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Sole Proprietorships have minimum compliance as this firm is identified by its government and tax registrations. Therefore, the degree of its agreement is confined to the yearly filing of the service, sales or professional taxes.
Any sole proprietorship is simple to begin. One needs to simply have a GST Registration in place. Hence, the procedure is not complicated. Therefore, the sole proprietorship business can be set up in 15 days with the help of a PAN card for identity and proof of address.
When compared to an OPC or One Person Company, a Sole Proprietorship is economical due to its minimum compliance requisites. Even in the long-term perspective, it is still inexpensive. It works out much cheaper because one would not need to hire an auditor. One of the main reasons why small merchants and traders choose it.
Partnership firm comes into existence based on an agreement between two or more partners agree to undertake the business. The terms and conditions that govern such a partnership are outlined in a document known as the Partnership Deed.
The Partnership form of business activity can be formed only on the basis of the existence of business activity. The business can be anything and include any trade, industry or profession.
Partners are entitled to share the profits as well as bear the losses if any in the course of business.
All partners or anyone partner acting on behalf of others can undertake partnership business. This means each partner is a principal in himself who can act in his own right. Further, he can also act on behalf of other partners by acting as their agent.
Each Partner is personally liable for all losses arising in the course of business. That is to say, their personal assets can be used to pay off the outstanding debts of the partnership firm.
Each partner is entitled to participate in the day to day operations of the business. However, it is not mandatory for each partner to participate in the day-to-day operations of the business. But, partners running the business need to take consent of other partners for making the requisite decisions.
A partner cannot transfer his share to any other person. He may, however, do so on the consent of other partners.
It is not mandatory to register the partnership form of entity. However, the partners can choose to register the firm with the Registrar of Firms.
The partnership Firm may continue as long as the partners wish to do so. However, as per law, the partnership can come to an end if any of the partners dies, retires or becomes insolvent. But, the remaining partners can continue doing business under the same name after sorting out the due share of the outgoing partner.
General Details
Specific Details
We have to prepare the following documents which are required to be submitted to the ROC:
LLP is a separate legal entity from the co-workers. Each associate can sue the other in case a situation occurs. It has an unbroken existence that follows regular succession, i.e., the partners might leave, but the company remains. A term of resolution has to be mutually agreed on for the firm to dissolve.
Transferring the title of LLP is also simple. A person can quickly be inducted in as a nominated partner and the ownership switches to them.
LLPs having a capital amount of fewer than 25 lakhs and turnover below 40 lakhs per year do not need any formal audits. It makes the listing as LLP useful for small companies and startups.An LLP can own or take property because it is identified as a juristic person. Associates of LLP cannot claim the property as theirs.
An LLP has associates, who own and operate the business. This is different from a private limited company, whose executives may be different from stockholders. For this reason, VCs do not invest in the LLP structure.
The method of LLP registration in India does not require much legwork when it comes to documents.
To Be Submitted By Partners
Note : Any one of the partners must self-attest the first three documents. In the case of foreign nationals and NRIs, all the documents must be notarized (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
For The Registered Office
Note : Your registered office need not be a commercial space; it can be your residence, too.
Any business who has :.
The LLPs will also be permitted to opt for downstream investment in a different company or even choose LLP in those sectors which allow 100% FDI following the automatic route. This does not come up with any performance constraints that are FDI linked.
Members : To start a company, a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the Companies Act, 2013.
Limited Liability : The liability of each member or shareholders is limited. It means that if a company faces loss under any circumstances then its shareholders are liable to sell their own assets for payment. The personal, individual assets of the shareholders are not at risk.
Perpetual succession : The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members. This leads to the perpetual succession of the company. The life of the company keeps on existing forever.
Index of members : A private company has a privilege over the public company as they don’t have to keep an index of its members whereas the public company is required to maintain an index of its members.
A number of directors : When it comes to directors a private company needs to have only two directors. With the existence of 2 directors, a private company can come into operations.
Paid-up capital : It must have a minimum paid-up capital of Rs 1 lakh or such higher amount which may be prescribed from time to time.
Prospectus : Prospectus is a detailed statement of the company affairs that is issued by a company for its public. However, in the case of a private limited company, there is no such need to issue a prospectus because this public is not invited to subscribe for the shares of the company.
Minimum subscription : It is the amount received by the company which is 90% of the shares issued within a certain period of time. If the company is not able to receive 90% of the amount then they cannot commence further business. In the case of a private limited company, shares can be allotted to the public without receiving the minimum subscription.
Name : It is mandatory for all the private companies to use the word private limited after its name.
The requirements for private limited company registration are:
Members : A minimum number of two and a maximum number of 200 members or shareholders are required as per the companies’ act 2013 before registration of the company.
Directors : A minimum number of two directors is required for registering the private limited company. Each of the directors should have DIN i.e. director identification number which is given by the ministry of corporate affairs. One of the directors must be a resident of India which means he/she should have stayed in India for not less than 182 days in a previous calendar year.
Name : It is one of the major components of a private limited company. The name of the company contains three parts i.e. the name, the activity, and private limited company. It is necessary for all private companies to use the word private limited company at the end of its company name. Every company has to send 5-6 names for approval to the registrar of the company and all the names should be unique and expressive. The name for approval should not resemble any other companies name. So choosing the right company name is an important component is it will stay with the company throughout its life.
Registered office address : While going for the registration of the company, the owner should provide the temporary address of the company until it does not get register. However when the company has been registered then the permanent address of its registered office should be suited with the registrar of the company. The Registered office of the company is where the company’s main affairs are been conducted and where all the documents are placed.
Obtaining a digital signature certificate : In today’s modern world everything is done online. All documents are submitted electronically and for that, every company must obtain a digital signature certificate which is used to verify the authenticity of the documents. A digital signature is obtained by all the directors which are marked on all the documents by every director.
Professional certification : In a company there are many professionals which have required for many purposes. For incorporating a private limited company certification by these professionals are necessary. Various professionals such as company secretary, chartered accountant, cost accountant, etc are required to make their certification at the time of company incorporation.
