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.

Threshold Limit

Threshold Limit for Tax Audit for the AY 2017-18

Yet tax audits for the AY 2016-17 are on their way and to finish before 30.09.2016 but we need to also keep in mind threshold limit applicable for the AY 2017-18 for compliance and planning purposes. The Finance Act 2016 (applicable for the AY 2017-18) has enhanced the turnover limit from Rs. 1 crore to Rs. 2 crores for assessee’s claiming presumptive taxation benefit under section (u/s) 44AD of the Income Tax Act 1961 (the Act).

This, therefore, created a doubt whether tax audit limit u/s 44AB of the Act is simultaneously increased from Rs. 1 crore to 2 crores or not.

Income tax

The dust is set at rest by CBDT press release dated 20.06.2016 clarifying that higher threshold limit for non-audit of accounts has been given only to assesses opting for presumptive taxation scheme u/s 44AD of the Act. In other words, it means that turnover / total sales / gross receipt level fixed to be greater than Rs.1 crore attracting tax audit provisions u/s 44AB of the Act still prevails but assesses who claim benefit of section 44AD of the Act can avoid tax audit up to the total turnover limit of Rs. 2 crores even.

Above arrangements can be comprehended with the assistance of following cases even:

  • Alpha Pvt. Ltd. having a total turnover of Rs. 125 lacs for the FY 2016-17 needs to get its books audited u/s 44AB of the Act as turnover has exceeded Rs. 1 crore. We all know that company assessee can’t avail benefit u/s 44AD of the Act thus threshold limit of Rs. 1 crore applicable as above.
  • Mohanty and Co. (an organization firm) occupied with exchanging of electronic merchandise having a turnover of Rs. 165 lacs for the FY 2016-17 require not to get its records reviewed u/s 44AB of the Act as its turnover has not surpassed Rs. 2 crores (expecting that firm will offer business salary u/s 44AD of the Act). Be that as it may if the firm selects to be out of possible tax collection conspire u/s 44AD of the Act it needs to get books evaluated u/s 44AB of the Act.
  • Mr. Girraj Malpani, proprietor of Goverdhan Associates having receipts of 137 lacs from commission by way of sourcing insurance and lending arrangements during the FY 2016-17 will need to get his accounts audited u/s 44AB of the Act because assesses earning commission income can’t avail benefit of section 44AD of the Act thus threshold limit of Rs. 1 crore shall be applicable.Credits:  Anoop Bhatia

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Service tax registration 

  • Service tax registration mandatory for revenues > 10 lacs .
  • ST returns to be filed quarterly or half-yearly as per applicability.

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