How to incorporate a private limited company in India

 A private limited company is the most popular form of organization in India. Start-ups prefer this because it helps in getting seed funding and issue ESOPS. As they are legal entities, they need registration and are subject to a few rules for annual filing and for the payment of taxes. There are certain registration steps to incorporate a Private Limited Company, it varies from country to country on how one needs to register.

 

Registering a business may seem like an intimidating process, but it's not that complicated. 

 

Every business must register itself as part of mandatory legal compliance. First, you need to choose a business structure while applying. You will also need to check for the name availability of your company. One also needs to have documents like Proof of Identification, Proof of address, Rental agreement, etc... 

 

Now-a -days, registering a company in our country is a simple 4-step process. At the beginning of the process, you need the DSC (Digital Signature Certificate). As most things are online now, digital signatures are required to fill out forms in the MCA portal. The DSC is mandatory for all proposed directors, memorandums, and signatories. The second step is the Director Identification Number (DIN), which is to be obtained by anybody who wants to be a director, after this the name and the address proof are to be provided in the company registration form. Then, comes the registration on the MCA Portal; for this, the SPICe + form is to be filled and the documents are to be submitted. After registering, the director can log in to access the MCA portal service. This includes submitting electronic forms and viewing published documents. 

 

Lastly, it’s the Certificate of Incorporation, once the registration is done and the documents are submitted, then the application will be reviewed and after that, the certificate is issued. These are some easy steps of registering for a company. Once, all the steps are completed there are some conformances to be followed. There are a lot of benefits of having a private limited company. So that’s how one can incorporate a Private Limited Company in India by only following a few steps and rules. 

Long term vs short term capital gains tax: Here are key things you should know | TDS Compliances Services

Asset creation is a goal that most of us strive for throughout our lives, working hard to accumulate assets that will enable us to live a stable and comfortable life. Asset generation and distribution are often governed by laws in a social society, with the government maintaining track of them.

The income tax department in India keeps a close eye on assets, and asset owners must pay tax on the assets they own. The purpose of owning assets is to derive financial benefits from them, which can be obtained through sale or lease/rent.

 

What is a capital asset as per the law?

 

As per Section 2(14) of the IT Act, 1961:

Capital Assets have been defined as a property of any kind held by an assessee (Taxpayer) whether connected with his business or profession or not.

But excludes the following to be assessed as capital assets:

(i) Any stock-in-trade and raw materials held for the purposes of his business or profession

(ii) Personal effects, i.e., to say, movable property (including wearing apparel and furniture, but excluding jewellery, archaeological collections, drawings, paintings, sculptures and any work of art) held for personal use by the assessee or any member of his family dependant on him

(iii) Agricultural land in India not being situated within the jurisdiction of a municipality or within 8 km. of a municipality as may be notified

(iv) Gold bonds

(v) Special Bearer Bonds, 1991; and

(vi) Gold Deposit Bonds.

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RBI Monetary Policy: Repo Rate remains at 4 percent | TDS Compliances Services

During the Reserve Bank of India’s Monetary Policy Committee today, the Reserve Bank of India (RBI) Governor Shaktikanta Das today decided to keep the repo rate unchanged at 4 per cent. RBI’s monetary policy committee voted unanimously to maintain the repo rates intact as they found it necessary to support growth. Repo Rate is the key interest rate at which the RBI lends money to commercial banks.

Besides, the reverse repo rate remains intact at 3.35%, Marginal Standing Facility Rate and Bank Rate at 4.25%, as announced during the RBI MPC. While announcing the monetary policy review Das also maintained the Gross Domestic Product (GDP) at 9.5 per cent for FY22.

 

However, citing inflation concerns, the regulator increased the CPI inflation estimate to 5.7 per cent from 5.1 per cent.

 

Experts’ reaction to RBI Monetary Policy Committee Announcements:

 

Venkatraman Venkateswaran, Group President & CFO, Federal Bank Ltd

 

The very clear message from RBI comes as a continuation to the commencement of normalisation about a month back. The 10-year bond yields have moved from 6% to 6.20% in the last two months. The extension of the liquidity facility won’t make much of a difference in the present situation, given the fact that banks still have not fully utilised the existing limits. Liquidity thus is not a matter of concern at this point. Credit off-take is still tepid. Accommodating & supporting growth is crucial and so has RBI prioritised growth over inflation. Gradual & steady calibrated liquidity withdrawals would continue.

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Challenges On The Path To Taking A Company Towards IPO | TDS Compliances Services

When planning to take your company public, it is critical to map investor sentiments for the brand/ company and create the right pitch that is attractive and valuable for all proposed stakeholders

 

• The many laws that regulate the running of public corporations account for the significant variation in how public and private companies are handled.

 

• When the company decides to go for IPO, it must build the right team to go public; selection of competent lead managers and merchant bankers for its issue is a must.

 

Entrepreneurs who dream of taking their firms public might anticipate declaring their IPO by striking the stock exchange bell and celebrate an elaborate closing meal. 

 

However, these heady pre-IPO fantasies may swiftly run into several substantial real-world problems that public company executives encounter regularly. There are significant challenges that public firms regularly face that private company owners should carefully consider before deciding to go public.

 

Indeed, it is a crowning glory, but a lot of planned hard work has to be put in to win the crown. When planning to take your company public, it is critical to map investor sentiments for the brand/ company and create the right pitch that is attractive and valuable for all proposed stakeholders. Then comes conducting due diligence and drafting of a proper road map on handling all the incremental compliance requirements that come post the IPO. It should be recalled that there will be new responsibilities and restrictions that may come for the management post IPO, and these need a proper assessment before taking the dip.

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