Ownership : In a public company, regulation and ownership of shares can be sold to the public on an open market. On the other hand, in a private company, shares can be sold or transferred to other people by the choice of the owner. Shares of such companies are owned by founders, management or a group of private investors. Shares here are not sold in the open market. Thus there will be fewer shareholders. This means less complexity and confusion in decision making and management.
Minimum Number of Shareholders : For a private company, a minimum number of required shareholders is 2, whereas, for a public company, you require a minimum of 7 shareholders.
Legal Formalities : Legal formalities are sometimes very expensive and time-consuming, aren’t they? If you’re planning to start a public company, you better be prepared because there is a long list of legal formalities for forming a public company. Private companies have a comparatively shorter list.
Disclosing Information : A public company is required to disclose their financial reports to the public every quarter, as it will affect public investment; private companies are not subjected to any such compulsion.
Management and Decision Making : Management and decision making becomes more complex and confusing in public companies as more number of shareholders is to be consulted. This complex procedure is eliminated in a private company as the number of shareholders is less.
Focus of Management : Managers of Public companies are focused on increasing the value of shares, whereas managers of the private company are more flexible in the short term and long term business decisions.
Stock Market Pressure : Private companies are not pressurized by the stock market and you don’t have to worry about shareholder expectations and interference as long as they work within the law. Shareholders in public companies are focused on current earnings and they exert pressure on the company to increase earnings.
Long Term Planning : Managers of public companies are pressurized to increase earnings in the short term in order to increase the value of their stock. Private companies can focus on long-term earnings as such pressure is eliminated.
Minimum Share Capital : You will be needing a lot of money for a public company. A public company requires a minimum share capital of Rs. 5,00,000. For a private company, the earlier minimum number of the share capital was Rs. 1,00,000, but now there is no such minimum compulsion. Therefore there is no pressure of fund requirements.
Confidential : It is obviously not appropriate, for competitors to know about your business secrets. Confidential information such as executive compensation, legal settlements, and other essential information cannot be kept reserved in public companies. Such information is more secure in a private company.
Therefore, a Private Limited Company is less complicated compared to a Public company. It is comparatively less expensive and less time-consuming.
Directors : As per the provisions of the Companies Act, 2013 to start a public limited company, a minimum of 3 directors are required and there is no restriction on the maximum number of directors.
Limited Liability : The liability of each shareholder is limited. In simple words, a shareholder of a public limited company isn’t personally responsible for any loss or debts of the company for any amount greater than the amount invested by them; contrary to partnerships and sole proprietorships, where the partners and business owners are jointly and severally liable for the debts of the business. However, this characteristic of a public limited company does not offer immunity to the shareholders. The shareholders will be held responsible for their illegal actions.
Paid-up capital : A public limited company is required to have a minimum paid-up capital of Rs 5 lakh or such higher amount as prescribed under the act.
Prospectus : A prospectus is a comprehensive statement of the affairs of the company issued by a public limited company for its public and there is a requirement under the Act for public limited companies to issue a prospectus. However, there are no such provisions for Private Limited Companies. This is because private limited companies cannot invite the public to subscribe for their shares.
Name : It is a compulsory requirement under the Companies Act, 2013 for all the public companies to add the word ‘limited’ after their name.
There are various rules and regulations prescribed under the companies act, 2013 for the formation of a public limited company. Here is what you should keep in mind when registering a public limited company:
Following are the advantages of forming a public limited company:
If a company contravenes any of the provisions of the rules the company and every officer of the company who is in default shall be punishable with fine which may extend to Rs.5,000/- and where the contravention is a continuing one, with a further fine which may extend to Rs.500/- for every day after the first during which the contravention continues.
While some critics frown on the use of government funding for public housing assistance, the Section 8 program has its advantages :
To incorporate a Section 8 company a minimum of two persons are required over the age of 18 years with at least one person being an Indian citizen and resident.
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PAN Card is important for taxpayers as it is necessary for all financial transactions and is used to track the inflow and outflow of your money. It is important when paying income tax, receiving tax refunds, and receiving communication from the Income Tax Department. The Indian Budget 2019 proposed that individuals who do not have a PAN can use their Aadhaar number to file returns and for any other purpose where PAN was earlier mandatory. This means that if you have not linked your PAN with Aadhaar yet, or do not have a PAN but have an Aadhaar, you don't have to either link PAN and Aadhaar or apply for a new PAN. However, the rules about this are still in the process of creation/update/approval. That said, PAN continues to be necessary for a large number of monetary transactions. PAN Card also serves as a proof of identity.
JeevanPramaan is a biometric enabled digital service for pensioners. Pensioners of the Central Government, State Government or any other Government organization can take benefit from this facility. JeevanPramaan is a biometric enabled Aadhaar-based Digital Life Certificate. JeevanPramaan scheme enables the pensioner to generate a digital life certificate using a software application and secure Aadhaar based Biometric Authentication System.
Digital Life Certificate for Pensioners Scheme of the Government of India known as Jeevan Pramaan seeks to address this very problem by digitizing the whole process of securing the life certificate. It aims to streamline the process of getting this certificate and making it hassle-free and much easier for the pensioners. With this initiative, the pensioner's requirement to physically present himself/herself in front of the disbursing agency or the certification authority will become a thing of the past hugely benefiting the pensioners and cutting down on unnecessary logistical hurdles.
For obtaining a life certificate, a pensioner earlier needed to present himself/herself before the Pension Disbursing Agency or had the life certificate issued by authority where they served and had it delivered to the disbursing agency. This very requirement of personally being present in front of disbursing agency or getting a life certificate often became a major hurdle in the process of seamless transfer of pension amount to the pensioner. It was noted that it causes a lot of hardship and unnecessary inconvenience particularly for the aged and infirm pensioners who cannot always be in a position to present them in front of the particular authority to secure their life certificate.
