Tag Archives: Incorporation of company in India

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Importance of hire Reliable Bookkeeping Services?

Business owners in need of reliable accounting services should ensure to hire accomplished accountants. It is quite easy to obtain bookkeeping services because there are practicing individuals as well as companies. The work demands in your accounting department will determine the kind of professional to be hired. When looking for reliable bookkeeping services Coral Springs FL accountants are obtainable online

 

At Reliable Bookkeeping Services, we look for long term relationships. Bookkeeping is not the most exciting task and bookkeepers also like excitement and once internal bookkeeper learns all about your business, they stop learning and that leads to boredom and resignation. Other factor that may influence them to move on is a better opportunity or less appreciation by business owner.

 

At Reliable Bookkeeping Services, we will never leave our clients alone, as we believe in building business relationships for longer term. We have been serving clients in different industries, we always stay enthusiastic and excited about new challenges and domains we will be working on for them. And we promise you will never be disappointed.

 

An accountant is useful in doing your taxes and giving advice on financial strategies, bookkeepers are more concern with the daily operational costs and the bills your business incurs. That is, bookkeepers are more concern with your payrolls, invoices, utility bills, and other immediate financial concerns that needs your attention whereas accountants are more concerned with your business’ overall financial health.

 

Having a clear picture of your finances is one of the most crucial steps in running a business, no matter how small you might deem it to be. Hiring a bookkeeper can save your from a potential heartbreak of losing the fruits of all your hard work simply because you tried to do everything on your own.

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Union Budget 2017 highlights

Finance minister Arun Jaitley presented the Union Budget 2017 in Parliament on Wednesday. The biggest highlight in the 2017 budget was the slashing of income tax by half for individual tax payers, ban on cash transactions over Rs. 3 lakhs and reduction in holding period to 2 years for capital gains. In this article, we look at the highlights of the 2017 Budget with respect to an Entrepreneur or Business Owner in India.

 

Income Tax
Income tax rate has been slashed from 10% to 5% for individuals who earn between Rs.2.5 lakhs to Rs.5 lakhs. Now after rebates, even a person with a Rs.3 lakhs income could enjoy zero tax liability. Since, proprietorship firms are taxed similar to individuals, micro enterprises having income of less than Rs.5 lakh would enjoy the benefits in tax reduction.

 

Tax Break for Startups
Continuing to build on the 2016 Budget by extending special support for Startups, the Finance Minister has increased the period of profit-linked deductions available to Startups to 3 out of 7 years from the current 3 out of 5 years.

 

Budget 2016-17 kick-started the process. Several deductions were reduced and sunset dates put for others along with reductions in tax rates for some categories of businesses – new manufacturing companies set up after March 2016 were given the option of being taxed at 25 percent provided they did not claim any exemption and companies with turnover less than Rs 5 crore got a 1 percent reduction. However, some new exemptions were given to start-ups, with certain conditions.

This year, admittedly, Jaitley has not moved forward on withdrawing exemptions even as he reduced corporate tax rates.

But let’s look at who has got this benefit: the small and medium enterprises sector. Income tax for companies with an annual turnover of up to Rs 50 crore has been brought down to 25 percent. A big chunk of this lot was paying an effective tax rate of 30.26 percent, while the large companies (turnover above Rs 500 crore) paid an effective tax rate of 25.9 percent. So Jaitley has in a way done the tax equivalent of social levelling. Large companies have not got any tax relief this year.

 

Stimulating Bank Credit
To stimulate bank credit to businesses, various measures have been announced as follows in the 2017 Budget:

  • The allowable provision for Non-Performing Asset (NPA) of Banks has been increased from 7.5% to 8.5% to improve the risk appetite of Banks.
  • In line with the ‘Indradhanush’ mission, Rs. 10,000 crores has been allocated in the 2017 Budget for recapitalisation of Banks.
  • Lending target under Pradhan Mantri Mudra Yojana hase been increased to Rs. 2.44 lakh crores. Priority under the scheme will be given to borrowers from certain backgrounds like Dalits, Tribals, Backward Classes.
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Can a Domain be Trademarked?

