How to register a Startup in India

Startup registration: Procedures

Startup registration Procedures

There are 5 sorts of organizations that can be enrolled in India

  • Sole Proprietorship Company
  • Organization Company
  • One Person Company
  • Constrained Liability Partnership
  • Private Limited Company
  • Sole Proprietorship Company

This is the most effortless approach to begin a business in India. At the point when the business is claimed and overseen by a solitary individual Sole Proprietorship Company might be shaped. A business can be up and running in this arrangement inside 15 days

There is no different enrollment required for Sole Proprietorship firm. Duty and other obligatory enlistments like VAT, Service Tax, Professional Tax, Shops and Establishments Registration, and so on., will guarantee the presence of this firm

Partnership Firm

A General Partnership is a business structure in which at least two people oversee and work a business as per the terms and goals set out in the Partnership Deed. The Partnership Company could conceivably be enlisted under Indian Partnership firms Act-2003.

Partnership firm in India

The Partnership deed must be imprinted on a Stamp Paper and must be legally approved. After this, an application is to be made to enlistment center of Firms of the state to get enrolled. The enlistment center of firms acknowledges the demand and apportions an enrollment number to the firm.

This enlistment should be possible whenever i.e. either at the season of beginning the organization or amid the continuation of the operation of the organization

Points of interest of Registering a Partnership Firm

  • The Partner of the enlisted Partnership firm can record a body of evidence against the firm or different accomplices of the firm
  • Body of evidence can be recorded against Third Party by having the organization firm as one of the Parties

One Person Company

One Person Company is the change over Sole Proprietorship firm which gives finish control to one originator and gives an advantage of Limited Liability to the author.

OPC is enlisted with Registrar of Companies (RoC) under Ministry of Corporate Affairs (MCA)

Limited Liability Partnership

LLP is a noteworthy change on Partnership firms, which give Limited Liability to the Partners included and furthermore it has lesser compliances contrasted with a Pvt Ltd Company since the working of an LLP is exclusively subject to the Partnership deed that is drafted between the accomplices and is recorded with RoC.

Private Limited Company

Private Limited Company

Private Limited Companies are the most favored alternative for any startup that is taking a gander at scaling up by outside subsidizing as it is simple in Private Limited Company to issue new value partakes in lieu of financing got.

IT returns deadline

IT returns deadline extended

 On Monday The income tax (IT) department extended the deadline for e filing of returns by five days, till August 5, after complaints were received that assessees were not able to submit returns.

 

The department had earlier ruled out extending the deadline for filing returns.

IT Filing Date Extended

The department also eased the time frame for linking permanent account number (PAN) with Aadhaar by August 30. Assessees can for now simply quote their Aadhaar number or enrollment ID. In view of the difficulties faced by taxpayers,

 

In view of the difficulties faced by taxpayers, date for efiling of income tax returns for FY 2016-17 has been extended to August 5, 2017.

 

Last minute inundation and heavy traffic on the website of the E-filing portal led to the extension.

 

Assessees, particularly those with some discrepancies in their name or year of birth, or any other data on their Aadhaar and PAN cards, were not able to submit returns.Besides, it was reported the site was down for awhile.
Some people for whom PAN and Aadhaar data was not matching had problems and could not file returns.
IT Filing Last Date

Complaints From  Tax Payers

The department said there were some complaints that the taxpayers were not being able to log on to the filing website or link their Aadhaar with PAN because their names on the permanent account number and Aadhaar databases were not matching.
While technical snags have been removed, the main reason for the login failure was because of last minute rush and panic.

 

To ease out the panic situation, the department said it would be sufficient as of now to quote the Aadhaar or acknowledgment number for having applied for Aadhaar for the filing of returns.
The actual linking of PAN with Aadhaar can be done subsequently, anytime before August 31, 2017, it said.
However, the returns will not be processed until the linkage of Aadhaar with PAN is done.

GST : Input credit to reduce prices in the long run

 GST will have a positive impact on India’s growth

The new tax regime addresses the issues of
  • The multiplicity of taxes,
  • Higher compliance costs &
  • Improving the overall investment climate
Billed as India’s biggest reform independence tax since in 1947, GST replaced more than a dozen federal and state levies and was initiated with an intention to unify the country into a single market. However, nearly a month on, many are finding that doing business is quite complicated now.
Input credit
For the common man, the impact will be seen in the form of slightly higher fees for banking transactions like funds transfer and ATM transactions as these have been put under the 18 per cent tax bracket in the new GST regime, from the earlier 15 per cent.Nevertheless, it is expected that GST will have a positive impact on India’s growth and would reduce the prices in the medium and long term.

A Month after Implementation

It is almost a month since GST was rolled out. Broadly speaking, it is going to impact in the following way:
Broadly speaking, it is going to impact in the following way:
  • Unified tax system across the country.
  • Built-in management information system (MIS) in the form of monthly return to know the movement of goods and services from one hand to another.

Minimize tax evasion with the help of such MIS.

Increase government revenue thereby creating resources for more development related work.
Of course, in the short term, it might affect the businessmen, general public and others, especially the lower section of the economic system which is not yet aware of the importance of record keeping. However, it needs to be remembered that Input Credit system in GST is extremely important and its benefits should be passed on by each business units to its customers, be it B2B or B2C.
Till now, financial services companies could not claim the input credit for VAT, CST, Octroi, and entry tax paid on their procurements.Under GST, financial services companies can claim input tax credit for all these taxes. It may take some time to become aware of how the Input Credit system works and how it is going to dilute the increase in cost due to GST.

INCREASE IN COMPLIANCES

Currently, financial services companies file centralized service tax returns twice per year irrespective of a number of branches in different states.
But now they have to file minimum three returns per month per state.
Also, according to the GST law, bill of supply is to be compulsorily issued in the case of exempt supplies i.e. interest income in case of banks and nonbanking financial companies. In the tax system that existed before GST, production of goods was taxed and the rates were high.
Moreover, tax on tax adds to the cost build up. With GST, overall taxes on goods getting down making them cheaper.
Certain essential items such as raw food articles are not taxed at present and this is expected to continue.
One of the major concerns about GST that is being discussed in some section is about the difference in GST rates as compared to other countries in the world.
Here too, it might be noted that each and every country has a different geographical environmental situation and they differ culturally too. As such, the rate is going to be different according to various circumstances prevailing in each country.
It is quite possible that there might be some teething troubles too, which does not necessarily prove that such a new concept is not practical viable. In the implementation of GST too, the government is monitoring the practical issues and taking necessary corrective actions.
However, one can only conclude that GST is here to stay and in the long run, an effective and good tax regime is what India needs to address the issues of the multiplicity of taxes, higher compliance costs, and improving the overall investment climate in the country.