COMPLIANCES, Corporate
ANNUAL ROC COMPLIANCE OF LLP.
BRIEF ON LLP : The registration of a Limited Liability Partnership (LLP) offers a business structure combining limited liability and partnership flexibility. As a legal entity, it is fully accountable for its assets. Introduced in 2009 under the Limited Liability Partnership Act, it suits small and medium-sized enterprises. Incorporating an LLP requires a minimum of two partners with no upper limit. One partner is not liable for another’s misconduct or negligence. Partner rights and duties are governed by an agreement. An LLP cannot issue equity shares, making it unsuitable for raising equity funds. ABOUT LLP COMPLIANCE The partners in a Limited Liability Partnership (LLP) are responsible for maintaining accurate books of accounts, filing Income Tax returns, and submitting an annual return to the Ministry of Corporate Affairs each financial year. To ensure the smooth continuity of the LLP, returns must be filed periodically to maintain compliance and avoid substantial penalties for non-compliance. Although LLPs have fewer compliance requirements compared to private limited companies, the penalty rates for LLPs are significantly higher. LLPs are not required to audit their books of accounts unless their annual turnover exceeds INR 40 lakh or their capital contributions exceed INR 25 lakh. Therefore, an audit is not mandatory for LLPs below these thresholds BELOW ARE THE REQUIRED PARAMETERS :- Preparation of Books of Accounts Preparation of Financial Statements Audit by Independent Auditor Annual ROC Return Filings Filing of Income Tax Return Maintenance of Statutory Registers
COMPLIANCES, Corporate
ANNUAL ROC COMPLIANCE OF PVT LTD CO.
A Private Limited Company is the most common form of business establishment. Upon incorporation, various company compliances must be adhered to. It is mandatory for a Private Limited Company to file an annual return and audited financial reports with the Registrar of Companies (ROC) for each fiscal year. Regardless of turnover or business status, annual compliance is obligatory for all companies. Continuous failure to file the required compliance documents may result in the company being struck off the ROC register. Benefits of Compliance. Adhering to regular compliance significantly enhances a company’s credibility, as evidenced on the MCA portal. Proper compliance records attract customers, facilitate government tenders, and assist in loan approvals. Investors prioritize financial and compliance records before investing. Therefore, consistently filing annual returns is essential. Non-compliance results in substantial penalties and can harm the company’s profitability and reputation. DOCUMENTS REQUIRED : PAN card of the Company Certificate of incorporation MOA and AOA of the Company Audited financial statements Audit Report and Board Report. DSC of Director
ACCOUNTING AND TAXATION, Corporate
BOOK KEEPING
Bookkeeping involves the systematic recording of a company’s financial transactions into organized accounts on a regular basis. Proper bookkeeping allows companies to monitor financial information, thereby facilitating crucial operational, investment, and financing decisions. Accurate bookkeeping is vital for external stakeholders, including investors, financial institutions, and government entities, who depend on reliable data for informed investment or lending decisions. Furthermore, businesses rely on precise bookkeeping for internal management and to address the informational needs of external users. In summary, effective bookkeeping ensures transparency, supports strategic decision-making, and fosters confidence among investors and other stakeholders. A Major building block to the growth of a Business: Bookkeeping constitutes the foundation of the accounting department within any organization. Its importance to an entity is multifaceted: Creation of an accurate Budget. Keeps yourself prepared for tax returns Maintains organized record Easy to set business targets Government Regulations & Compliance Extra peace of mind Clearer picture for a business
Corporate, REGISTRATIONS
IEC REGISTRATION
In the era of globalization, businesses aim to expand beyond domestic markets, but international ventures require compliance with various procedures and laws, including obtaining necessary registrations and licenses. In India, companies involved in import and export must obtain an Import Export (IE) Code, a unique 10-digit code issued by the Director General of Foreign Trade (DGFT). This code is mandatory for engaging in import and export activities and accessing DGFT benefits. The IE Code is issued within 2-5 working days upon application submission. Benefits of IEC Registration The Importer Exporter Code (IEC) enables international market access, promoting business growth. Benefits from the Directorate General of Foreign Trade (DGFT), Export Promotion Councils, and Customs are available with the IEC, which requires no returns and is valid for a lifetime without renewal. Customs and banks mandate the IEC for clearing imports and facilitating international money transfers. The IEC also allows traders to register with global e-commerce platforms and benefit from government schemes like the Merchandise Export from India Scheme (MEIS) and the Service Export from India Scheme (SEIS). With no post-registration compliance, maintaining the business is straightforward. Additionally, banks require the IEC for exporters to receive foreign currency directly into their accounts. HOW TO APPLY FOR THE ISSUENCE OF IEC CODE : Exporters and importers must file an online application in Form ANF 2A, providing address proof and a pre-printed cheque or bank certificate. All required documents, including bank details and a Digital Signature Certificate (DSC), must be submitted to the Directorate General of Foreign Trade (DGFT). After document and application verification, the Import Export Code (IEC) will be issued as a soft copy. Applicants will receive IEC allotment notification via SMS or email, with a link to download and print the IEC. The IEC profile must be updated annually.