The Internet Domain Names have now become much more than mere representing the websites of different companies on the Internet. Today, in this age of well-developed information technology and worldwide businesses through Internet, these domain names have attained the status of being business identifiers and promoters. Since the commercial activities on the Internet are to go on increasing day by day, the importance and usefulness of domain names too, are to be enhanced for the purposes of greater publicity, popularity, and profitability of businesses in all economic sectors. According to Bill Gates, the founder of Microsoft, “Domains have and will continue to go up in value faster than any other commodity ever known to man”. Broadly, the functions of domain names are now quite similar to the functions of a trademark or service mark, for these purposes. Ours this very informative web-article offers rich and hugely beneficial and securing information regarding the registration and protection of the domain names as trademarks, with a view to help and serve people, companies, and professions pertaining to diverse occupational and economic fields.

 

General Rule
Domain names are written representation of an internet address. Hence, it is common for businesses involved in ecommerce to spend significant amount of money for the building of brand name around a domain name. Such businesses or those wishing to trademark a domain name can apply for the same by filling a trademark application as a wordmark. And, it is permisssible under the Trademark Act to allow for a domain name to be trademarked. However, just because a domain is registered does not make the mark eligible for trademark registration. The key test applied by the Trademark Examiner would be whether the wordmark proposed would be liable for registration, not simply, not simply as a domain name.

While processing of the application, the Trademark Registrar would still subject the application to usual criteria and test for registration of trademark. The elements of domain name included as part of the application would be not considered and only the reminder or the distinct part of the mark is considered.

 

What Names Can Be Registered?

Not all domain names can be registered as trademarks. The USPTO is particular about what can be registered as a domain name. For example, you will have a problem registering a generic name like drugs.com as a trademark. And you’d face an uphill struggle to register a domain name that you use solely as an address and not a signifier of services. For example, the law firm of Smith & Jones would have a hard time registering smith&jones.com as a trademark. It would have to prove that the domain is being used for some other purpose than for people to find and contact the law firm.

 

Example
If an application is made for the registration of snapdeal.com or snapdeal.in, the trademark examiner would not consider domain elements like .com or .in and would only consider the word “snapdeal”. If that word passes the normal test for objection like similar or identical trademark exists or other reasons, then the mark is cleared for publising in the Trademark Journal.

Further, in some cases, even words that are not eligible for registration as a word mark may be eligible for registratoin as a domain name, as there is no space in between the words and the addition of .com gives a character to the mark. For example, Fast Forward may not be eligible for trademark registration, but fastforward.com could be eligible for registration.

company formation in india

How to Register Foreign Companies in India

India is one of the fastest growing economies in the world with healthy resources and a large market base. In the past few years, there is a great boost in foreign direct investment in India (FDI) because of the changed regulatory environment in the past few years. Therefore, it is very easy for foreign nationals to start a business in India.

Sometimes people get often confused in “Indian Company” and “Foreign Company”. If a foreign national incorporates a company in India then it is an Indian Company. But when a foreign company set up a branch office in India then it is known as Foreign Company.

Foreign Direct Investment (FDI)

The amount/capital to be invested by any foreign national/NRI shall be classified as FDI in India. In 1990s, there was high number of restrictions on FDI in India where as today, there are amendments in all the rules and regulations of company formation in India.

FDI is classified as

  • Business where FDI is not allowed at all.
  • Business sectors where permission is required from Foreign Investment Promotion Board(FIBP)
  • Business where no permission required.

All foreign nationals/ NRI’s must go through FDI policy before company incorporation in India in order to check any restrictions, prohibition in the proposed business activity

Entry Strategy into Indian Market

A foreign company can commence operations in India by incorporating a company under the companies Act, 1956 through registration of company or establishing a branch or liaison office.

Establishing a private limited company is the easiest and fastest way to set up in India. FDI of up to 100% into a public limited or private limited is permitted under the FDI policy wherein no approval from RBI or central government is required. For the purpose of registration or incorporation, an application has to be filed with Registrar of companies (ROC). For more information please visit http://dca.nic.in.

Other entry strategy as a foreign company is to open a branch office, liaison office and Project Office. In this case, approval from RBI or central government is mandatory. Therefore, the time and money required for setting up a private limited or public limited company is much less than forming such offices.

Requirements for incorporation of company in India

In order to start a company in India, a minimum of two persons and an address are required in India. A company must have a minimum of two directors and   a minimum of two shareholders. According to Indian rules and regulations, one director must be both an Indian citizen and Indian resident.

One should establish a company with three directors which includes two foreign nationals and one local citizen. In this case, 100% of the shares of the Indian company can be held by foreign nationals/ NRI. The address in India is served as the registered office of the company.  Foreign companies establish their offices in metro cities like Delhi, Bangalore, Mumbai and Chennai etc.

