Welcome to AJSH & Co.

Blog Banner
b03

Company registration in India

Company registration in India means legally getting the right to do business.In India, registration of company is also known as formation of business or incorporation of company.
Let us see what is this Company thing all about and then move on to Company Registration.

 

What are the documents required to register your startup?

An entity required to be incorporated as a Private Limited Company or a Limited Liability Partnership has to be registered with the Ministry of Corporate Affairs. Now the government has come up with several initiatives where an entity can be incorporated in just 1 day.

 

Private Limited Company

A Pvt. Ltd company allows you to play around with the capital structure, you can also play around with the rights distribution, which isn’t so easy in a limited liability partnership. Hence, investors will ask you to convert from an LLP to a Pvt. Ltd. company.

The Directors of the proposed company must have a Digital Signature Certificate (DSC) to sign the e-forms.
The proposed name of the company should be given along with the main line of business.

 
The directors and the subscribers of the proposed company should have the following:
(a) PAN as nationality proof

(b) Photo

(c) Aadhar/ Driving Licence/ Voter Card/ Passport as identification proof

(d) Utility Bill i.e, electricity bill/ telephone bill/ bank statement etc.

(e) email-id

(f) mobile number
The incorporation documents required are as follows:
(a) Affidavit by the promoters

(b) Declaration in DIR – 2 by the directors

(c) Declaration in INC – 9 by the promoters

(d) Declaration in INC – 8 by a Chartered Accountant/Company Secretary/Lawyer/Cost
Accountant

 

Limited Liability Partnership

A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.

The partners of the proposed LLP must have a Digital Signature Certificate (DSC) to sign the e-forms.
The proposed name of the LLP should be given along with the main line of business.

 
The partners of the proposed LLP should have the following:
(a) PAN as nationality proof

(b) Photo

(c) Aadhar/ Driving Licence/ Voter Card/ Passport/ electricity bill/ telephone bill/ bank statement

(d) email-id

(e) mobile number
For Registered office of the LLP:
(a) Ownership deed (if the property is owned) or

(b) Rent agreement along with latest Rent receipt and P.Tax (if the property is rented) or

(c) NOC from the owner of the property and

(d) Latest Utility Bill in the name of the owner i.e, electricity bill/mobile bill/ telephone
bill/ gas bill.

The LLP agreement should be prepared and executed on the stamp paper.

 

Related : HOW GST WORKS IN INDIA

save-your-one-person-business-from-extinction-ebook-bookboon-bl

How India & Afghanistan can grow together

India remains an integral part of Afghanistan’s steady progress in institutionalizing peace, pluralism, and prosperity. Ties between Afghanistan and India go beyond the traditionally strong relations at the government level. Since time immemorial, the peoples of Afghanistan and India have interacted with each other through trade and commerce, peacefully coexisting on the basis of their shared cultural values and commonalities.

This history has become the foundation of deep mutual trust. Public opinion polls in Afghanistan confirm this, as well as the sentiment Afghans share about feeling at home whenever they visit India.

 

Growing Asia

  • Fastest growing continent in the world with 60% of world’s
    population (4.2 billion)
  •  Two-third of global growth would come from Asia in next few
    years
  •  In 1990, the top five economies were not among Asia. Today,
    Japan, China and India are top 3 economies in the world
  •  Asia’s share is expected to touch 50% of world’s GDP by 2050

 

Why Afghanistan

  • A population of 34 million and increasing
  •  Five year compound annual growth (CAGR) is 5.4%
  •  GNI per capita is US$630
  •  FDI has increased from US$ 230k in 1970 to US$ 169mn in 2015
  •  Exports and imports taken together equals 53% of GDP
  •  Infusion of billions of dollars in international assistance and investments as well as
    remittances from Afghan expats
  •  World Bank expects to provide US$250-300 mn in grants annually to Afghanistan
    through the World Bank Group
  •  One of the mineral-rich countries of the world
    (the country holds US$ 3 trillion in untapped mineral deposits without Uranium )
  •  Low tax rates in Afghanistan
    (Corporate tax rates are 20% with an overall tax burden of 6.5% only of total domestic income)
  •  Improved agricultural production
  •  Formation of democratic government & improved regulatory environment

