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BUSINESS OPPORTUNITIES IN INDIA

India has emerged as the number one FDI destination in the world during the first half of 2015.With FDI capital inflows of US$30.8b, India has outpaced all other economies, moving up to the premier position from being in the fifth spot during the corresponding period of the previous year.
In FY15, India’s growth was 7.3 per cent, which would increase to 7.5 percent each in the next two years of 2016-17 and 2017-18.
 
Why invest in India?
India is a large and rapidly growing consumer market constituting up to 300 million people for branded consumer goods.

  • This market is estimated to be growing at 8% per annum.
  • Demand for several consumer products is growing at over 12% per annum.

 

Consultancy on following:

 

Key Investors

  •  Expansion of business
  •  Setting up of new business abroad
  • SMEs and Large size firms

 

Benefits

  •  Better Business Contacts
  •  Ease of Business Promotion
  •  Effective communication
  •  Global Presence
  •  Improvement in Quality of Service
  •  Cost Savings
  •  Increased Revenue Potential

 

INDIA GROWTH & INITIATES

  • By 2040, India will have added 1bn people (Almost it’s entire current population to the middle class)
  • The biggest youth population in the world.(572 million are under the age of 24)
  • One of world’s top ten industrial producers.(19th largest exporter and 10th largest importer in the world.)
  • World’s third largest economy by 2030.
  • One of the world’s biggest telecom markets (with over 850 million wireless subscribers ).
  • One of fastest growing retail markets. (The estimated economic value of top 5 retail markets is $450 billion.)
  • Purchasing power parity, India’s economy is fourth largest in the world at $ 4.06 trillion

 

Now that you now know these facts, it becomes important that you sit and check yourself to see if you would still want to go ahead with setting up business in India. This is not to say that India isn’t a favorable place for business. As a matter of fact, you can make loads of returns of investment in India.

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Government Sets Up Experts Groups to Look Into Auditing Industry.

Acting on a petition Indian audit firms sent to prime minister Narendra Modi recently the corporate affairs ministry  has constituted an expert group to delve into the issues related to the operations of audit firms In the country,

The elected expert group members former competition commission of India. (RBI) deputy governor NS Vishwanathan will study the operating structures of multinational audit firms implementation of audit rotation and use of restrictive covenants by global investors. They have two months to engage with relevant stakeholders and make suitable recommendations to the government. It’s a positive order for Indian audit firms.

The expert group has the right balance of experts to review the burning issues faced by Indian audit firms arising from monopoly of multinational audit firms in India. CEO at auditing firms KS Aiyar & Co. The principles of anti competitive measures as per law need to be considered in every service including right now, audit concentration in India is a grave systemic risk.

Though the Indian firms audit slightly more than 60% of ET 500 companies, there has been a perceptible shift towards the multinational firms, especially amongst larger Indian companies. But now the companies Act 2013 mandated audit rotation threatens to speed up Client exodus.

In July representatives of the top 20 Indian audit firms met in Mumbai to discuss ways to combat the increasing influence of multinational firms. Post that meeting Aiyar on behalf of the firms had drafted a petition to the prime minister pointing out hegemony of the big four auditing multinationals and alleging that they engaged In illegal actions.

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Tax Department Unveils Draft Rules For Registration Under GST

The government has put out the draft rules for the goods and services tax for discussion ahead of the September 30 meeting of the centre and states to discuss the regulations. In view of the right deadline, the finance ministry has asked for feedback by September 28. Rules relate to registration, invoice and payments, laying down procedures, guidelines and documentation.

The GST council will discuss the rules on September 30, The government has prescribed a largely online process for registration and laid down strict timelines for completing the process. We intend to have these rules approved by GST council in its meeting on 30th September so that business systems can be modified by all revenue.

It’s encouraging to see that the rules largely envisage electronic interactions between the tax authorities and industry with only need-based physical intervention like verification of premises on the application filed for Private company Formation in Gurgaon Indirect tax. Further all the PAN details are to be verified online with CBDT database which is expected to bring larger part of the business in the mainstream.

