law Company is registered with GST Department and have valid GSTN then it has to furnish details of Sales & Purchases on Monthly Basis in prescribed form to GST department on GST Portal. Have to maintain records of Sales & Purchases on Regular Basis.  Have to collect GST on Sales Invoices and deposit through GST Returns with the GST Department.  Have to furnish Annual GST Returns, if required or cross threshold limit for Annual Return.  Exemptions for a Trust Income of a charitable and religious trust is exempt from tax subject to certain conditions. The exemptions are provided to the trusts under various provisions, inter-alia, Section 10, Section 11, etc. Some of the exemptions allowed to a trust are as under: Section 11 provides exemption for income derived from property held under trust wholly for charitable or religious purposes to the extent such income is applied for charitable or religious purpose in India. However, this exemption shall be subject to certain conditions. In view of Section 12, income in the form of voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes shall also be exempt from tax (subject to certain conditions). Any voluntary contributions received by an electoral trust shall not be included in its total income (subject to certain conditions). Income of an educational institute is subject to exemption under Sections 10(23C)(iiiab)/(iiiad)/(vi). Income of a hospital or other institution shall be eligible for exemption if it satisfies the conditions prescribed under Sections 10(23C)(iiiab)/(iiiad)/(vi). Some Additional Certificates: 80G Certificate The 80G Certificate exempts the individuals who have made donations to the charitable trusts or the Section 8 Company fully or partially from paying the taxes. For example, a charitable organizations or trust that is registered under 12A allows an individual to avail tax exemption under Section 80G. There is a maximum allowable deduction criterion. If the amount donated exceeds 10% of the total gross income, then the excess amount will not qualify for tax benefits. Who can avail tax savings under 80G? An individual who makes an eligible donation is entitled to avail tax exemption under the 80G. Donations that are made to a listed trust and organizations only qualify for deduction u/s 80G. Who cannot avail of tax savings under section 80G? If the donation is made to a foreign trust, you cannot qualify for tax saving under section 80G. The deduction cannot be claimed if the donations are made to one or more political parties. The deduction cannot be claimed even for printing or publishing brochures, flyers, and pamphlets. Donations by NRI if made to eligible institutions and trusts also qualify for tax exemptions under section 80G. If the donation is made from individual’s salary and if the donation receipt carries the name of the employer, then employees can claim under Section 80G. Donations Eligible for 100% Deduction Without Qualifying Limit National Defence Fund set up by the Central Government Prime Minister’s National Relief Fund National Foundation for Communal Harmony An approved university/educational institution of National eminence Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district Fund set up by a State Government for the medical relief to the poor National Illness Assistance Fund National Blood Transfusion Council or to any State Blood Transfusion Council National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities National Sports Fund National Cultural Fund Fund for Technology Development and Application National Children’s Fund Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory The