 

India- Afghanistan relations

  • Bilateral relations between the two countries have always been strong and
    friendly
  •  India’s financial assistance to Afghanistan was 880 crore in 2015-16
  •  In 2016, India has also extended an aid of over UD$2 billion to Afghanistan
    for one of India’s most expensive projects in Afghanistan (Salma dam)
  •  India-Afghanistan bilateral trade stood at US$643 million in 2015-16
  •  Afghanistan sets a target of US$10 billion for bilateral trade and
    investment with India in five years
  •  In February 2017, Indian visa regime has been further liberalised to make
    it even more convenient for Afghan nationals to visit India

 

Our support to Afghanistan

  • Needs in Afghanistan
    • Skilled manpower
    • Professional services for businesses
  •  Strengths to work with India
    • Convenience of working in the same time zone
    • Connectivity time is less than two hours
    • Similar cultural backgrounds

 

Why India can be a strong partner to Afghanistan

  • World’s third largest economy (Would double in size to US$ 4–5 trillion in a decade)
  •  Fastest growing economy in the world (Current: 7% , by 2018: 7.8%)
  •  By 2020, retail market is expected to grow to US$ 1.1 trillion (growing at a high rate of 20%-25% p.a.)
  •  IT-business process management (BPM) sector in India is estimated to expand at a CAGR of 9.5% to US$ 300 billion by 2020
  •  Indian construction equipment industry’s revenues are estimated to reach US$ 22.7 billion by 2020
  •  Total FDI equity inflows touched US$ 35.84 billion (till December 2016)
  •  Under FDI, all sectors other than sectors which are specifically prohibited or under approval route
  •  Taxes on companies has been reduced to 25% (For companies with annual turnover less than 50 Crores)
  •  Low labor costs (Total labor force of nearly 530 million)
  •  Working age group will be more than 64% by 2021 (15-59 years)
  •  Skill set of India has improved over the years with 40% employable candidates. We have 1.5mn engineering pass outs in India every year

 

Related : Doing Business in India

Tax-Return

Efiling of Income Tax Return

What is a income tax return ?

It is a prescribed form through which the particulars of income earned by a person through various sources(like salary, business, professional fees, interest, capital gains, etc.) in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the Financial year, called as income tax return or ITR. It is like your report card in school but instead of  marks you have income and taxes.  It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly. Different forms are prescribed for filing of returns for different Status and Nature of income .

 

What is efiling ?

Efiling or electronic filing is submitting your income tax returns online. There are two ways to file your income tax returns. The traditional way is the offline way where you go the Income Tax Department’s office to physically file your returns. The other way is when you efile through the internet. Over the past few years, efiling has become popular because it is easier, doesn’t require prints of documents and can be done for free.

 

What are advantages of e-Filing?

  • Anywhere, Anytime files, 24 x7 x 365 service.
  • Easy, fast,free and secure
  • Faster processing and quicker refunds.
  • Value added services like viewing Form 26AS,  tracking of refunds,email, SMS alerts regarding status of processing and refunds.
  • And now it is also compulsory for most.

 

Is E-filing of Income tax Return compulsory?

  • E-Filing Returns is  compulsory for:
    Individuals earning over Rs 5 lakh a year. They are required to file their tax returns in the electronic format from AY 2013-14 (FY 2012-13) and subsequent assessment years.
  • Individual/HUF, having total Income of Rupees 10 lakhs. It was made mandatory from AY 2012-2013((FY 2011-12) and subsequent assessment years.
  • Individual/HUF /Firm auditable under section 44B of the IT Act, 1961. It was made mandatory for AY 2012-2013 and subsequent assessment years.
  • All Companies

 

Difference between AY and FY

Financial Year is period between 1st April to 31st March. Assessment Year is the next year in which the income is liable to tax.

For example, if your financial year is from 1 April 2017 to 31 March 2018, then it is known as FY 2017-18. The assessment year for income earned during this period would begin after the financial year ends–that is on 1 April 2018 till 31 March 2019.