Registration of Online homemade food business

Overview: Online homemade food business

Registration of Online homemade food business, If cooking food is your passion, now is the best time to turn your passion into a mature career. Turn your hobby into a profitable business by selling homemade food in the comfort of your home.

Online homemade food business, shopping at home?

In this article, we will reveal the secrets of successfully starting a grocery store at home, highlighting the different permits you need to obtain and other legal requirements you need to meet to get started.

Register with FSSAI?

When you sell homemade food online, you need to make sure that people trust your business. Obtaining an FSSAI license is the easiest way to gain credibility and trust. FSSAI registration proves to your customers that you comply with the highest quality and hygiene standards when preparing food at home. You can provide your FSSAI registration number on the online portal used to sell groceries to assure your customers that you will not jeopardize their safety.

Do I need to register with FSSAI to sell homemade food online?

According to the Food Safety Act 2006, all food operators in India must be registered with FSSAI. Therefore, if you want to sell homemade food online in India, you need to register with FSSAI. If you are a small-scale business, you only need to register with FSSAI. If you want to operate a large-scale business, you need a license.

FSSAI license or registration is also subject to company bills. The three options for people who wish to sell homemade food online are as follows:

If the annual bill is less than 12 lakh, please use Form A to register.
The government permit is billed annually on Form B: find 12 to 20 lakh.
Obtained a central license through Form B, with annual sales exceeding 20 lakh.

If the restaurant operates in multiple states, the headquarters must also purchase additional central licenses. However, in most cases, the homemade grocery store is a small local business and only requires FSSAI registration. Documents required to obtain an FSSAI license.

Documents that may be required to obtain an FSSAI license:

Form A/Form B duly filled out and signed.
2 Passport size photo.
The PAN card of the alleged owner.
Confirm the venue address.
Certificate of Registration/Articles of Association or Articles of Association
Grocery List Form
Declaration form
Authority letter
Form IX: The Board resolution

How to open an online grocery store:

Before starting such a business, you must first conduct a market analysis to understand exactly what to do and how to sell. And look for ways to position yourself as a tool to fill this gap by making it your unique selling proposition.
you need to find local sellers and suppliers who can help you ship groceries at competitive prices. Develop brand-specific packaging and labeling systems to differentiate you from the competitors.
Then register your grocery store with FSSAI.
If you want to expand your activities in the future, you will need to register for consumption tax, as this may exceed the tax exemption limit.
Before proceeding, please consult your local health department and community for more information about legal requirements.
Cooperate with other food e-commerce platforms, or you want to deliver it yourself. If you want to use the platform, please register on their portal and complete the verification process.
Otherwise, you need to set up your website or application to accept orders. Create a website and publish your menu and product prices. To determine competitive food prices, compare your products with those of competitors by analyzing the market.
If you want to choose online payment instead of the cash on delivery option, you may also need to work with payment platforms to ensure smooth transactions.
First, establish a good reputation for customers and provide them with discounts and offers to spread your message about yourself.
Remember to be creative in branding and marketing. Finally, you should continue to develop innovative marketing strategies to help you grow your brand and business organically.

Important considerations when opening an online grocery store at home:

FSSAI licenses are valid for one to five years. According to FBO regulations, all family catering companies must apply for an extension at least 30 days before the license expires. If they fail to complete by the deadline, they will have to pay a fine of ₹100 for each day of extension. Therefore, all online food companies need to track the expiration date of their licenses.
If the authorities discover that a food company is not registered with FSSAI or does not comply with its conditions, there is a risk of serious legal consequences. Unlicensed work can result in imprisonment or a fine of up to 5 lakh. Selling low-quality food can be fined up to 5 lakh.
If you want to expand your grocery store in the future, registering may help. In this case, it is best to register as a sole proprietorship, LLP, or partnership.
India’s food safety laws are slightly different. Therefore, it is best to contact a local prosecutor with experience in municipal regulations. This is necessary so that you can meet all requirements.
In some cases, you may need another license to open a grocery store. The following are some of the licenses you may need:

Shops and Establishments Act license
Trade license
NOC from fire brigade, police, municipality, and society
Eating house licence and signage licence
Environmental clearance

If you want to get started with an Online homemade food business, reach out to Chartered Accountants from CA in Delhi‘s homepage

How to Register a freelancer’s business

Register a freelancer’s business and Know about Legal requirements

Are you looking to start a career as a freelancer? You are at the right place. This post will help you guide how you can register a freelancer’s business. We understand your dream is to follow your passion and be a master of your schedule. But at the same time, you must also need to consider the legal requirements for freelancers in India. You might be having a lot of questions, confusion about how to get started, legal requirements, business requirements. But don’t worry, this post will cover up all.