In addition to this a lot of governments employees post their retirement choose to move to different location either to be with their family or other reasons, hence causing a huge logistical issue when it comes to accessing their rightful pension amount.
External website that opens in a new window seeks to ease this very problem by digitizing the whole process of securing the life certificate. It aims to streamline the process of getting this certificate and making it hassle free and much easier for the pensioners. With this initiative the pensioners requirement to physically present him or herself in front of disbursing agency or the certification authority will become a thing of the past benefiting the pensioners in a huge way and cutting down on unnecessary logistical hurdles.
To bring down the healthcare budget of every citizen of India through providing Quality generic Medicines at Affordable Prices
The normal working hours of JAS are 8 Am to 8 pm.
All therapeutic medicines are made available It also sell allied medical products commonly sold in chemist shops
OTC (Over-the-counter) products can be purchased by any individual without a prescription. A prescription from a registered medical practitioner is necessary for purchase of schedule drugs.
The quality, safety and efficacy of medicines are ensured by getting each batch of medicines procured from CPSUs as well as private suppliers tested from NABL approved laboratories and conforming to the required standards before the same are supplied to Super stockiest /Jan Aushadhi Stores from the Warehouse of BPPI.
Financial support available for Jan Aushadhi Store (JAS) store owner
BPPI (Bureau of Pharma Public Sector Undertakings of India) will provide one time financial assistance up to Rs. 2.50 lakh as per details given below :
Jan Aushadhi stores established anywhere else by private entrepreneurs institutions / NGOs / Trusts / Charitable organizations which are linked with BPPI headquarters through internet.
Buy Online : Under the GEM portal, Government officials can search and procure almost all goods & services on the GeM portal and can enjoy Flipkart & amazon like online buying experience.
Transparency : On the GEM portal, there is much clarity, effectiveness, and activity in the acquisition of stocks which means that there’s fair trade.
Demand aggregation : The demand aggregation feature further helps government departments to explore and compare more buyers for procuring the desired goods based on the lowest price and product specification.
Less Approval : With initial and subsequent users facility under buyer GeM enrollment, government officials do not need approval every time placing an order from the GeM portal.
State Governments or any organization / reputed NGOs / Trusts / Private hospitals / Charitable institutions / Doctors / Unemployed pharmacist/ individual entrepreneurs are eligible to apply for new Jan Aushadhi stores. The applicants shall have to employ one B Pharma / D Pharma degree holder as Pharmacist in their proposed store.
It is a voluntary and contributory pension scheme, under which the subscriber would receive the following benefits :
Minimum Assured Pension: Each subscriber under the PM-SYM, shall receive minimum assured pension of Rs 3000/- per month after attaining the age of 60 years.
Family Pension: During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension. Family pension is applicable only to spouse.
If a beneficiary has given regular contribution and died due to any cause (before age of 60 years), his/her spouse will be entitled to join and continue the scheme subsequently by payment of regular contribution or exit the scheme as per provisions of exit and withdrawal.
Below are the eligibility of the PMSYM Yojana :
Support in trade : All Government agencies including Central, State Government, and PSUs have to fulfill their purchase conditions only through sellers listed under the GEM portal. GEM listing has a great avenue for private corporations' business growth.
Direct Government Procurement : Traders can sell their products of value up to Rs.50,000/- at reasonable prices direct to the government buyers.
Special Benefits for Startups : There is an opportunity for GEM registration as a startup on the GEM portal having diverse and innovative results. The government has informal norms to procure goods from new Startup participants.
Less paperwork : There is the least paperwork required to obtain GEM registration. Moreover, there is an accessible, easy and clear process for tender allotting under the GEM portal.
Transparency : With the online GEM portal- transparency, effectiveness, and speed have been enhanced during the procurement of required goods and services.
Medicare or medical costs are rising year on year. Inflation in medicare is higher than inflation in food and other articles. While inflation in food and clothing is in single digits, medicare costs usually escalate in double digits.
For an individual who hasn’t saved that much money, arranging for funds at the eleventh hour can be a task. This is particularly daunting for seniors, given that most ailments strike at an advanced age.
One way to provide for health-related / medical emergencies is by taking health insurance. Health insurance offers considerable flexibility in terms of disease/ailment coverage. For instance, certain health insurance plans cover as many as 30 critical illnesses and over 80 surgical procedures. The insurance plan disburses the payment towards surgery/illness regardless of actual medical expenses. The policy continues even after the benefit payment on selected illnesses.
With health insurance, you are assured of a more secure future both health-wise and money-wise. This makes health insurance policies critical for individuals, especially if they are responsible for the financial well-being of the family.
Cashless Treatment : If you are insured, you can get cashless treatments as your insurance company would work in collaboration with various hospital networks.
Pre and post hospitalization cost coverage : Insurance policy also covers pre and post-hospitalization charges up to the period of 60 days, depending on the insurance plans purchased.
Transportation Charges : Insurance policy also covers the amount paid to ambulance towards the transportation of insured.
No Claim Bonus (NCB) : This is the bonus element which is paid to the insured if the insured does not file a claim for any treatment in the previous year.
Medical Checkup : Insurance policy also provide options for health checkups. Free health checkup is also provided by some insurers based on your previous NCBs.
Room Rent : Insurance policy also covers room expenses depending on the premium being paid by the insured.
Tax Benefit : Premium paid on Health insurance is tax-deductible under section 80D of the Income Tax Act.
Canceled Trips
Trip Cancellation Coverage reimburses you for pre-paid, non-refundable expenses if you need to cancel your trip before you depart.
Insurance companies provide a list of covered reasons for trip cancellation, an overview of typically covered reasons is below
Covered reasons to cancel your trip:
Medical Expense Coverage will cover you for accidents and emergency medical and dental care when you travel abroad.
Even if you are covered for basic emergency care overseas (again, a big IF), your current health insurance provider will almost certainly NOT pay to evacuate you and repatriate you back
Emergency Evacuation Coverage will pay for emergency evacuation expenses such as airlifts and medically equipped flights back home and oftentimes will transport you to the hospital of your choice for care. Evacuation expenses can be devastating.
