Registration And Incorporation Services

Forming a business entity in India is a lot more simplified than earlier. However, a professional consultancy is always recommended for a smooth set-up and operation. We are handling incorporation and registration services for corporate and non-corporate business start-up in Bangalore and other industrial cities. As you start your new venture, we prudently get essential registrations and compliances for you without any hassle. According to your expected business type and volume, we advise and help in getting all the mandatory registrations.

Sole Proprietorship Firm
When single person runs a business then such kind of business is called as proprietary business, and the owner of the business is called as proprietor. Proprietorship is the most common form of the business which is used in India. You can start and operate the business with minimum regulatory compliance. However there is no full-fledged way available to register your proprietorship by Indian Government. Tax registration and other business registration’s is the right way to show existence of your proprietary business

Partnership Firm
A firm or company established between two or more partners with the goal of earning profit is called as a Partnership Firm. It is not compulsory to register a partnership firm but there are added advantages if a partnership firm is registered. Partnership deed is the legal document which is created to form a partnership firm.

Indian Partnership Act 1932 is the governing law which regulates the partnership firms in India. As per the act “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”. Maximum number of members in a partnership is 10 for a banking business and 20 for other businesses to enter into a partnership firm.

Limited Liability Partnership (LLP)
Limited Liability Partnership (LLP) Registration as the name suggests defines limited liability to its partners. Thus it has features of both, a corporation and a partnership. One partner is responsible for only his own actions and not the actions of his partner. LLPs are governed by Limited Liability Partnership Act(LLP Act), 2008. (LLP)

Private Limited Company
A Private Limited Company is a privately held small business entity. The liability of members of a private limited company is limited to the number of shares held by that member. A private limited company is governed by Companies Act, 2013. Minimum number of shareholders required to start a private limited company is two while the upper limit of members is 200 in accordance with the Companies Act, 2013.

If a private limited company faces financial risk, its shareholders are not liable to sell their individual assets i.e. they have limited liability. There must be minimum two directors and maximum 15 directors for a private limited company and a director must be 18 years above in age. A foreign national can become a director of private limited company India.

It is compulsory to add private limited to the name of a private limited company India. Minimum paid up capital amount for a private limited company is Rs. 1 Lakh. A private limited company keeps on existing even in the case of death or bankruptcy of its Members.

One Person Company (OPC)
A one person company is a company which contains exactly one member. It is a separate legal entity from its promoter and the promoter has limited liability.

Entrepreneurs who are capable of starting a venture on their own can make use of one person company (OPC) in India. In an OPC, there is only one shareholder who is an Indian citizen and Indian resident i.e. stayed in India for at least 182 days in the preceding year.

Shareholder nominates another person as a nominee in case of death or incapacity of the shareholder. One person company was introduced in the Companies Act, 2013 to encourage self-employment. Rules of OPC do not permit Non-Banking Financial Institutions.

One Person Company in India is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder.

Section 8 Company
If any company wants to the promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object then it can register itself under section 8 of companies Act 2013.This kind of company is called as Section 8 company.

The companies registered under section 8 will be treated as limited companies without the addition to its name limited.

Setting Up Of Liaison Offices In India
Prospective companies and investors looking to enter India must carefully consider their options for investment and available avenues for establishing a business presence. Liaison offices (LOs) are a popular option for foreign investors exploring the Indian market for the first time, and unsure of how the country’s liberalizing FDI caps will affect their business.

In contrast to other business structures, LOs allow foreign companies to establish a light footprint in India while keeping their financial, legal, and administrative commitments low.

A Foreign Company / Corporation can establish a representative or liaison office in India by obtaining permission from the Reserve Bank of India (RBI) and subsequently registering it with the ROC and State Police.

A Liaison Office (LO) functions as a place in India which represents a foreign company primarily to understand and explore the general business environment, market research for the products of the parent company and to provide and seek information from potential customers or vendors.

A liaison office of the foreign company cannot engage in any commercial activities, and the parent company shall meet all the expenses of the liaison office. A liaison office is a foreign company and Indian government taxes the profits of such entities when it carries out the transactions which amount to commercial activities through a permanent establishment (PE) at higher rates. As of now the tax on the profit of the foreign company is 40% in contrast to the tax rate @ 22% on Indian company.

The Foreign Exchange Management Act (FEMA) governs the application and approval process for the establishment of a liaison or branch office in India.

Under the Act, foreign enterprises must receive specific approval from the Reserve Bank of India’s (RBI) Foreign Exchange Department to operate a liaison office in the country.