Uncategorized

MSME Registration

/

Introduction MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. When these industries grow, the economy of the country grows as a whole and flourishes. This sector is the job creator as well as plays a crucial role in providing large-scale employment and industrialization of rural and backward areas. These industries are also known as small-scale industries or SSI’s. Even if the Company is in the manufacturing line or the service line, registrations for both these areas can be obtained through the MSME act. This registration is not yet made mandatory by the Government but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc. The MSME became operational on October 02, 2006. It was established to promote, facilitate and develop the competitiveness of the micro, small and medium enterprises. What is MSME or SSI? Previously the existing MSME classification was based on the criteria of investment in plant and machinery or equipment. So, to enjoy the MSME benefits, the MSMEs have to limit their investment to a lower limit, as mentioned below: Existing MSME Classification Sector Criteria Micro Small Medium Manufacturing Investment < Rs.25 lakh < Rs.5 crore < Rs.10 crore Services Investment < Rs.10 lakh < Rs.2 crore < Rs.5 crore These lower limits were killing the urge to grow as they were unable to scale their businesses further. Also, there had been a long-pending demand for the revision of MSME classification so that they can further expand their operations while continuing to avail the MSME benefits. Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification by inserting composite criteria of both investment and annual turnover. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed. The following is the current revised MSME classification, where the investment and annual turnover are to be considered for deciding an MSME. Revised MSME Classification Criteria Micro Small Medium Investment & Annual Turnover < Rs.1 crore & < Rs.5 crore < Rs.10 crore & < Rs.50 crore < Rs.50 crore & < Rs.250 crore What Are The Different Types of MSMEs? There are 3 types of MSME or SSIs which can be classified as under: Micro Enterprises Micro-enterprises are the smallest entities, of course. The investment under Micro manufacturing enterprises should be less than Rs. 25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed Rs. 10 lakhs investment. Small Enterprises In small manufacturing enterprises, the investment should be in between Rs. 25 lakh and Rs. 5 crores in plant and machinery, while in small service enterprises this investment limits between Rs. 10 lakh and Rs. 2 crores. Medium Enterprises And if we’ll talk about the Medium manufacturing enterprises, then the investment should be in between Rs. 5 crore and Rs. 10 crores in plant and machinery, and for small service enterprises it should be in between Rs. 2 crore and Rs. 5 crores. MSME Registration Procedure MSME registration is completely online. MSME online registration is to be done in the government portal of udyamregistration.gov.in. The registration of MSMEs can be done under the following two categories in the portal – For New Entrepreneurs who are not Registered yet as MSME or those with EM-II and For those having registration as UAM and For those already having registration as UAM through Assisted filing For New Entrepreneurs who are not Registered yet as MSME or those with EM-II New entrepreneurs and entrepreneurs having EM-II registration need to click the button “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” shown on the home page for registering MSME. New registration of MSME is done by entering the Aadhaar card number and PAN number. When clicked on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” button on the homepage of the government portal, it opens the page for registration and asks to enter the Aadhaar number and the name of the entrepreneur. After entering these details, “Validate and Generate OTP Button” is to be clicked. Once, this button is clicked and OTP is received and entered, the PAN Verification page opens. The entrepreneur must enter the “Type of Organisation” and the PAN Number and click on the “Validate PAN” button. The portal gets the PAN details from the government databases and validates the PAN number of the entrepreneur. After verification of PAN, the Udyam Registration form will appear and the entrepreneurs need to fill the personal details and details of the plant or industry. Once the details on the MSME registration form are filled, the “Submit and Get Final OTP” button is to be clicked. The MSME online registration process will be completed and a message of successful registration with reference number will appear. Note down the reference number for future use. After verification of MSME registration form, which may take a few days, the Udyam Registration Certificate is issued. Registration For Entrepreneurs Already Having UAM For those already having registration as UAM, they need to click the button “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” shown on the home page of the government portal. This will open a page where Udyog Aadhaar Number is to be entered and an OTP option should be selected. The options provided are to obtain OTP on mobile as filled in UAM or obtain OTP on email as filled UAM. After choosing the OTP Options, “Validate and Generate OTP” is to be clicked. After entering OTP, registration details are to be filled on the MSME registration form and Udyam registration will be complete. Documents Required for MSME Registration Aadhaar Card PAN Card GST is not compulsory for enterprises that do not require a GST registration under the GST law. However, the enterprises that need to