These coverage are for the “smaller things” that are nice to have. Again, the list is not complete but it will give you an idea of some additional coverages :
Travel insurance can also provide coverage for:
Unsecured personal loans : this loan isn’t backed by collateral, such as your home or car, making them riskier for lenders. Approval and the rate you receive on an unsecured personal loan are mainly based on your credit score.
Secured personal loans : These loans are backed by collateral, which can be seized by the lender if you default on the loan. Rates are typically lower than unsecured loans.
Fixed-rate loans- your rate and monthly payments stay the same for the life of the loan. Having a fixed rate makes it easier to budget, as you don’t have to worry about your payments changing
Variable-rate loans : Interest rates on variable-rate loans are tied to a benchmark rate set by banks. A variable-rate loan can make sense if your loan carries a short repayment term, as rates may rise but are unlikely to surge in the short-term.
Debt consolidation loans : This type of personal loan rolls multiple debts into a single new loan. Consolidating also simplifies your debt payments by combining all debts into one fixed, monthly payment.
Co-sign loans : This loan is for borrowers with thin or no credit histories who may not qualify for a loan on their own. A co-signer promises to repay the loan if the borrower doesn’t, and acts as a form of insurance for the lender.
A personal line of credit- A personal line of credit works best when you need to borrow for ongoing expenses or emergencies, rather than a one-time expense.
The general criteria include your age, occupation, income, capacity to repay the loan and place of residence. To avail of a personal loan, one must have a regular income source, whether you are a salaried individual, a self-employed business person or a professional. An individual's eligibility is also affected by the company he is employed with, his credit history, etc.
Certified copies of degree/license (in case of self-employed individuals)
Aarehsree Works Pvt. Ltd. is a promising service providing a company that carries the trust of its clients. it has not only excel in the field of excellence but has also proved itself as one of the major service providing company in pan India and also in foreign lands. By joining our company you not only get the chance to work with one of the leading companies but also you get all the work done at ease. Our well-qualified technical team provides the best hassle-free service.
Kind of property : You can mortgage a self-occupied house as well as a rented residential property or it can be a piece of land that you own. However, it is necessary that the property is free from any kind of mortgage of litigation. Basically, the title of the property should be clear.
Simple approval process : The process of approval for availing a LAP is comparatively simpler. Since these loans are secured, the scrutiny a loan application goes through is relatively lighter. This is opposed to unsecured business loans, where the risk factor is greater due to the absence of collateral. Hence the screening process for the latter is elaborate and time-consuming. In the fast-changing world of business, opportunities are short-lived. The relatively simpler and quicker loan approval process often proves crucial in allowing a business owner to take advantage of a market opportunity.
Lower interest rates : Since LAP is a secured loan, the interest rates are generally lower, when compared to various other types of loans available in the market. For a borrower with a favorable credit score and borrowing history, the low-interest LAP can prove to be the instrument of choice for meeting a wide range of financing requirements.
Flexible repayment tenure : A LAP comes with flexible repayment tenure, lasting anything between 10-15 years or even 20 years in case the loan amount is high. This gives the borrower plenty of time to repay the amount and thus reducing any unnecessary financial burden on his venture.
Moreover, the borrower gets the option of repaying their debt through equated monthly installments, or as overdrafts. The borrower’s credit score and account history, along with the value of their property, determines the overdraft limit.
Continuous ownership : In LAP the borrower continues to retain the ownership of the property. So, if the borrower is unable to repay the amount for any reason, they have the option to sell the property and settle the loan.
Pre-closure : LAP comes with an option to pre-pay the loan amount without penalties, except if the loan was on a fixed interest. This means that the overall interest burden and the tenure of the loan can be reduced by paying a small additional cost.
Optimum use of a property : Loan against property helps in unlocking the hidden value of a property. In case a borrower needs funds and he has a property to offer as collateral, he may consider leveraging the value of the property to satisfy his financial needs.
That way, the borrower can retain ownership of the property and can still secure a loan at a comparatively low rate of interest.
You are eligible if you are:
For Salaried :
For Self-Employed :
Aarshree Works Pvt. Ltd. It is a promising service providing a company that carries the trust of its clients. it has not only excel in the field of excellence but has also proved itself as one of the major service providing company in pan India and also in foreign lands. By joining our company you not only get the chance to work with one of the leading companies but also you get all the work done at ease. Our well-qualified technical team provides the best hassle-free service.
Digital Signature Certificates help authenticate the personal information details of the individual holder when conducting business online.
Reduced cost and time : Instead of signing the hard copy documents physically and scanning them to send them via e-mail, you can digitally sign the PDF files and send them much more quickly. The Digital Signature certificate holder does not have to be physically present to conduct or authorize a business
Data integrity : Documents that are signed digitally cannot be altered or edited after signing, which makes the data safe and secure. The government agencies often ask for these certificates to cross-check and verify the business transaction.
Authenticity of documents : Digitally signed documents give confidence to the receiver to be assured of the signer’s authenticity. They can take action based on such documents without getting worried about the documents being forged.
Individuals and entities who are required to get their accounts audited have to file their income tax return compulsorily using a digital signature. Furthermore, the Ministry of Corporate Affairs has made it mandatory for companies to file all reports, applications, and forms using a digital signature only.
Under GST also, a company can get registered only by verifying the GST application through a digital signature. The use of a digital signature is necessary even for filing all applications, amendments and other related forms.
The Controller of Certifying Authority to issue digital signatures in India has authorized eMudhra as one of the certifying authority for issuance of Digital Signature Certificate.
Other certifying authorities may include (n) Code Solutions, National Informatics Centre, Safescrypt and Institute for Development and Research in Banking Technology.
The type of applicant and the purpose for which the Digital Signature Certificate is obtained defines the kind of DSC one must apply for depending on the need. There are three types of Digital Signature certificates issued by the certifying authorities.