Registration Of Charitable Trust In India
A Trust is the obligation or responsibility placed on one in whom confidence or authority is place; it is a confidence reposed in a person by conveying to him the legal title to property which he is to hold for the benefit of others.

Therefore, the “Trustee” responsibility includes protection of rightful ownership in the Trust property, the preservation of the Trust property and channelizing the income from the Trust property in accordance with the intentions of the creator of the Trust.

The trust deed is the most important instrument in a trust. It prescribes the main objectives for which the trust is set up. There is no upper limit for the trustees in a trust, but a minimum of two trustees are always required for registration. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members.

Government privileges and tax benefits are not available to a private trust, whereas public trusts after registration with the income tax can avail certain tax exemptions. We are experienced in obtaining necessary income tax registration for tax exemption or benefit.

Registration Of Society
A society is the simplest form of a Non-Governmental Organization in India and can be registered to operate on state level or national level for educational, charitable, religious, welfare or for promotion of art, music, culture, etc., In India, the registration of a society is done under The Societies Registration Act, 1860.

The society though can engage in profit generation activities. However the profits of such a NGO cannot be shared to its members. The MOA of the society prescribe the objects for which it is created, and the rules are the guidelines for internal working of the society.

Registration Under Shops & Establishment Act
The Shops and Establishment Act is a state-specific law which may differ from state to state. The object is to govern and improve the working conditions and rights of the workers, like wage payments, leaves, holidays & work hours, etc.,

The registration under shops and establishment act is regulated by the labour department of respective state, and it is mandatory for all business entities which do not fall within the ambit or applicability of The Factories Act, 1948. Even cases where the employees are working from home, this registration is necessary to obtain. Most of the state governments have passed their own law through the legislature assembly or have adopted some other state government legislation on shops and establishment. We are providing professional services in the matter of registration of the establishment and compliance with various provisions which may be required under respective Shops and Establishment Act.

Applies to all commercial establishments which includes shops, offices, schools, hospitals, societies, charitable trusts, educational institutions which operate for the motive to earn profits. However, factories are not covered by the shops & establishments Act and are regulated by the Factories Act, 1948.

The application for Shops and Establishment Registration need to be filed before the Labour Department having jurisdiction on the registered office of the company or LLP and every other place of business where employees are employed. The application must be filed within 30 Days of the establishment of the place of business.

Professional Tax Registration
Professional Tax is a tax imposed by some of the state governments in India on persons earning income from salary or practicing professionals such as Chartered Accountant, Company Secretary, Lawyer, Doctor etc. and from the company, LLP, Directors and Designated Partners. 

Each professional, the Directors of Company, Designated Partners of the LLP or any other employer (which may Company or LLP) is under obligation to seek registration as mentioned above and to ensure that professional tax is deducted from the salary of employees. The deducted professional tax from the employees must be deposited in the appropriate office designated by the state government, and a return of professional tax must be filed specifying the payment of professional tax. Every employer is under an obligation to deduct and pay tax on behalf of employees, for this purpose the employer should obtain the registration certificate from the departmental of professional tax within 30 days from the date of his liability.

Trade License
Trade License is a license or permission issued by municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade.

Trade License(s) are issued by the authorized department of a municipal corporation in consultation with other specialized departments like fire brigade, health and engineering department having jurisdiction over the business.

The objective of Trade License is control business locations by way of putting constraints on people from running certain types of businesses from their home to maintain the separate business environment and preserves locality environment.

While some state has made it mandatory to obtain a trade license, but in some states it is optional. The kind of license and license fee also differs from state to state. Some states charge a monthly fee while others charge a % of the turnover.

FSSAI Registration
It is mandatory for every food business. “Food business” means any undertaking, whether for profit or not and whether public or private, which is carrying out activities related to any stage of manufacture, processing, packaging, storage, transportation, distribution of food, import and includes food services, catering services, the sale of food or food ingredients.

The state FSSAI License is required in all cases where the turnover of the Food Business Operator is more than 12 lakhs in the financial year. In other words, if you are operating with FSSAI Registration, then you must obtain the FSSAI State License when your turnover reaches 12 Lakhs

The Central License is mandatory for FBO operating in multiple states, importer, 100% export oriented units, FBO providing catering services in central government agencies like Railways, Air and Airport, Seaport, defence etc.

Every FBO which has a turnover less than 12 lakhs need to apply for registration whereas if the turnover is more than 12 lakhs it is required to apply for a licence with Food Safety and Standard Authority of India (FSSAI). The government fee is based on the number of years the entity is applying for registration i.e. validity period.