Freelance Registration and License in India

If you are starting up as a freelancer, you do not need to mandatorily register a business until your work reaches a certain turnover limit. You can continue to work as a freelancer, with your existing PAN number, if your annual freelancer income is not more than 20 lacs per year. TDS (Tax Deducted at Source) process on your PAN card and included in your income tax.

In other words, If your annual income is less than 20 lacs, you can be freely Freelancing in India, but for various business reasons, still a good option to get yourself register as a proprietor with a mere GST Registration. If you require any assistance with GST Registration, our team will be happy to help you out. You can choose from a list of Chartered Accountants from our homepage.

Once your business register under GST, you can open a current account on behalf of your business and issue a receipt If you want to accept payment of more than 10 Lack rupees.

Additionally, the benefit of getting GST Registration is that you can claim your input tax credit of GST for business-related expenses (like laptop expenses, furniture, appliances, etc.)

Freelancer’s tax In India (Goods and Services Taxes and Income Taxes)

Like any other individual, freelancers are also suppose to pay taxes according to government regulations.

GST for freelancers

If a freelancer earns more than 20 lakh per year (in all states except the northeast of India), GST registration may be required. You must pay a GST of 18% (in most cases) for any income from professional services (mainly done online). For states in northeastern India, the limit is 10 lakh per year. For most professional services, the tax rate is 18%, but there may be exceptions for service fees,

Freelance income tax

India’s income tax law stipulates that any income a person earns through the exercise of skills consider a professional income, and self-employment income is the sum of all income you receive from your customers, So is, therefore, taxable income beyond a slab.

For Freelancer, income not exceeds 2.5 lakh will not tax. Income from 2.5 lakh to 5 lakh rupees is tax at a rate of 10%. 5 to 10 lakh to 20% and above 10 lakh to 30 percent. Freelancers can use Form ITR 4 when submitting tax returns.

You can use the Form 26 AS associated with your PAN number to help you find all detained TDS. As a self-employed person, you may also need to pay taxes in advance. Withholding tax is the frequent payment of taxes in a given year, rather than one tax payment in a given year.

According to Article 80 of the Income Tax Law, self-employed individuals can reduce tax expenditures by more than 1.5 lakh. That is when you invest a certain amount of money in tax-saving tools.

Freelance Contract:

One of the biggest challenges in a freelancer’s life is getting payments. Disputes arise when expectations do not match, so be clear and a complete contract must establish. The scope of work and payment terms mutually agree, negotiated, and formulated. Clearly state your presence in the contract.

As Register a freelancer’s business, you should consider some of the items in the contract.

Remuneration: the agreed amount to be paid after the work completed.

Deadline: The deadline set by both parties.

Scope of work: Define the type of activities of the self-employed person during the contract period.

Additional service: payment terms freelancers set default payment terms for each extra effort.

Late payment terms: Freelancers can charge interest rates or set different deadlines (this is very important because some customers do not pay during this period).

Advance payment: This clause allows freelancers to charge a certain fee in advance.

Termination: The customer can choose to terminate the contract.

Confidentiality: During the term of office, freelancers are not allow to transfer vacancies to third parties.

Privacy: Shows the relationship between clients and freelancers.

The following are the main points to include in your Freelancer’s contract:

Scope or purpose of work,

Contract period, termination and start of the validity period, timetable

Payment method

Verification of basic information

Mainly, based on the effective considerations of Article 2 (d) of the Indian Contract Law of 1872,

If you want to start with Register a freelancer’s business, reach out to Chartered Accountants from CA in Delhi‘s homepage

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Receive Money in India from Abroad

Overview:

When receiving money in India from abroad, there are tax implications that should be considered. Suppose you are sending the money, you double-check how much tax you need to pay when sending money to India in your country/region. Conversely, if you are a resident of India and receive money from abroad, you need to know whether you need to pay taxes on the amount received. In this article, we will address these two issues and more.