Class 1 Certificates : These are issued to individual/private subscribers and are used to confirm that the user’s name and email contact details from the clearly defined subject lie within the database of the certifying authority.
Class 2 Certificates : These are issued to the director/signatory authorities of the companies for e-filing with the Registrar of Companies (ROC). Class 2 certificate is mandatory for individuals who have to sign manual documents while filing returns with the ROC.
Class 3 Certificates : These certificates are used in online participation/bidding in e-auctions and online tenders anywhere in India. The vendors who wish to participate in the online tenders must have a Class 3 digital signature certificate.
Advertised Tender Enquiry
The government advertises specifications on GeM portal and Central Public Procurement Portal (CPPP) for the acquisition of goods and services. And give Note to sellers to apply tenders.This method used by government institutions when the acquisition of goods and services of the value of INR. 25 lakhs and above.
Limited Tender Enquiry
This method is applied when any goods and services regularly secured by government departments such as paper, printer cartridge filler, water supply, etc.
Under limited tender inquiries, limited suppliers are impaneled by the Government Department.
Usually, Limited Tender Enquiry is used when the expected value of the goods and help to be procured is less than INR 25 Lac.
Two-Stage Bidding
This is a conventional method used to procure high-value items such as buying plants and machines etc. and when any acquisition requires to assess complex and technical terms.
Under Two-Stage Bidding, tender is allocated to a supplier based on strongly passing below 2 stages:
* Technical Assessment,
* Financial L1 (Lowest Price) Bid
Single Tender Enquiry
This approach adopted when the availability of wanted goods and services limited in the open market or suppliers is very limited.
This method is very useful for startups having unique and innovative products. In order to enable startups, the government has also launched a special scheme “Startup Runway” for getting unique and innovative products directly from startups.
There can be several factors such as
* Only a single supplier is available to the best of the knowledge of the management department's officials.
* When the acquisition of goods is urgent and necessary to purchase from a particular known source.
* When specific additional machines or spare parts required which is only harmonious with existing procured machinery.
Electronic Reverse Auctions
Auction is what when you give a higher bid to buy the auctioneered item. Under Reverse auction, you bid a more economical price to sell your product.
An Electronic Reverse Auction is a type of online auction available. Under electronic reverse auction, there is one customer (government department) and many potential traders (private companies). The sellers give lower bid to obtain business from the buyer and bid will typically lower as the sellers negotiate each other.
The entity has to submit documents like business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.
Business Address Proof : If the premise is self-owned– Allotment letter, possession letter, lease deed or property tax receipt. If there is a municipal license in the business name or the name of the proprietor, partner or director of the business, no other possession document is required to be submitted. If the premise is rented– Rent receipt and a no-objection certificate from the landlord is required. Also, any utility bill or document evidencing the landlord’s ownership is to be submitted.
Copies of Sale Bill and Purchase Bill : Business is required to submit a copy of the sale bill related to each end product that it will supply. Also, for each raw material that it will purchase, a purchase bill has to be submitted.
Partnership Deed/ MoA and AoA : If the business is a partnership firm, it has to submit its partnership deed. If the partnership firm is registered, it has to submit the registration certificate also.
In the case of a company, a copy of Memorandum of Association and Articles of Association, and certificate of incorporation has to be submitted. With it, a copy of the resolution passed in general meeting, and the copy of board resolution authorizing a director to sign the MSME application is also to be submitted.
Copy of Licenses and Bills of Machinery Purchased : In a few cases, the applicant has to submit a copy of an industrial license which is to be obtained by giving an application to Govt. of India. Further, all bills and receipts related to purchasing and installation of plant and machinery have to be kept safe and required to be submitted on demand
It is issued by the licensing department of the municipal corporation in various departments like industries, engineering, health, etc.
The government of India authorizes the license in a manner to regulate in cities across the country. It grants permission by the way of letters or documents/certificates to carry on any business or trade where it is located. The issuance of the license varies from state to state depending on the local government agencies' (Municipals) rules and regulations.
Industries license : small, medium and large scale manufacturing factories
Shop license : Dangerous and Offensive trades like a sale of firewood, cracker manufacturer, candle manufacturer, barbershop, dhobi shop, etc.
Food establishment license : Restaurants, hotels, food stall, canteen, the sale of meat & vegetables, bakeries, etc.
The applicant must have crossed the age of 18 years
The applicant must not have any criminal records Businesses must be legally permissible.
Professional Tax Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. Professional tax needs to be deducted from the salary or wages paid amount. Application for the Registration Certificate should be made to the assesses state tax department within 30 days of employing staff for his business. If the assesses has more than one place of work, then an application should be made separately to each authority concerning the place of work under the jurisdiction of that authority
If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).
There is much compliance which a company needs to follow; however, we would like to discuss few most important aspects about the bond and LUT filings :
No Taxes : If LUT or bond is filed, and then no taxes are required to be paid on exports.
Filings : The filing needs to be done manually and there is no online portal.
Annual : You need to visit tax dept. and submit the documents at regular intervals.
Once the application is accepted by the tax department, you need to submit the export documents to the tax department on regular basis. You can file the documents either on monthly, quarterly or on every shipment. This is because your application is generally valid for one year and needs to be renewed each year. Therefore, if you do not renew the bond or LUT, then you shall become ineligible to export without payment of tax.
All GST registered goods and service exporters are eligible to submit LUT except the exporters who have been prosecuted for any offence and the amount of tax evasion exceeds Rs.250 lakhs under the CGST Act or the Integrated Goods and Services Tax Act,2017 or any of the existing laws.In such cases, where the exporter is not eligible to file LUT, they would have to furnish an export bond
Financial statements have incredible importance for both internal and external stakeholders which is why it is important for every business person and anyone providing this facility has high earning sources.
The main aim of accounting is to ensure transparency, reliability, consistency, and comparability of the financial statements.
Accounting Standards mainly deal with four major issues of accounting, namely
The average salary for an Accountant in India is Rs. 248,152. So if you are capable enough to provide this service, you can create a high earning source for yourself.