Corporate, REGISTRATIONS
MSME REGISTRATION
MSME Registration, also known as Udyog Aadhar, is a certificate issued by the Ministry of MSME, Government of India, to micro, small, and medium enterprises under the MSME Act 2006. It allows businesses to claim government benefits and access development schemes. The primary objectives of Udyog Aadhar Registration are: BENEFITS OF MSME REGISTRATION Flexibility and Adaptability: MSMEs swiftly adapt to market changes and customer needs, ensuring a competitive edge.Cost Efficiency: Lower operational costs and streamlined processes maintain profitability.Innovation: Small-scale operations foster creativity and innovation, resulting in unique products and services.Customer Relationships: Close customer interactions enable personalized service and loyalty.Community Impact: MSMEs bolster local economies and create jobs, enhancing reputation and community support.Niche Markets: They effectively serve niche markets often overlooked by larger companies. Documents required for MSME registrations as follows : Applicant’s Aadhaar Number Applicant’s PAN Number PAN Card of entity Bank Account details of the entity NIC (National Industrial Classification) Codes of the business activity.
Corporate, REGISTRATIONS
TRADEMARK REGISTRATION
A trademark, encompassing phrases, logos, designs, or color combinations, uniquely identifies and differentiates a brand, product, or service. Globally recognized as valuable intellectual property, a registered trademark protects the brand, grants the owner rights to pursue infringement actions, and prevents unauthorized use. Benefits of Trademark Registration : Indefinite Asset: Trademark registration provides numerous advantages, transforming the trademark into a tradable, franchisable, and licensable intangible asset while safeguarding the company’s goods and services from infringement. Unique Identity: A trademark emphasizes the distinctiveness of a business’s offerings, setting them apart from competitors. Legal Protection: Owners of registered trademarks can enforce their rights against unauthorized use of their logo, brand, or slogan, with registration serving as substantial evidence in legal disputes. Duration of Validity: Registered trademarks are valid for 10 years and require periodic renewal. Requirements For Registering a Trademark – Details of the brand name, logo, symbol, or slogan to be registered– Date of first use of the trademark– Name and address of the trademark owner, including names of all company members if applicable– Completed TM-48 authorization form– Trademark registration fees– MSME or Startup recognition certificate– Partnership firms and corporations can provide MSME or Startup India registration certificates for a 50% fee rebate– Completed TM-A application form
Corporate, STARTUPS
SEC 8 COMPANY REGISTRATION
A Section-8 Company can be registered when its primary purpose is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, social welfare, environmental protection, sports, and research. As a non-profit organization, a Section-8 Company may generate income or profit, but this income must be utilized solely for advancing its objectives, rather than being distributed to its promoters. Consequently, organizations aiming to work for charitable purposes and non-governmental organizations (NGOs) are required to obtain Section-8 Company Registration. Benefits of Section 8 Company : NGOs registered under Section 8 receive numerous benefits and advantages under Company Law to promote overall economic and social development. – Advantages and exemptions under company law include:– Exemption from the Companies Auditors Report Order– No minimum paid-up capital requirement– Registered partnership firms can be Section 8 Company members– Eligibility for:– Government funds– CSR funds– Private donations– Tax deductions for donors under Section 80G of the Income Tax Act– Preference for national NGOs over state-registered NGOs