Provident Fund Registration
Establishment Registration with Employers Provident Fund Organisation (EPFO) is mandatory if the number of employees exceeds 20 and may be obtained voluntarily if the employee’s number is less than twenty. Application with PF Department shall be made within 30 days of reaching the number of 20 Employees for the establishment.

ESIC Registration
Employees’ State Insurance Corporation, a need based social insurance scheme incorporated under Employees” State Insurance Act in order to assure better medical care to the employees or workers and their immediate dependents. The scheme protects the interest of employees during incidents and emergencies which include maternity, sickness, demise due to employment injury or harm, permanent or temporary physical disablement and everything that affects the earning capacity.

Every establishment employing over 10 employees or if in past has employed more than 10 employees then the establishment is compulsorily required to register itself and provide benefits of ESIC to its employees.

The employer has to contribute 3.25% of the total wages paid to employees, while employee contribution shall be 0.75% of his total wages. The responsibility to deduct the employee contribution is on the employer.

The employer covered under ESIC has to file Monthly ESIC Return on or before the 21st day of the following month. The return period is of six months starting from April to September in a financial year.

FCRA Registration
Charitable Trusts, Societies, Section 8 Company that receive foreign contribution or donation from foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation Act, 2010. Such a registration under the Foreign Contribution Regulation Act, 2010 is called a FCRA registration.

GST Registration
Under the new tax regime of Goods and Services Tax, all persons involved in the supply of goods or services are required to obtain registration of GST. Those who are not registered under GST shall not be allowed to collect GST from customers or claim input tax credit (ITC) on inward supply.

GST Council has prescribed 20 Lakhs of turnover to be the threshold limit for registration under GST. However, for northeastern states, it is 10 Lakhs. The registration must be applied within 30 days of reaching the threshold limit.

If you are engaged in the supply of goods or services to customers in another state then regardless of turnover, you need to obtain the registration before commencing any interstate trade.

It is compulsory irrespective of the turnover, for casual taxable person, or those need to pay tax on RCM, Non-Resident taxable person, Input Service Distributor, E-commerce Operator, etc.

MSME / Udyog Aadhar Registration
Every Micro, Small or Medium Enterprises must enroll itself for issuance of Udyog Aadhar, this enrollment is valid for a lifetime and can be obtained by those units or enterprises which have already started operations and not for the enterprise which is planned to be started.

To promote the growth of Micro, Small & Medium Enterprises, the government of India gives various concessions and extends financial assistance exclusively to the units or enterprise which qualifies to be a micro, small and medium enterprises.

The Micro Small & Medium Enterprises Development Act 2006 makes it mandatory for MSME to register themselves with government and to obtain Udyog Aadhar for availing benefits provided under MSME Development Act. The terminology like MSME, SSI or Udyog Aadhar is one and same thing. In other words, there is only one registration which a micro, small and medium enterprises has to obtain and that is UDYOG AADHAR.

MSME is the backbone of the modern Indian economy and is considered as the growth engine for equitable and sustainable economic development of the country. Under MSME all kinds of enterprises can obtain registration, like manufacturers the service providers are also eligible for MSME benefits. Hence they are also required to get UDYOG AADHAR Registration.

An MSME is entitled to many benefits such as a reduction in the fee for the filing of trademark, copyright, patent, and design applications. Further, all government department has to necessarily source their supplies from a MSME.

Allotment Of Import Export Code Number ( IEC )
Import Export Code (IEC) is a ten digit number, comprising alphabets and numbers. IEC is a mandatory prerequisite to starting a business of Import or Export in India. The IEC code is a pan based registration, hence against one pan number the director general of foreign trade can issue only one IE Code.

The IEC is a unique number through which a person is identified at all offices of Customs and DGFT across India. In general all the Imports and Exports can be done without any other authorization, license or permission.

In case you wish to import any item which is restricted, an application for license or permission to import can be made to the DGFT explaining the specific reasons for the export or import.

The regional director of DGFT having jurisdiction over the place of business is the authority who allots IE Code to all type of applicants. The IE Code is a permanent identification number allotted to a person desirous to do the business of Import or Export in India. It never expires.

Allotment of PAN and TAN
Permanent Account Number (PAN) is a unique identification 10 digit number allotted to each tax payer i.e. Company, LLP, Firm, Individual, HUF, society, trust etc.

Getting TAN number is very important for business entity deduction or collecting tax as it is required to make payment of TDS and TCS.