Case Laws, Company Law

SUBSIDIARY COMPANY OF FOREIGN COMPANY IN INDIA

/

Incorporation of Wholly Owned subsidiary Company or Subsidiary Company of Foreign Company in India  1. Foreign Subsidiary  A subsidiary company of foreign Company in relation to foreign holding means a company in which a foreign holding Company a. Control the full composition of the Board of directors or;  b. Hold more than 50% of the total share capital.  2. Wholly owned subsidiary of foreign Company  It is a company incorporated under the provisions of the companies Act, 2013 and in which the foreign company holds 100% of the total share capital of such company.  3. Steps to be taken for incorporation  Reservation of the name  The procedure for name approval and name reservation is same as any Indian Company Subject to some additional points  Before making an application for the incorporation of the company, the foreign company shall apply for the reservation of the name.  Points to be considered while making reservation of name a) A foreign company can apply for its own name for reservation for its subsidiary or WOS.  b) In case if foreign company applying its own name to reservation for its subsidiary or WOS in India then first of all foreign company shall passed a resolution to use the name by its subsidiary or WOS in India.  c) Subsidiary or WOS shall use such name but with the extension of word “India” in such name for example a Company named ABC Ltd is a foreign company and intend to incorporate a subsidiary or WOS in India and it giving its own name to the subsidiary or WOS, then the same can be use in India by the company but with “ABC India Ltd d) If a foreign company having any registered trademark outside India the same can be use by it for the trademark of its subsidiary or WOS in India.  Documents required for the reservation of Name:   Board Resolution of the subscriber. Identity & Address proof of the person who is signing the Board resolution.   Trademark Certificate for using the word related to mark in the name of the Proposed¬ India Company. No Objection Certificate from the Trademark Holder along with the ID¬ & Address proof who will sign the NOC (through Board Resolution)   Copy of Certificate of Incorporation, Memorandum of Association and Articles of¬ Association.   Copy of Address Proof of Registered office of the subscriber (Bank¬ Statement/Electricity Bill or Telephone bill or charter document in which address is mentioned) to be notarized by the Notary public and further Apostilled mandatorily.  Note: All the Foreign documents shall be notarized and apostilled from the home country and if the documents are not in English version, then the translated English version is also required along with the original version.  4. Incorporation of the subsidiary or wholly owned subsidiary through Spice+  A. Login to MCA  Foreign company i.e., applicant has to login into their account on MCA website (if already have, other first of all register to MCA website.  B. Click on SPICE +  Then under Company services click on Spice+ and enter into new application.  C. Part A of SPICE+.  We can reserve the name of the company in part A of SPICE+  Thereafter the Application number will be generated for name reservation/Incorporation which is yet to be submitted/uploaded by the user and resubmission for the name will be done through Pat-A of SPICE+ If the applicant intends to apply for name, incorporation and other integrated services together, he can do so together by filling relevant information in Part A and Part B.  D. Relevant fields of Part-A of SPICE+  (i) Type* of company  (ii) Class of company  (iii) Category of company  (iv) Sub-Category of company  (v) Main division/Branch of industrial activity of the company  (vi) Description of the main division.  E. If Part-A is complete, applicant can click on  Submit Name Reservation (only can apply for 2 names) or ∙  Proceed to Incorporation (if the applicant chooses this option, then he will apply for ∙ single name and jump on the Part-B of web form).  F. Note-1  While applying for the Name, the applicant has to ensure that the proposed name selected does not contain any word which is prohibited under Section 4(2) & (3) of the Act and Rule 8 of the Companies (Incorporation) Rules, 2014. The applicant has to read and understand Rule 8 of the Companies (Incorporation) Rules, 2014 in respect of any proposed name before applying for the same.  G. Note-2  the applicant can only apply for 2 names in Part-A of SPICE+ by paying the fees of Rs. 1000.  H. Note-3 There are not any mandatory attachments, however it would be mandatory to attach relevant documents and No Objection Certificates (NOCs) in Part A of SPICe+ only when a name which requires the approval of a Regulator or NOC etc.  I. Note-4  The only one file is allowed to be uploaded as an attachment & Maximum size shall not exceed 6MB in overall.  J. Part – B of SPICE+  This part has been divided into different parts like – One section is related to Companies Structure and – Other part is related to Directors and subscriber Particulars. – Each section of Part-B shall contain “Save and continue button” – Check form validation will happen on each of the section  K. Services offered under Part-B of Spice+  (i) Incorporation  (ii) DIN allotment  (iii) Mandatory issue of PAN  (iv) Mandatory issue of TAN  (v) Mandatory issue of EPFO registration  (vi) Mandatory issue of ESIC registration  (vii) Mandatory issue of Profession Tax registration (Maharashtra)  (viii) Opening of Bank Account and  (ix) Allotment of GSTIN.  L. Relevant Documents and information to be provided by foreign company  1. Duly apostle copy of the resolution by the Foreign Company, for their authorized representative.  2. Duly apostle copy of the resolution by the Foreign Company, for approving the no. and of subscribers.  3. Duly notarized and apostle copy of the ID proofs of the authorized representative, passport is mandatory if such person is non-resident;  4. Name of

GST, Income Tax, Investment(Savings)