If you are salaried, you need not pay advance tax as your employer deducts tax at source (TDS). However, you still need to file it if you have other sources of income, increasing your liability to more than Rs 10,000. Professionals (self-employed) and businessmen will have to pay taxes in advance as, given their business income, the liability can be huge. The same goes for companies and corporates.
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Advance tax or self-assessment taxes have to be paid on the 15th of September, December, and March, in installments of 30 percent, 30 percent, and 40 percent, respectively, for non-corporates. Corporates need to pay it on the 15th of June, September, December, and March. While employers deduct TDS on salaries, advance tax is paid on income that has not been subjected to TDS.
If you fail to pay your advance tax or the amount you pay is less than the mandated 30% of the total liability by the first deadline (September 25), you will be liable to pay interest on the amount, which comes to 1% simple interest per month on the defaulted amount for three months.
The same interest penalty would apply if you fail to pay the amount by the second deadline (December 15). Failing to pay the third and last installment (March 25) would mean paying 1% simple interest on the defaulted amount for every month until the tax is fully paid.
Since charges for CA Certification depends on different business turnover but the minimum charges including GST are Rs. 1888, so if a franchise owner gets a minimum of 5 services in a month. Eventually, he/she is making more than 6000 per month with this single facility and with additional services of promoter App facility the earning potential increases.
If you want to get further in the details contact your nearest GST Suvidha Centers.
DIN number is compulsory for any person planning to register any Company in India and be a member of the Board of Directors. DIN number is not required for stockholders of a Company. Further, a DIN number can be used for expressing a Limited Liability Partnership (LLP) or a current DPIN (Designated Partner Identification Number) that can be used for registering a Company.
DSC in the name of the DIN candidate must be secured before implementing for DIN number. Digital Signature Certificate can be achieved through GST Suvidha Centers.
Digital Signature Certificates are announced in the kind of a USB token with a validity of 1 or 2 years. To implement and receive DSC, the applicant must submit the signed DSC application along with the identity and address proof of the candidate. Image of the identity and address proof presented must be self-attested. In case of foreign nationals or non-resident indians (NRIs) – submitting identity or address proof with foreign origin, the self-attested copy must be notarized or verified by the Indian Embassy in the Country.
PAN Card : Mandatory for Indian Nationals
Passport : Acceptable for Foreign Nationals and Non-Resident Indians (NRIs)
Passports
Driving License
Voters ID card
Student SSC / HSC / Graduation / Post-graduation Degrees Certificate
Birth certificate
School leaving certificate
Electricity bill
Mobile / Telephone bill
Water Bill
Gas Bill
Property Tax/ Corporation/ Municipal Corporation Receipt
Service Tax/VAT Tax/Sales Tax registration certificate
Bank Statement attested by the banker
PF statement
Once, DSC is received for the candidate, DIN Form can be listed with the Ministry of Corporate Affairs. The DIN form must be electronically signed with the Digital Signature Certificate; hence, the necessity for receiving DSC before DIN. The DIN form must also include a picture of the applicant along with identification and address proof.
Once the DIN application is registered and the appeal is approved, DIN number is provided immediately. In case any errors are noticed in the DIN form, further reports are demanded by the DIN cell. On submission of the required documents, the DIN cell would then allow the DIN number in 2 – 3 working days.
DIN numbers do not have an expiry period and no further agreement rules are needed for supporting the validity of a DIN number. DIN numbers are allotted by way of intimation through DIN allotment letter and no other documents is issued.
Following documents should be enclosed in hardcopy with the application:
The notice of Board Meeting should be sent to all the directors before 7 days and acknowledgment for the same should be taken.
The ROC takes care of the registration of a company (also referred to as incorporation of the company) in the country.
It completes regulation and reporting of companies and their shareholders and directors and also administers government reporting of several matters which includes the annual filing of numerous documents.
The Registrar of Companies plays an essential role in fostering and facilitating business culture.
Every company in the country requires the approval of the ROC to come into existence. The ROC provides an incorporation certificate which is the conclusive evidence of the existence of any company. A company, once incorporated, cannot cease unless the name of the company is struck-off from the register of companies.
Among other functions, it is worthy to note that the Registrar of Companies could also ask for supplementary information from any company. It could search its premises and seize the books of accounts with the prior approval of the court.
Most importantly, the Registrar of Companies could also file a petition for winding up of a company.
How companies are registered by the Registrar of Companies
No company can come into existence by itself. It requires a certificate of incorporation issued by the Registrar of Companies after the finalization of several statutory requirements. As part of the statutory process, the promoters need to submit several documents to the Registrar of Companies. These documents include Memorandum of Association (MoA), Articles of Association (AoA), the pre-incorporation agreement for appointing directors/ managing directors and the declaration by an authorized person confirming that requirements relating to registration have been adhered to.
After authenticating the documents, the ROC inputs the company’s name in the register of companies and releases the certificate of incorporation. The Registrar together with the certificate of incorporation also issues a certificate of commencement of business. A public limited company is required to get this certificate prior to commencing business.
ROC can refuse to register
ROC can refuse to register a company on various grounds. The Memorandum of Association (MOA) which is filled with the registrar comprises five clauses viz. name clause; objects clause; registered office clause; capital clause and liability clause. The registrar needs to ensure that no registration is allowed for companies having an objectionable name. The registrar could also decline to register any company which has unlawful objectives.
The role of ROC continues even after the registration of a company
There is no end to the association of the ROC and a company. For instance, a company might require changing its name, objectives or registered office. In every such instance, a company would have to intimate the ROC after completion of the formalities.
Filling resolutions with the Registrar of Companies
As per the provisions contained in section 117 of the Companies Act, every resolution is required to be filed with the ROC within 30 days of being passed. The Registrar of Companies needs to record all such resolutions. The Company law has also laid down the penalty in case of failure to file the resolutions with the registrar within the stipulated time. In other words, a company is required to intimate the Registrar of Companies concerning all of its activities which includes appointing directors or managing directors, issuing prospectus, appointing sole-selling agents, or the resolution regarding voluntary winding up, etc.
