What is slump sale? | Trademark Registration in India

A single entity could have separate segments or undertakings with its own set of assets and liabilities each focused on a different business. Therefore, when the need arises, the entity can sell off a segment or the undertaking. This is called a slump sale.

 

CONTENTS

1. Slump Sale under Income Tax
2. Tax Effect in a Slump Sale
3. Slump sale vs. Itemised sale
4. Case study
5. Other matters
6. Slump Sale under Income Tax

​A slump sale for income tax purposes would be one where an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking.

It may be important to note here that finding out individual values may be of relevance only for the purpose of determining stamp duty or any other similar taxes. 

(Applicable in case of Land & Building transferred along with the respective undertaking)

 Tax Effect in a Slump Sale

The gain or loss resulting out of a slump sale shall be a Capital Gain/Loss under the Income Tax Act.

 (In the hands of the seller)

The computation has been prescribed as follows:

the capital gain or loss as computed above will be either long-term or short-term depending upon the period for which the undertaking is held.

If the undertaking is held for more than 36 months, the resulting capital gain or loss shall be long-term and if it is held for less than 36 months, the resulting capital gain or loss shall be short-term.

Further, there will be no indexation benefit available in the computation of the capital gains.

Net worth: In computing the net worth of the entity, the following points need to be considered:

The value of net worth should not take into account any change in the value of the asset or liability resulting from the revaluation of such asset or liability.

In case of depreciable assets under the Income Tax Act, the Written Down Value of such assets as per the Act shall be considered.

In the case of assets on which 100% deduction has been allowed u/s 35AD (specified business), the value of such assets will not be considered.

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Trademark Registration in India

A business contract is a legal agreement between a buyer and seller of goods or services. Business contracts can be used by anyone making any kind of business exchange – from large companies to individuals. Business contracts should include all details about the exchange, including payment, the type of goods or services, and the responsibilities of each party. A business contract will protect both the buyer and seller in the event the other party does not hold up their end of the agreement.

A Business agreement is a kind of agreement in which each party agrees to an exchange typically involving money, goods, and services. It protects both buyer and seller by reducing agreements to writings. The contract can be as long or as short as possible and necessary in order to cover the important details of the contract.

 A business agreement requires the following:

• Offer
• Acceptance
• Consideration
• Meeting of the minds

​​The outturn of not having a signed agreement:

When you have a business contract reduced to writing, you have a clear road map detailing what you and the other party to the contract agreed to. Because contracts are legally binding, if the other party fails to meet their obligations, you have the right to legal recourse.

The absence of written service agreements and sales agreements has led to many disagreements. This can lead to lost business and ill will. In some cases, if the contract is not in writing, it is not enforceable – even if there is no dispute over the terms.

Lawyers often say oral contracts are not worth the paper they are written on. This is because proving the terms of the agreement, absent a written document, is nearly impossible.

Also, once a business agreement is signed, we cannot get out of it. Hence, we can conclude that while entering any contract/ or business deal, there must always be a clear picture of the contract and its terms and conditions.

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How To Register Trademark In India Online

Registering a trademark is a crucial step in protecting your brand identity and intellectual property. In India, the process has become more accessible through online registration. This guide will walk you through the steps required to register a trademark in India, right from the comfort of your home or office.

Step 1: Determine Trademark Eligibility
Before you begin the registration process, you need to ensure that your proposed trademark is eligible. It should be distinctive and not identical or similar to existing trademarks. It shouldn't violate any Indian laws or offend any religious or cultural sentiments.

Step 2: Conduct a Trademark Search
To avoid potential conflicts and rejections, it's essential to conduct a thorough trademark search. The Indian government's online portal provides a database for searching existing trademarks. This will help you ensure that your trademark is unique and not already in use.

Step 3: Create an Account on the IP India Website
To start the online trademark registration process, you'll need to create an account on the Intellectual Property India website (http://www.ipindia.nic.in/). If you already have an account, you can simply log in.

Step 4: Fill Out the Trademark Application
Once you're logged in, you can fill out the application form. This form requires details about your trademark, its class, and your personal or business information. Be as accurate and detailed as possible when completing the form.

Step 5: Pay the Application Fee
After submitting the application form, you'll need to pay the requisite fee. The fee amount depends on the type of applicant (individual, startup, or company), the number of classes, and whether you're claiming priority under the Paris Convention.

Step 6: Application Review
After submission, the trademark office will review your application. They may ask for clarifications or additional documents. It's essential to monitor your application status regularly on the IP India website.

Step 7: Trademark Journal Publication
Once published, there's a 3-month window for objections. If no objections are raised, your trademark will proceed to registration.

Step 8: Trademark Registration
If there are no objections, your trademark will be registered, and a certificate of registration will be issued. You are now the legal owner of the registered trademark.