ITR Filings

/

What is the meaning of income tax? Taxes are of two types, namely, ‘Direct Tax’ and ‘Indirect Tax’. Taxes that are directly levied on the income is known as ‘Direct Tax’ For e.g. ‘Income Tax’. The income earned is divided into the following ‘Heads of Income’- 1. Income from Salary, 2. Income from House Property, 3. Income from Business and Profession, 4. Income from Capital Gain, and 5. Income from Other Sources. How is income tax calculated? The Income Tax is calculated based on the ‘income tax slab rates’ as applicable during the respective Financial Year. Income tax slab rates (both old and new tax regime) as applicable for the Financial Year 2020-2021 (i.e., the Assessment Year 2021-2022) is briefed hereunder- OLD TAX REGIME- Tax slab for individuals- Individual (resident or non-resident) Resident senior citizen(i.e., age group 60 years or more but less than 80 years) Resident super senior citizen(i.e., age group above 80 years) Net Income Tax Rates Net Income Tax Rates Net Income Tax Rates Up to INR 2,50,000 NIL Up to INR 3,00,000 NIL Up to INR 5,00,000 Nil INR 2,50,001 – INR 5,00,000 5% INR 3,00,001 – INR 5,00,000 5% INR 5,00,001 – INR 10,00,000 20% INR 5,00,001 – INR 10,00,000 20% INR 5,00,001 – INR 10,00,000 20% Above INR 10,00,000 30% Above INR 10,00,000 30% Above INR 10,00,000 30% – – Tax slab for HUF, AOP and BOI or any other artificial juridical person- Net Income Tax Rates Up to INR 2,50,000 NIL INR 2,50,001 – INR 5,00,000 5% INR 5,00,001 – INR 10,00,000 20% Above INR 10,00,000 30% NEW TAX REGIME- Tax slab for individual and HUF- Total Income Tax Rates Up to INR 2,50,000 NIL INR 2,50,001 – INR 5,00,000 5% INR 5,00,001 – INR 7,50,000 10% INR 7,50,001 – INR 10,00,000 15% INR 10,00,001 – INR 12,50,000 20% INR 12,50,001 – INR 15,00,000 25% Above INR 15,00,000 30% OTHER INCOME TAX SLABS- Partnership firm (including LLP) and the local authority are taxed at the rate of 30%. Domestic company- Normal Rate Special Rate Particulars Tax Rates Particulars Tax Rates Turnover or gross receipts up to INR 400 Crores in the Financial Year 2019-2020 25% As per section 115BA 25% Others 30% As per section 115BAA 22% – – As per section 115BAB 15% Co-operative society- Income Tax Rates Up to INR 10,000 10% INR 10,001 – INR 20,000 20% Above INR 20,000 30% It is important to note that ‘Surcharge’ and ‘Health and Education Cess’ is applicable over and above the tax rates mentioned above. What are the Income Tax Returns (ITRs) in India? Income Tax Returns- A Form has to be filed as a statement of income earned. It is arranged in such a way that calculating tax liability, scheduling tax payments, or requesting refunds for the overpayment of taxes has been made convenient for the taxpayers. They must, first, determine the type of Income Tax Return (ITR) Form they need to fill before actually filing their Returns. Which Form is to be filled, depends on the income that the taxpayer earns. Its purpose is to report our income and taxes paid thereon to the government. Basically, income tax returns (IT returns) is a form through which the annual income of the taxpayer is reported. Based on the income assessment group, the taxpayer will have to submit one of the following ITR forms- ITR forms Applicable to ITR 1 Resident individual-Having income from ‘salary’, ‘one house property’, ‘other sources’; andHaving total income up to INR 50 Lakhs and agricultural income up to INR 5,000. ITR 2 Individual and HUFs not having any income from profits and gains of business or profession ITR 3 Individual and HUFs having income from profits and gains of business or profession ITR 4 Resident individual, HUFs and Firms (not LLP)-Having total income up to INR 50 Lakhs; andHaving income from the business and profession computed under section 44AD, section 44ADA or section 44AE. ITR 5 Any person other than-Individual,HUF,Company, andPerson filing return in ITR-7. ITR 6 Companies (other than companies claiming exemption under section 11) ITR 7 Any person (including company) who are required to furnish return under section 139(4A); or section 139(4B); or section 139(4C); or section 139(4D). What is the last date for filing ITR for AY 2021-22? As per the latest issued circular no. 17/2021 dated 9th September 2021, the due dates for filing the ITR for the Financial Year 2020-2021 is extended. Original due date and extended due dates are tabulated hereunder- Particulars Original due date Extended due date ITR filing by the taxpayers not covered under tax audit 31st July 2021 31st December 2021 ITR filing by the taxpayers covered under tax audit 31st October 2021 15th February 2022 ITR filing by the taxpayers required to furnish report referred in section 92E 30th November 2021 28th February 2022 E-filing process F.Y. 2020-2021- Recently, on 7th June 2021, the Central Board of Direct Taxes launched the new e-filing portal www.incometax.gov.in.Despite many initial technical challenges, the new portal has certainly tried to make the ITR filing much easier. ITR filing is possible in both online and offline modes. The basic steps to be followed for filing the ITR is summarized hereunder- STEP 1 – Visit site https://www.incometax.gov.in/iec/foportal. STEP 2 – Click the ‘Login’ icon available on the right-hand side. STEP 3 – Enter ‘User ID’ and click Continue. STEP 4 – Enter ‘Password’ and click Continue. STEP 5 – Click ‘File Now’. STEP 6 – Select Assessment Year 2021-2022 from the drop-down list. STEP 7 – Select the mode of filing i.e. Online or Offline. STEP 8 – Click Continue. STEP 9 – Based on the mode of filing selected, fill up the required details and submit the return. Advantages of tax filing Processing of Loans & Visa: If you apply for any loans such as a home loan, car loan, etc., the eligibility and quantum of loan would depend on your income. This can be established through filed ITRs. ITR will help your lender to assess your repayment capacity. If you