The type of applicant and the purpose for which the Digital Signature Certificate is obtained defines the kind of DSC one must apply for depending on the need. There are three types of Digital Signature certificates issued by the certifying authorities.
PAN CARD
Udyog Adhaar or Company Registration or LLP Registration
VAT/TIN Number (if applicable)
Bank Account & supporting KYC documents
Identity proof
Address proof
Canceled cheque copy
IE Code listing is permanent registration which is valid for a lifelong. Hence, there will be no troubles for updating, filing, and restoration of IE Code registration. It is legitimate until the company exists or the certification is withdrawn or abandoned. Further, unlike tax filings like GST registration or PF registration, the merchant or exporter does not need to file any filings or support any other agreement necessary like annual filing.
As IE code registration is one-time and demands no further agreement, it is suggested for all businesses and LLPs to obtain IE code after establishment.
An Import Export Code is needed for the import of any type of goods by a business. However, the following are the kind of personalities are excused from obtaining an IE Code:
Importer and export by central government or agencies or undertakings for defense purposes or another specified list under Foreign Trade Order, 1993.
Import or Export of Goods for individual use.
Persons having IEC can appeal for and receive RCMC registration. Registration-Cum-Membership Certificate (RCMC) is a certificate that verifies an exporter dealing with products listed with an agency/ company that is approved by the Indian Government. The license is issued for five years by the Export Promotional Councils or commodity board in India. An exporter aspiring to receive an RCMC has to maintain his mainstream interest in the application. This application would be presented to the Export Promotion Council/ Commodity Board relating to that line of business.
All entities in India engaged in the import or export of goods/services from India would be expected to obtain IE Code from the Director-General of Foreign Trade.
To obtain IE Code from the DGFT, the applicant must submit copies of identification and address proof along with a proof of operational bank account in the name of the candidate.
The requirements for an Income Tax audit are included under section 44AB of the Income Tax Act of 1961. The Income Tax audit is an analysis of a person or company’s tax returns by any outside company to confirm that all the income, expense and reduction information is filed correctly. Tax audits have been made compulsory by the Income Tax Act that states that all taxpayers are expected to get the accounts of their company or organization audited according to the provision of the act.
Under section 44AB, the audit aims to determine the actual veracity of returns filed and the completion of other conditions as per relevant rules. The Chartered Accountant doing the tax audit has to relinquish all his/her findings and views in the form of an audit report. The audit report is given as per format open in the form numbers 3CA/3CB and 3CD
Individuals and entities who are required to get their accounts audited have to file their income tax return compulsorily using a digital signature. Furthermore, the Ministry of Corporate Affairs has made it mandatory for companies to file all reports, applications, and forms using a digital signature only.
Under GST also, a company can get registered only by verifying the GST application through a digital signature. The use of a digital signature is necessary even for filing all applications, amendments and other related forms.
The Controller of Certifying Authority to issue digital signatures in India has authorized eMudhra as one of the certifying authority for issuance of Digital Signature Certificate.
Other certifying authorities may include (n) Code Solutions, National Informatics Centre, Safescrypt and Institute for Development and Research in Banking Technology.
• 0.5% of the total sales in case of a trade organisation or 0.5% of the total receipts in case of service of the current financial year.
• The business may be fined with an amount of Rs.1,50,000.
The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.
The TDS is that tax which is deducted at source i.e. from an individual’s salary before it gets credited to employee’s account. It is usually done by a pre-determined deductor. Otherwise, generally, TDS is deducted each month by employers based on tax projections declared by the employee at the beginning of each financial year. The TDS taxes are collected under the Income Tax Act, 1961 and is managed by the Central Board for Direct Taxes (CBDT). It falls under the part of Department of Revenue and is therefore managed by Indian Revenue Services (IRS). It is also vital at the time of conducting an audit.
It provides Exclusive Rights as the owner can enjoy the sole ownership of the Trademark and can stop other from the unauthorized use of the Trademark under the same class where it is registered. It gives the right to sue the unauthorized user of the Trademark Registered.
The established quality of your product and services are known by everyone through the trademark and which establishes trust and goodwill among the customers in market. It helps in creating permanent customers
It makes your product and identity of products different from that of the existing and foreseen competitors and acts as efficient commercial tool. The logo can communicate your vision, quality or unique characteristic of your company and any organization.
Customers attach the product’s quality with the brand name and this image is created in the market about the quality of a particular brand which helps in attracting new customers
Registered trademark is a right created which can be sold, assigned, franchised or commercially contracted. Also, the Trademark is an intangible asset which gives the advantage to the organization.
Once the trademark is registered you can use the ® symbol on your logo stating that it is a registered trademark and no one can use the same trademark. No competitor or other person can use the word mark or logo registered by you under trademark. It is cost efficient and helps your company create an unique image as Once you register the trademark you have to just pay the maintenance cost and renewal cost .
Digital Signature Certificates help authenticate the personal information details of the individual holder when conducting business online.
Reduced cost and time : Instead of signing the hard copy documents physically and scanning them to send them via e-mail, you can digitally sign the PDF files and send them much more quickly. The Digital Signature certificate holder does not have to be physically present to conduct or authorize a business
Data integrity : Documents that are signed digitally cannot be altered or edited after signing, which makes the data safe and secure. The government agencies often ask for these certificates to cross-check and verify the business transaction.
Authenticity of documents : Digitally signed documents give confidence to the receiver to be assured of the signer’s authenticity. They can take action based on such documents without getting worried about the documents being forged.
The balance sheet is a very important financial statement for many reasons. It can be looked at on its own, and in conjunction with other statements like the income statement and cash flow statement to get a full picture of a company’s health. 4 important takeaways include :
Liquidity : Comparing a company’s current assets to its current liabilities provides a picture of liquidity. Current assets should be greater than current liabilities so the company can cover its short-term obligations. The Current Ratio and Quick Ratio are examples of liquidity financial metrics.