Step 9: Protect and Maintain Your Trademark
After registering your trademark, it's crucial to protect and maintain it. Trademarks in India are registered for ten years initially and can be renewed indefinitely. Be vigilant against infringement and misuse.

Registering a trademark in India online is a streamlined process, but it does require attention to detail and adherence to the legal requirements. By following the steps mentioned in this guide, you can protect your brand's identity and gain the legal rights to your trademark. Remember to consult with a legal professional or trademark agent if you have any doubts or questions during the registration process.

More info Click Here :  How To Register Trademark In India Online

Corporate Restructuring

What Is Restructuring?

Restructuring is the corporate management term used for the act of reorganizing ownership, operational, legal, or other structures of a company for the need of making it more profitable and better developed, and organized.

What is corporate restructuring?

Corporate restructuring plays a vital role in the life of businesses and companies. Companies will pursue corporate restructuring strategies in response to their falling profits, changes in ownership, general market, changes in corporate strategy.

Corporate Restructuring is the process of reorganizing the structure of the organization to fetch more profits from its operations or is best suited to the present situation.

It is the most complex and fundamental phenomenon that management confronts.

Enhance the company’s performance ad profit: 

To eliminate the entire financial crisis and enhance the company’s performance this process of corporate restructuring is considered very important. Financial and legal experts are hired by the management of concerned corporate entities facing the financial crunches for advisory and assistance in the negotiation and the transaction deals. 

The concerned entity may look at operations reduction, debt financing, and any portion of the company. Change in the ownership structure of the company is due to the adverse economic conditions, takeover, merger, adverse changes in business such as buyouts, bankruptcy, over-employed personnel, lack of integration between the divisions, etc.

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Brand Registration Online

With incremental adoption of globalization and rapid growth in several multi-national companies trying to establish their operation facilities, production houses in India, taxation in India is being aligned with global tax practices.

Therefore, it is incredibly important for every business entity to develop a thorough understanding of the transfer pricing regulations applicable on an Indian registered business entity, to plan the way for a business as well as its tax structure.

What is Transfer Pricing?

Transfer pricing generally refers to the price(s) of transactions controlled and practiced between associated enterprises. Such pricing decisions may be taken under conditions differing from independent enterprises.

Transfer pricing is the value attached to transfers of goods, services, and technology between related entities located in different territories. It also refers to the value attached to transfers between unrelated parties which are controlled by a common entity.

In other words, Profits accruing to the parent company can be increased by setting high transfer prices to siphon off profits from subsidiaries registered and operating in high tax countries and low transfer prices to divert profits to subsidiaries located in low-tax jurisdictions.

 More info : Brand Registration Online

Startup India Registration Online

 In GST Regime, businesses whose ANNUAL Turnover exceeds

INR 40 Lakhs, for the supply of goods, and (Rs 20 lakhs for Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripura, Uttarakhand) INR 20 lakhs, for the supply of services, are mandatorily required to be registered as a normal taxable person.

Goods and Services Tax (GST) was introduced by the Government of India in 2017 to facilitate their mission of One nation, one tax, one market; The introduction of GST has led to the absorption of several Central and State taxes into one tax structure which offers complete and comprehensive set-off of input goods and services, as a result, reducing the cost of locally manufactured goods and services.

 In GST Regime, businesses whose ANNUAL Turnover exceeds
INR 40 Lakhs, for the supply of goods, and     (Rs 20 lakhs for Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripura, Uttarakhand) INR 20 lakhs, for the supply of services, are mandatorily required to be registered as a normal taxable person.

Who else is required to get GST registration done, even if Turnover based threshold limits have not been crossed?

1.  Agents of a supplier & Input service distributor
2.  Those paying tax under the reverse charge mechanism
3.  A person who supplies via e-commerce aggregator
4.  Every e-commerce aggregator
5.  Any person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

How can SSI help, if you want to register yourself under the GST mechanism?

SSI uses a comprehensive approach to first help its clients in understanding the GST mechanism by:

1. Discussing applicability of GST on their respective business
2. Elaborating prescribed limit(s) for the statutory exemption
3. Identifying the rate of GST applicable to the products and services being sold
4. Listing out the intervals, mode, and manner for payment of GST and several other compliances that become applicable post-registration.

Get More Info :  Startup India Registration Online

Why Virtual CFO services are very important for growing companies and startups?

 

All you need to know.

Virtual CFO services are a new trend in the financial industry that allows companies to have access to professional CFO expertise without the cost of hiring a full-time employee. These services provide a range of financial support to companies, from budgeting and financial analysis to compliance management and raising capital.

One of the key activities a Virtual CFO would perform for an enterprise is financial analysis. This includes analyzing financial data to identify trends, opportunities, and risks. This can help companies make better decisions, such as identifying areas for cost savings or new revenue streams. Additionally, a Virtual CFO can help with budgeting, forecasting, and financial planning.