Case Laws, Investment(Savings), Loan Or Working Capital, Market Research & Analysis, Marketing

FOREIGN DIRECT INVESTMENT IN INDIA

/

FDI is one of the important tools of economic growth for a developing nation like India. So to boost the flow of foreign investment the process of liberalization is undertaken. However, liberalization of an economy always comes with regulations. Routes for FDI Basically, there are two routes for FDI in India. There is the Automatic Route, where no approval or authority is required by the private foreign investor. He can invest in any company it wishes with no need for government approval. And then there is the Government Route. In this route, there is no investment without the prior approval of the Government of India. Foreign Direct Investment in India does not have a uniform rate. Some industries allow 100% FDI, i.e. the entire funds of the business can be from foreign direct investment. The percentages vary from 26% to 49% to 51%. There are a few industries where FDI is strictly prohibited under any route. These industries are Atomic Energy Generation Any Gambling or Betting businesses Lotteries (online, private, government, etc) Investment in Chit Funds Nidhi Company Agricultural or Plantation Activities (although there are many exceptions like horticulture, fisheries, tea plantations, Pisciculture, animal husbandry, etc) Housing and Real Estate (except townships, commercial projects, etc) Trading in Transferable Development Rights (TDR’s) Cigars, Cigarettes, or any related tobacco industry SECTOR SPECIFIC CONDITION FOR FDI FOR 100% AUTOMATIC ROUTE 1. Air Transport Services (non-scheduled and other services under civil aviation sector) Main condition: 1. Non-Scheduled Air Transport Services 2. Helicopter services/seaplane services requiring DGCA approval Other condition: (a) Air Transport Services would include Domestic Scheduled Passenger Airlines; Non-Scheduled Air Transport Services, helicopter and seaplane services. (b) Foreign airlines are allowed to participate in the equity of companies operating Cargo airlines, helicopter and seaplane services, as per the limits and entry routes mentioned above. (c) Foreign airlines are also allowed to invest in the capital of Indian companies, operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital. Such investment would be subject to the following conditions: (i) It would be made under the Government approval route. (ii) The 49% limit will subsume FDI and FII/FPI investment. (iii) The investments so made would need to comply with the relevant regulations of SEBI, such as the Issue of Capital and Disclosure Requirements (ICDR) Regulations/Substantial Acquisition of Shares and Takeovers (SAST) Regulations, as well as other applicable rules and regulations. (iv) A Scheduled Operator’s Permit can be granted only to a company: iv.a) that is registered and has its principal place of business within India; iv.b) the Chairman and at least two-thirds of the Directors of which are citizens of India; and iv.c) the substantial ownership and effective control of which is vested in Indian nationals. (v) All foreign nationals likely to be associated with Indian scheduled and non-scheduled air transport services, as a result of such investment shall be cleared from security view point before deployment; and (vi) All technical equipment that might be imported into India as a result of such investment shall require clearance from the relevant authority in the Ministry of Civil Aviation. (i) The FDI limits/entry routes, mentioned at paragraph 5.2.9.2 (1) and 5.2.9.2 (2) above, are applicable in the situation where there is no investment by foreign airlines. (ii) The dispensation for NRIs regarding FDI up to 100% will also