AJSH & Co LLP hosted the Adam Global Asia Pacific Regional Conference in New Delhi, India from March 24-25, 2017. Each year, ADAM Global Regional member firms assemble in a different global metropolis for 2 days to share ideas, identify areas of collaboration and build relationships with fellow member firms.
Adam Global is multidisciplinary network of independent Legal, Accounting and Consulting firms. It is the fastest growing network with more than 130 member firms across the Americas, Europe, Asia Pacific, Africa and the Middle East.
Networking is all about planting relationships. At the recent Adam Global Regional Conference, Mr. Ankit Jain, the managing partner of AJSH & Co LLP took a step forward in leveraging the knowledge to multiply gains and losses. The conference was organized in order to provide with numerous opportunities to build new relationships and strengthen existing ones. The conference started with introduction on “Doing business in India” presented by Mr. Ankit Jain, being the Asia Pacific’s president of Adam Global. He shared the facts that India‘s economy is the emerging one that might prove as the “game changer”. Thereafter, Mr. Sumant Batra shared his thoughts on India Law and Insolvency Code. Later, Alternate Investment Fund, NRI Investments in India, Realty were shared in the presentations by the other members.
The member firms are benefited from such alliances that always provide cross marketing strategies, promotes greater collaboration, cross business opportunities.
Doing business in India offers enormous opportunities for Foreign companies. However, India is a large and complex market. It should not be seen as one market, but a series of interconnected regional markets where the legislative and investment climate may change from one state to another.
It is wiser to be in India now…
- Fastest growing economy in the world
(Current: 7% , by 2018: 7.8%)
- World’s third largest economy
(Would double in size to US$ 4–5 trillion in a decade)
- Taxes on companies has been reduced to 25%
(For companies with annual turnover less than 50 Crores)
- World’s second-largest telecommunication market
(1058.86 million subscribers)
- By 2020, retail market is expected to grow to US$ 1.1 trillion
(growing at a high rate of 20%-25% p.a.)
- World’s sixth largest pharmaceutical market by 2020
- By 2050, India will have added 300 million people
- Working age group will be more than 64% by 2021
- Growing urban markets
(23.1 Million people shifting from rural to urban areas in two decades)
- Low labour costs
(Total labour force of nearly 530 million)
- Purchasing power parity, India’s economy is third largest in the world
(Current-$ 8.7 trillion, by 2025-$ 20 trillion )
Foreign Direct Investment into India
- All sectors other than sectors which are specifically prohibited or under approval route
- Should comply with sector based investment and other conditions (i.e. sectoral caps)
100% FDI through Government approval route
- Extraction of titanium
- Publishing of scientific & technical magazines/specialty journals/ facsimile
- Edition of foreign newspapers
- Satellites (establishment & operation)
- Pharmaceuticals (Brownfield)
100% FDI: Government approval required beyond 49%
- Telecom Services
- Broadcasting Carriage Services
- Single Brand product retail trading
100% FDI: Government approval required beyond 74%
- Existing projects of Airport
49% FDI : No Government approval required
- Infrastructure Company in the Securities Market
- Pension Sector
- Power Exchanges
- Air Transport Services (Scheduled): 100% for NRI
49% FDI through Government approval route
- Broadcasting Content Services (except Up-linking & Down-linking
of Non-‘News & Current Affairs’ TV Channels)
- Private Security Agencies
FDI limits less than 100%
- Banking (Private Sector): 74% FDI is allowed. However,
Government approval is required beyond 49%
- Banking (Public Sector): 20% FDI is allowed with Government
- Multi Brand product retail trading: 51% FDI is allowed with
- Print Media: 26% FDI is allowed with Government approval
Setting up a limited company will mean more administration and more paperwork than if you are a sole trader but there are many advantages to being a limited company, not least eliminating and personal financial liability.
When a sole trading business fails then the owner is personally responsible for any debt, which can have a negative effect on your credit rating and ability to obtain personal loans in the future. You could risk becoming personally bankrupt if the debts are too high for your to pay off.
If you set your business up as a limited company you are protected from this risk.
What are the Benefits :
Whilst running a limited company does have its fair share of responsibility, and the administrative responsibilities are certainly greater than other ways of working, there are many advantages too.
- Limited liability – In simple terms, if you run a Limited Company you are protected should things go wrong. Assuming all rules have been followed, as a director you will not be personally liable for any financial losses made by the company.
- Separate entity – A Limited Company is a legal entity in its own right. This means that everything from the company bank account, to the ownership of assets relates to the business. They are totally separate from the interest of the directors and shareholders.
- Tax – As a director and shareholder of a limited company you could elect to take the majority of your income in the form of dividends, which enables you to manage your own tax liability and potentially save on National Insurance costs.
- Perception – If you plan to do business with larger companies, it can help if you are working via a Limited Company as it gives off a more professional image. In some industries, it may even be a mandatory requirement as they will not deal with sole traders or partnerships.
- Protection – As well as the limited liability protection mentioned above, once you have successfully registered your company, your company name is protected by law. Companies House has very stringent rules for the naming of companies so no one else can use the same name as you, or anything deemed too similar.
- Ownership and succession – As the sole shareholder in your business, you own the business. However, a Limited Company can easily transfer ownership of shares, or existing shareholders can sell a stake in the company to other parties at any time. If for example a shareholder wishes to retire, or bring a new director on board, it is far easier to transfer ownership, or part ownership, of a Limited Company than it is with a less formal business structure.
- Take home pay – It’s safe to say that this is the area where you can really reap the rewards of running your own Limited Company. The only person you need to pay as a Limited Company is yourself – combined with the tax efficiencies on offer, this means you can keep anything from 81 to 86 percent.
Accounts must be prepared each year but most small companies are not required to have them audited so the process is relatively simple, especially now that the process can be done online.