Startups can benefit greatly from Virtual CFO services by having professional expertise at a very cost-friendly budget. Many startups do not have the resources to hire a full-time CFO, but still need the support and guidance to grow their business. Virtual CFO services provide the necessary financial support without the cost of a full-time employee.

Also, Virtual CFO services are an excellent option for companies looking to access professional CFO expertise without the cost of hiring a full-time employee. They can provide a range of financial support, including budgeting, financial analysis, compliance management, and raising capital. They can also help startups and MSMEs with decision making, budgeting, financial analysis, compliance management & overview, raising capital, etc.

Setup Services India is a leading provider of Virtual CFO services. The company’s experienced team of financial experts offers a wide range of services to businesses of all sizes and industries. The company’s founders and CXOs have a versatile experience in the field of finance and have worked with a vast array of industries, this means that they understand the unique financial needs of different businesses and can provide customized solutions to help them achieve their financial goals.

One of the key advantages of choosing Setup Services India for Virtual CFO services is that the company is an ISO 9001:2015 certified service provider. This means that the company adheres to strict quality standards and is committed to providing high-quality services to its clients. Additionally, the company’s founder and Managing Director, Mr. Nishant Arora, has been awarded in 2022 amongst the Top 10 most promising outsourced Virtual CFO services provider in India by the Silicon India Magazine. This recognition is a testament to the company’s expertise and commitment to providing the best possible service to its clients.

Read More About: Virtual CFO services provider

Company Registration in India

If you are planning to start business in India, the first &the foremost step is to establish the legal presence of your business in India by registering it in accordance to the applicable provisions of Companies Act, 2013.

 

Thinking why to choose Company Registration in India? Company Registration in India will boost the progress of your business and provide an additional edge over those who have not registered.

 

• Shields from personal liability and protects from alternative risks and losses.
• Attracts more customers
• Procures bank credits and good investment from reliable investors with ease.
• Offers liability protection to protect your company’s assets
• Greater capital contribution and greater stability, increases the potential to grow big and expand
• You will also get Zero Balance Current Account

 

Why Setup Services India to help you in Registering your Company in India?

 

The Company Registration process is completely online, so you don’t even have to leave your home to get your entity registered. Our highly qualified professionals ensure that not even a single client at SSI is ever bothered to participate in a cumbersome procedure(s) while doing their business; we take this as our responsibility to solve the complex trails of statutory compliances for you to save your time and effort in doing your business. Want to know more OR have any doubt?? Request a Call Back!

Read More About:  PAN India LLP Registration Service   Business setup services India   Online GST registration Services in India 

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. 

Want to know more OR have any doubt?? Request a Call Back!

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Challenges On The Path To Taking A Company Towards IPO

 

• 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.

Extensive Regulations

The many laws that regulate the running of public corporations account for the significant variation in how public and private companies are handled. The company will be required to follow extensive internal compliance procedures, file financial reports, accept financial performance audits by independent third parties and comply with operating rules that did not exist when the company was a private, closely owned enterprise.

More Info :  Virtual CFO Services India

SSI Enters Financial Aggregation Market

 

When businesses are facing harrowing times due to ill-managed resources or ideas, the need to have specialized personnel to help the ideation sail through has increased multifold.

At this juncture, Setup Services India (SSI) announced its entry into the Financial Aggregation market.

The company aims to develop a one-stop financial services solution for the next-gen entrepreneurs; SSI aims to facilitate business registration, compliance(s) management and advisory processes to be robust, transparent and cost-effective.

Headquartered in New Delhi, SSI has a profound professional network and in-house team of CA/CS to ensure the efficiency and effectiveness of the services being delivered. The company says that the goal is to become an extensive KPO in the B2B arena and provide various solutions to the new India.

“SSI will be following aggregation model to serve its clientele from all over India. We aim to facilitate the ease of doing business in India by promoting the culture of outsourcing technical activities like accounting and bookkeeping, which will in turn help entrepreneurs to increase their focus on core business activities rather than on compliances,” said Nishant Arora, Founder, Setup Services India (SSI).

Explaining the Financial Aggregation model and its lack of popularity in India, Arora said, “A financial data aggregation service connects banks and individuals’ banking information, bringing it all together in one place, such as a mobile banking app that automatically sets and tracks budgets. They compile information from clients’ bank accounts, such as spending habits, investments, and credit histories, from a variety of banks to develop a personal financial wealth management tool for them.”

The company has extensive plans to expand in India. “We plan to explore and launch Industrial, commercial real estate advisory in phase 2 implementation to provide an extensive one-stop solution to its foreign clients who are willing to set up their business in India. Also, such products may or may not come under the umbrella of SSI but will surely be coming under Sixth Element Finserv P Ltd., the holding company of SSI. Sixth Element Finserv Pvt. Ltd. will be expanding in investment advisory domain extensively and may initially come as an investment advisory company and then launch a full-fledged portfolio Management Service in its own brand,” said Arora.

More Info :  SSI Enters Financial Aggregation Market