Most Start-up companies invariably face the problem of not being able to reach out to the experts for certain services required for their business.
We at SGA, provide Start-up Services, as a single window solutions for incorporating the company and start-up advisory services.
Our team of experts includes experienced professionals who are trained in different services like Incorporation of a company, Statutory registrations, Legal Assistance, Taxation, Accounting and Finance, Outsourced CFO services, Secretarial Compliances, Payroll, Virtual office space.
Also We at SGA , offer our professional expertise to domestic and foreign investors & companies for setting up their businesses in India . We not only advise you about the foreign investment policy & procedures of the Government of India but also obtain all the necessary approvals required.
A foreign company can commence operations in India by incorporating a company under the Companies Act, 2013 through:
Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:
Foreign equity in such Indian companies can extend up to 100% depending on the equity caps in respective sectors and areas of activities as per the regulations prescribed under the Foreign Direct Investment (FDI) policy in place on the date of investment. Basically Reserve Bank of India through its Foreign Direct Investment Policy has two routes. One is an Automatic Route and other is a Prior Approval of FIPB Route. SGA, can assist in understanding the details of the FDI policy, sectoral equity caps & procedures on a specific request.
Such offices can undertake any permitted activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.
Liaison office acts as a channel of communication between the principal place of business or head office and entities in India . Liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India . Its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. It can promote export/import from/to India and also facilitate technical/financial collaboration between parent company and companies in India . Approval for establishing a liaison office in India is granted by Reserve Bank of India (RBI).
Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India . RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.
Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes:
A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).
We provide complete, online back office operations. From book-keeping to pay roll payroll processing, audit and assurance services and business enterprise services which includes all the statutory compliances required by a company in India. Opening Bank Account Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided by SGA.
Companies in India are required by law to place on public record their statutory annual accounts, which must be audited. These must comply with a range of disclosure requirements set out in the Companies Act, 2013. SGA, ensure that all disclosure requirements are met, and are authorised to carry out independent statutory audits. Our approach to audit concentrates effort where it's most needed, keeping costs to a minimum and providing a useful management tool. Our advice isn't just an annual event but clients rely on our experience all year round. As your profits grow, we advise on corporate tax planning and compliance. Whenever cross border / intra group transactions arise, the difficult issue of transfer pricing is never far behind. We can help you to determine fair prices and ensure that the documentation required by the tax authorities is in place. Financial and tax planning for business owners and key employees is just as important to maximise your financial growth and minimise tax bills.
Our service list allows you to pick and choose to specifically match your needs. Our outsourcing capability allows you to achieve India fiscal compliance cost-effectively. We look after the peripheral issues leaving your company time to concentrate on what's really important: succeeding in the India .
Companies incorporated or registered in India are governed by the Companies Act 2013.
The memorandum and articles are the primary legal document of a company. Memorandum contains the name of the company, authorized share capital, initial members and object clause. Articles are a set of internal regulations that govern the day to day operations of the company. Both memorandum and articles have to be filed with Registrar of companies at the time of incorporation or if there are any changes thereafter. At least two subscribers (shareholder) are required in the memorandum and each of the subscriber must subscribe to at least one share in the company.
Shares must be expressed in a fixed amount. Shares to be subscribed must be expressed in Indian rupees.
An annual general meeting (AGM) must be held once in every financial year and not more than 6 months after the end of financial year. However, a company can hold its first AGM until 18 months from its incorporation.
The names and personal particulars of the directors and secretary, register of charges, share capital, registered office address etc. must be filed with the Companies Registry.
Every company is required to appoint an auditor each year at its AGM. An auditor must be qualified by virtue of the Institute of Chartered Accountants of India Act 1949 and completely independent of the company. Audited accounts of the company serve as tool for various stakeholders like creditors, bankers, investors and revenue authorities.
A basic difference between an LLP and a company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 2013) whereas for an LLP it would be by a contractual agreement between partners.
The government has waived the tax that would have been paid on investments in qualifying startups that were more than their fair market value. ... Additionally, investments made by incubators in excess of fair market value are excluded from taxation.
Income Tax is levied on the income as per the below-mentioned schedule of Taxes.
Type of Business Entity Income and its Tax applicable
Proprietorship/ Individual As per Income Tax Slab Rates
Partnership/ LLP Firm - 30% of Income
Indian Company - 25% of Income
The qualifying period has been extended until the end of March 2022, thanks to Budget 2021. Startups in this category would be entitled to a tax credit of 100 percent on profits for three years in a block of seven years, provided that their annual revenue does not exceed Rs. 25 crores in any one financial year during that time.
Only if a startup meets the requirements of an "Eligible Startup" can it use all of the tax incentives available to it.
Exemptions from SECTION – IAC- Eligible startups may claim up to 100% of profits and gains for three consecutive years during a 10-year period, provided that the company's annual revenue does not exceed 100 crores in any of the prior financial years.
This tax is referred to as the Angel tax. However, the government has exempted all government-recognized companies from the Angel tax with the latest announcement. Entrepreneurs may now save money on taxes and use it for funding by using this area.
Numerous startups are in the service business, which means they are subject to service tax. They may offset the VAT paid on purchases (say, office supplies) against the service tax on their sales under the GST scheme, something they cannot do under the existing structure. As a result, it will significantly boost the startup business, which is mainly focused on offering services. It will result in cost savings, hence improving working capital for cash-strapped firms.
This plan was open to startups that were established between April 1, 2016, and March 31, 2021. Starting in the first year, such companies would be entitled to a tax credit of 100 percent on profits for three years in a block of seven years, provided that their annual turnover does not exceed Rs. 25 crores in any financial year.
The expenditures associated with forming an LLC are tax-deductible, but you must be aware of critical limitations, exclusions, and guidelines in order to deduct these costs legitimately.
The Internal Revenue Service (IRS) imposes restrictions on the number of deductions available for LLC starting fees.
If your beginning expenditures are less than 50,000, you may deduct up to 5,000 for initial organizational costs.
Sachin Gujar & Associates,
Chartered Accountants
47/22, Erandwana, Law College Road,
Ekta Apts, 3rd Floor, Above Nirmitee Furniture,
Pune - 411004
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