Cost for company registration in India

Company formation services in India are inexpensive. The company formation process can be completed within few weeks. The incorporation process can be easy with the help of tax advisors in India. It would cost you some pennies but the whole process will be easy for you.

 

 

 

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How to Register a Trademark in India

When an outsider looks for startup business, the first thing they notice is the trademark. A trademark is  the identity of a business lies. It is the name and symbol under which a business undertakes its trade and commerce, which represents the company.

In India, trademarks are regulated by the Trade Marks Act of 1999. The Act aims to provide registration and better protection towards trademarks while preventing the use of fraudulent marks.

 

How to Choose a “Good” Trademark?

  • The mark(s) should be easy to remember.
  • It should be short and easy to spell and write.
  • It may be aesthetically appealing.
  • It should not ideally be descriptive in its nature.
  • It can be fanciful and coined, to avoid confusion.

 

APPLE/ASUS/DELL/HP/LENOVO” for computers are an example of a non-descriptive and arbitrary mark, which makes for good trademarks.

KODAK” for cameras is a coined term; that also makes a good trademark.

MICROSOFT” for software, “LAKME/AMWAY/AVON” for makeup, are all good examples.

 

How to Apply For a Trademark?

  • Conduct a trademark search that will let you know if there are similar trademarks that are already registered.
  • Apply for a trademark registration. You can do this by yourself through the Government website, or get a lawyer to do it for you. The procedure of application is laid down in the Trade Marks Act, 1999.
  • An application number is allotted for every pending registration, which can be tracked on the website.
  • If the application is accepted, it will be published in the Trademark Journal. If there are no oppositions, your trademark will be registered to you. However, if there are oppositions, there will be a hearing in the Trademark Hearing Office to decide on the final registration of the mark.

 

Benefits of Registering Your Trademark

  • A registered trademark identifies and advertises the good/service.
  • It protects the commercial goodwill of the trader/owner of the trademark.
  • It protects consumers from buying forged or inferior goods.
  • In the case of an infringement of a registered trademark, the owner has the option of civil and criminal remedies. In the case of an unregistered trademark, the only remedy available to the owner is the option of filing a suit of passing off.

 

In India, it is not compulsory to register a trademark. However, there are certain obvious benefits of registration of the same. The benefits are enumerated as above:

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What is LLP in India?

In India a business organization can take many forms such a LLP (Limited Liability Partnership), Private Limited Company, Public Company etc. On 7th January 2009 with assent of the President the Limited Liability Partnership Act, 2008 came into effect. LLP has been a successful business vehicle since then as it combines the benefits of a partnership with that of a limited liability company, making it a lucrative option for start-ups. It keeps personal wealth of partners safe and on the other hand it helps leverage the benefits of a partnership.

In Limited Liability Partnership a partner is not bound by other partner’s acts; it can be due to negligence, misconduct etc. In other words, LLP can also be defined as a corporate entity which combines professional as well as entrepreneur behavior to operate in effective, efficient and flexible manner by providing benefit of limited liability and larger financial resources.

Requirements and Benefits of a LLP

  • Formation of a LLP requires a minimum of 2 partners and at least one of them shall be an Indian resident. Each partner will only be liable to the extent of its capital in the business unless found to have acted with fraudulent intentions and deceiving purposes to cheat creditors.
  • It is a separate legal entity formed under the LLP Act 2008 therefore It shall now possess the power to sue and be sued. Also, both an individual and a body corporate may become a partner.
  • Duties, rights & share of each partner are governed by an agreement among partners or between the LLP and partners subject to the act. Law gives the freedom to formulate the agreement per choice.
  • There is No minimum capital required to form a LLP, moreover creation of a limited liability partnership is inexpensive as compared to other forms of business.
    When paralleled with regular partnership a LLP is a preferred choice of lenders hence making borrowing easier. Also it has less stringent compliance and regulatory requirements making it easier for the business owners to focus on operations.

 

Disadvantages of a LLP in India

  • A Limited Liability Partnership is not allowed to go public this means that it can not be listed on the stock exchange and is not allowed to raise money from the general public.
  • Actions of any partner related to the LLP will have an impact on it and the entity will be legally held responsible for any liabilities thus created.
    Winding up a LLP can be a tedious and expensive task.
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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.