Leverage : Looking at how a company is financed indicates how much leverage it has, which in turn indicates how much financial risk the company is taking. Comparing debt to equity and debt to total capital are common ways of assessing leverage on the balance sheet.
fficiency : By using the income statement in connection with the balance sheet it’s possible to assess how efficiently a company uses its assets. For example, dividing revenue into fixed assets produces the Asset Turnover Ratio to indicate how efficiently the company turns assets into revenue. Additionally, the working capital cycle shows how well a company manages its cash in the short term.
Rates of Return : The balance sheet can be used to evaluate how well a company generates returns. For example, dividing net income into shareholders’ equity produces Return on Equity (ROE), and dividing net income into total assets produces Return on Assets (ROA), and dividing net income into debt plus equity results in Return on Invested Capital (ROIC).
There are several balance sheet formats available. The more common is the classified, common size, comparative, and vertical balance sheets. They are explained as follows:
Classified balance sheet : This format presents information about an entity's assets, liabilities, and shareholders' equity that is aggregated (or "classified") into subcategories of accounts. It is the most common type of balance sheet presentation and does a good job of consolidating a large number of individual accounts into a format that is eminently readable. Accountants should present balance sheet information in the same classification structure over multiple periods, to make the information in the periods more comparable.
Common size balance sheet : This format presents not only the standard information contained in a balance sheet but also a column that notes the same information as a percentage of the total assets (for asset line items) or as a percentage of total liabilities and shareholders' equity (for liability or shareholders' equity line items). It is useful for constructing trend lines to examine the relative changes in the size of different accounts.
Comparative balance sheet : This format presents side-by-side information about an entity's assets, liabilities, and shareholders' equity as of multiple points in time. For example, a comparative balance sheet could present the balance sheet as of the end of each year for the past three years. It is useful for highlighting changes over time.
Vertical balance sheet : This format is one in which the balance sheet presentation format is a single column of numbers, beginning with asset line items, followed by liability line items, and ending with shareholders' equity line items. Within each of these categories, line items are presented in decreasing order of liquidity.
There are several balance sheet formats available. The more common is the classified, common size, comparative, and vertical balance sheets. They are explained as follows:
Classified balance sheet : This format presents information about an entity's assets, liabilities, and shareholders' equity that is aggregated (or "classified") into subcategories of accounts. It is the most common type of balance sheet presentation and does a good job of consolidating a large number of individual accounts into a format that is eminently readable. Accountants should present balance sheet information in the same classification structure over multiple periods, to make the information in the periods more comparable.
Common size balance sheet : This format presents not only the standard information contained in a balance sheet but also a column that notes the same information as a percentage of the total assets (for asset line items) or as a percentage of total liabilities and shareholders' equity (for liability or shareholders' equity line items). It is useful for constructing trend lines to examine the relative changes in the size of different accounts.
Comparative balance sheet : This format presents side-by-side information about an entity's assets, liabilities, and shareholders' equity as of multiple points in time. For example, a comparative balance sheet could present the balance sheet as of the end of each year for the past three years. It is useful for highlighting changes over time.
Vertical balance sheet : This format is one in which the balance sheet presentation format is a single column of numbers, beginning with asset line items, followed by liability line items, and ending with shareholders' equity line items. Within each of these categories, line items are presented in decreasing order of liquidity.
Main benefits or advantages of profit and loss account can be expressed as follows:
Helps to Track Net Profit or Net Loss : One of the major benefits of preparing a profit and loss account is to track business performance in terms of net profit or a net loss. Net profit or net loss for a certain period can be obtained with the help of a profit and loss account.
Helps to Track Indirect Expenses : Indirect expenses of the business of a particular accounting period can be tracked and measured with the help of information provided in the profit and loss account.
Helps to Determine the Net Profit Ratio : Profit and loss account determines the net profit of the business for a particular period. So, it helps to obtain the net profit ratio (ratio between net profit and sales). It can be determined by using the following formula :
Net Profit Ratio = Net Profit / Net Sales
Helps To Control Indirect Expenses : The profit and loss account provides data regarding the different indirect expenses of the business firm. It helps to control and minimize excess expenses to improve the profitability of the firm.
Helps in Decision Making : Profit and loss account provides detailed information about, net profit, net loss and indirect expenses of the business which helps to compare the current profitability position with the profitability position of the previous period. So, it helps to predict future performance, makes plans and makes better decisions.
It consists of two main categories: "revenue and gains" and "expenses and losses." By subtracting the expenses and losses from the revenues and gains, you have one indicator of a company's financial health during the period in question.
Revenues
Within the "revenue and gains" category, the first figure needed to complete a profit and loss statement is the amount of revenue the company generated during the period in question. For a retailer or manufacturer, for example, primary revenues may be the income generated from sales of the product or service. A revenue figure is a raw number, meaning it reflects total sales without regard to any expenses incurred as part of the sale. Secondary revenues may also apply in the event the business earned income by interest on cash in the bank or rents. Secondary revenue includes income earned from activities apart from selling services or merchandise.
Gains
Gains made by the company during the period in question are also reported under the "revenue and gains" section of the profit-and-loss statement. A gain occurs when the company sells an asset for more than the book value. When a company wins a lawsuit and receives a monetary settlement, this can also be considered again.
Expenses
Expenses are part of the second category, "expenses and losses," on a profit-and-loss statement. Expenses include anything involved in the cost of selling the service or product. Within the expense category, you will typically find the cost of goods sold, supplies and equipment, wages and commissions and other direct costs of selling the product or service. Common expenses that fall within these subcategories include office supplies, office or equipment rental payments, goods purchased to produce the product, along with employee salaries or wages.
Losses
Losses make up the other half of the "expenses and losses" category on a profit-and-loss statement. Losses can be thought of as the converse of gains. If a company sells an asset for less than the book value, the deficit is reported as a loss. Likewise, if a company loses a lawsuit and is required to pay out a monetary judgment, then the judgment amount is reported on the profit-and-loss statement as a loss.
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