continue in respect of the investment regime specified at para (c) (ii) above. (d) In addition to the above conditions, foreign investment in M/s Air India Limited shall be subject to the following conditions: (i) Foreign investment in M/s Air India Ltd., including that of foreign airline(s), shall not exceed 49% either directly or indirectly. (ii) Substantial ownership and effective control of M/s Air India Ltd. shall continue to be vested in Indian Nationals 2. Automobiles Main condition: Subject to the provisions of the FDI policy, foreign investment in ‘manufacturing’ sector isunder automatic route. Further, a manufacturer is permitted to sell its products manufactured in India through wholesale and/or retail, including through e-commerce, without Government approval. 3. Biotechnology (Greenfield) Main condition: Greenfield projects Other condition: Nil 4 Broadcast Content Services (Up-linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels) Main condition: Up-linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels Other condition: Nil 5. Broadcasting Carriage Services Main condition: (a)Teleports (setting up of up-linking HUBs/Teleports); (b) Direct to Home (DTH); (c) Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalizationand addressability); (d) Mobile TV; (e) Headend-in-the Sky Broadcasting Service(HITS) (f) Cable Networks (Other MSOs not undertaking upgradation of networks towards digitalization and addressability and Local Cable Operators (LCOs)) Other condition: Infusion of fresh foreign investment, beyond 49% in a company not seeking license/permission from sectoral Ministry, resulting in the change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require Government approval. 6. Capital Goods Main condition: Subject to the provisions of the FDI policy, foreign investment in ‘manufacturing’ sector isunder automatic route. Further, a manufacturer is permitted to sell its products manufactured in India through wholesale and/or retail, including through e-commerce, without Government approval. 7. Cash & Carry Wholesale Trading/Wholesale Trading (including sourcing from MSEs) Main condition: Cash & Carry Wholesale Trading/Wholesale Trading (including sourcing from MSEs) Other condition: Guidelines for Cash & Carry Wholesale Trading/Wholesale Trading (WT): (a) For undertaking WT, requisite licenses/registration/ permits, as specified under the relevant Acts/Regulations/Rules/Orders of the State Government/Government Body/Government Authority/Local Self-Government Body under that State Government should be obtained. (b) Except in case of sales to Government, sales made by the wholesaler would be considered as ‘cash & carry wholesale trading/wholesale trading’ with valid business customers, only when WT are made to the following entities: (i) Entities holding sales tax/ VAT registration/service tax/excise duty registration; or (ii) Entities holding trade licenses i.e. a license/registration certificate/membership certificate/registration under Shops and Establishment Act, issued by a Government Authority/Government Body/Local Self-Government Authority, reflecting that the entity/person holding the license/ registration certificate/ membership certificate,

CONTACT US

Fill up the form and our team will get back to you in 24 hours.

Created with Fabric.js 1.7.22

+91-7240000190

Created with Fabric.js 1.7.22

+91-9528107113

Created with Fabric.js 1.7.22

+91-6375385821

Created with Fabric.js 1.7.22

info@firststage.in

Created with Fabric.js 1.7.22

L-2/39, 2nd Floor, New Mahavir Nagar Outer Ring Road, Opposite Kangra Niketan, New Delhi - 110018

2022 FIRST STAGE IS THE LEADING PROVIDER OF BUSINESS, LEGAL & TAX SOLUTIONS IN INDIA.

© 2024. All Rights Reserved.

Scroll to Top