Your desired name must be included, typically with a corporate identifier, such as Corporation, Incorporated, Company, or an abbreviation, such as Inc. You may want to conduct a preliminarily name available search before submitting the Incorporation documents. If you incorporate online, the company incorporation in gurgaon service you purchase will typically include this. Remembers that the state holds final approval rights to ensure that a name is not already in use or in deceptive similar to one in use.

Much of this had already been explained through the FAQs issued by the finance industry earlier giving industry an advance peak into the details. Rules provide for complete electronic payment of tax and adjustment of credit and a unique ID number will be generated by the common portal for GST transactions for every debit or credit transaction.

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Register a Subsidiary Company in India

Establishment of subsidiary companies or the wholly-owned subsidiaries, is certainly a very elegant and preferred means for extending one’s businesses to foreign countries of choice. Therefore, the majority of multinational corporations opt for setting up their subsidiary companies in the targeted countries, for the ultimate purpose of capturing market in the destination countries. In ours this webpage, we are offering rich, exclusive, and very profitable information about the subsidiary company formation, particularly in India.

Basic Requirments For Register Subsidiary
1. Indian Resident Director – Local director can be appointed without any equity participation in the subsidiary company and
2. Principal Place of Business in India – A rented or Leased Premises will be sufficient for this purpose.

Steps In Registration Of Subsidiary
1. Obtain Digital Signature for each Director of the proposed Subsidiary Company.
2. Apply for Directors Identification Number (DIN) of each proposed director of the Company.
3. Application for approval of Name of the Company.
4. Drafting of the Article and Memorandum of Association for the proposed Subsidiary Company and preparation of other documents for Incorporation of the Company.
5. Registration of Company.

Post Incorporation Complianes
1. Obtaining Permanent Account Number (PAN);
2. Opening of Bank Account for Subsidiary Company;
3. Obtaining various registrations including VAT, Service Tax, TIN, Excise etc depending on the requirements of the business of the Company;
4. Advance Foreign Remittance Reporting (AFRR) – To be submitted to Reserve Bank of India (RBI) within one month of receipt of FDI Remittance in India;
5. Allotment of Shares to the Holding Company within 180 of receipt of FDI;
6. Submission of FC-GPR Form with RBI within 30 Days of Allotment of Shares;

Documents & Information Required For Registration Of Subsidiary
1. Requirements for DIN Application of the Foreign Directors
a) Verification letter in Form DIR-4. Duly attested by the Consulate of the India Embassy in the Home Country of the Director or Apostils* (Worksheet for procurement of DIR-4 is attached).
b) Verification of Signatures of Subscribers in Form INC 10 : 1 Photo should be pasted in the box provided in the form. Duly attested by the Consulate of the India Embassy in the Home Country of the Director or Apostille*.

2. Details of at-least two Directors / Promoters of the company for obtaining DIN (Director’s Identifications Number)
– Complete Name
– Address (including City, State, Pin Code, Country)
– Father’s Name
– Date of Birth (mandatory)
– Passport Photograph of every proposed Director.
– Nationality
– Occupation
– Educational Qualification
– Place of Birth
– Two Copy of Pan Card as a proof of identity (mandatory requirement for Indian national).
– Two Copy of Aadhar Card/Voter Id/Driving Licence/Passport (One of these Mandatory for Indian Nationals)
– Two Copy of Passport as a proof of identity (mandatory requirement for Foreign national)
– Copy of Electricity Bill / Telephone Bill / Mobile Bill / Bank Statement as a Proof of Address.

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Why Register a Limited Company?

A limited company is most popular business models for all sizes of organisations. This is due to the many benefits it provides over other types of legal business structures. Whether you choose to register a commercial company limited by shares or a non-profit company limited by guarantee, there are a number of perks that far surpass those available to the sole trader or contractor working through an umbrella company.

Types of Private Limited Company
Private limited companies can be registered as ‘limited by shares’ or ‘limited by guarantee’, but what’s the difference?

Limited by shares

    Used by profit-making enterprises and contractors.
    Owned by one or more people known as ‘shareholders‘, or ‘members’.
    Day-to-day operations managed by one or more people known as ‘directors’.
    Company is dividend into shares, each of which represents a percentage of the business.
    Members receive a proportion of profits in relation to their percentage of ownership.
    Liability of members is restricted to the nominal value of their shares.

Limited by guarantee

    Used by non-profit enterprises and charities.
    Owned by one of more people known as ‘guarantors‘, or ‘members’.
    Managed by directors.
    No shares or shareholders.
    Members do not usually receive any sare of profits.
    Liability of members restricted to the nominal value of their guarantees.



Top 7 Reasion to Register limited company.

1. Minimising personal liability
Limited liability is one of the biggest benefits of running a business as a limited company. Protecting your personal assets is crucial if you plan to operate in the public domain or provide high value supply or services that could potentially lead to liability claims and put your home and finances at risk.
If your business is unable to pay its creditors or is faced with legal claims for damages, you will only have to contribute the nominal value of your unpaid shares or guarantee. Most shares and guarantees have a nominal value of £1 each. Beyond the limit of member liability, the business itself is wholly responsible.

2. Professional status
Limited status could significantly boost the perceived value of your business, thus attracting more clients and investors. Many large corporations refuse to award contracts to sole traders, instead choosing to deal exclusively with other limited companies. This is because they are held in higher regard.

3. Tax efficiency and planning
Limited companies pay 20% Corporation tax on profits, as opposed to 20-45% Income Tax paid on sole trader profits. This offers greater flexibility for tax planning.
Reinvesting surplus cash
Rather than withdrawing all available profits each year and paying more personal tax on top of your Corporation Tax liability, you can retain surplus income in the business to pay for future operational costs and growth. This makes more sense than withdrawing all profits, paying Income Tax and reinvesting your own finances when the business needs additional capital.
Deferring personal income
You can defer the withdrawal of profits to a later tax year in which a lower rate of business or personal tax tax is due. This is an efficient strategy if the withdrawal of all available profits would take you into a higher Income Tax or Dividend Tax bracket.

4. Higher personal remuneration
As a director and shareholder, you can keep your income below higher tax rate thresholds and reduce your National Insurance Contributions by issuing your take-home pay as a combination of a salary and dividends. This strategy will enable you to avoid entering the higher and additional Income Tax brackets

5 . Separate legal identity
Unlike the sole trader structure, a limited company is a legal ‘person’ in its own right, with an entirely separate identity from its owners and directors. As a result, companies can enter into contracts in their own name and are responsible for their own debts and liabilities.
The owners are only liable for the value of their unpaid shares or personal guarantees, rather than the full extent of the company’s liabilities. If a company becomes insolvent, it is the business itself which is declared bankrupt, not the shareholders or directors
Furthermore, this means that companies enjoy perpetual succession and survive the death or ownership of the original shareholders or guarantors. The business can be sold or transferred to other people at any time, thus enabling the company to continue to exist with minimal disruption to clients and employees.

6. Credibility and trust
By operating as a limited company, potential clients will assume your business is bigger and more established than it may be in reality. This professional, corporate image will add valuable prestige and credibility to your business. Potential clients, suppliers and investors are also more likely to trust your firm.
Image is important and can drastically improve your competitive advantage when bidding for valuable contracts, particularly if you provide high-risk services in the financial, IT or construction industry.

7. Investment and lending opportunities
Companies can have multiple owners, so it is possible to raise additional capital by selling portions (‘shares’) in the business to new investors. Generally, companies also have more lending opportunities than sole traders, and certain banks will only lend to incorporated businesses. Furthermore, it is often possible to secure a loan for a company without the need for shareholders or directors to provide security against their own property.