What taxes are charged to the sender when transferring from abroad to India?

There is no tax on money sent from abroad to India. None at all. This is because the country already levies taxes on the income received. India has signed double taxation treaties with 85 other countries.

No.	Countries
1	Armenia
2	Australia
3	Austria
4	Bangladesh
5	Belarus
6	Belgium
7	Botswana
8	Brazil
9	Bulgaria
10	Canada
11	China
12	Cyprus
13	Czech Republic
14	Denmark
15	Egypt
16	Finland
17	France
18	Georgia
19	Germany
20	Greece
21	Jordan
22	Greece
23	Jordan
24	Hungary
25	Iceland
26	Indonesia
27	Ireland
28	Israel
29	Italy
30	Japan
31	Kazakhstan
32	Kenya
33	South Korea
34	Kuwait
35	Kyrgyzstan
36	Libya
37	Lithuania
38	Luxembourg
39	Malaysia
40	Malta
41	Mauritius
42	Mexico
43	Mongolia
44	Montenegro
45	Morocco
46	Mozambique
47	Myanmar
48	Namibia
49	Nepal
50	Netherlands
51	New Zealand
52	Norway
53	Oman
54	Philippines
55	Poland
56	Portugal
57	Qatar
58	Romania
59	Russia
60	Saudi Arabia
61	Serbia
62	Singapore
63	Slovenia
64	South Africa
65	Spain
66	Sri Lanka
67	Sudan
68	Sweden
69	Switzerland
70	Syria
71	Tajikistan
72	Tanzania
73	Thailand
74	Trinidad and Tobago
75	Turkey
76	Turkmenistan
77	UAE
78	UAR
79	Uganda
80	UK
81	Ukraine
82	USA
83	Uzbekistan
84	Vietnam
85	Zambia

As per the Double Taxation Avoidance Agreement DTAA between India and any of the above countries, if you have already paid taxes on income earned abroad, you do not need to pay taxes when transferring the money to India
When sending money to India via foreign exchange or remittance services, the only taxes you need to pay are service tax (minor) and transaction fees.

Therefore, if you plan to remit money from overseas to your parents or close relatives for personal expenses, you only need to remit them directly to your savings account in India. There is no additional tax on this amount.

So how much money can you send to India in a year?

There is no limit to the amount you can send to India within a year. All governments obtain funds from abroad to strengthen the economy. India has no restrictions on receiving funds from abroad.
However, other countries/regions may have regulations that limit the amount of money you can send abroad. These rules vary from country to country.

Example: In the United States, there are no restrictions on how you can send money to India.
When you transfer money to your NRE/NRO account or the bank account of your close relatives, it is tax-free.
According to US law, a person’s close relatives are defined as:
Current or former spouse; father, mother, guardian, brother, sister, son, daughter; or
father-in-law, mother-in-law, son-in-law, daughter-in-law, son-in-law, or daughter-in-law.
However, if you want to send money to friends in India, you can send up to $14,000 tax-free per person per year. You must pay US gift tax.

What taxes are required for recipients of Receive Money in India from Abroad?

If the sender is a close relative, no tax is levied.

According to the regulations of the Reserve Bank of India, transfers of foreign persons who are closely related to you are regarded as tax-free donations.

Close relatives are defined as;

The individual’s spouse’s brother,

A Sister’s individual’s spouse’s brother,

Sister’s brother, sister’s individual’s parent’s brother,

Sister’s all direct ancestors or

Any lineal Ascendants, or Descendants of the individual’s spouse.

However, if you are receive money in India from abroad and sender is not related to you, any amount exceeding 50,000 rupees (approximately US$700) will be taxed as income. excessive.

For example, if your friend in the United States gives you 10,000 US dollars as a gift (approximately 700,000 rupees at the current Indian dollar exchange rate), you need to add a surplus of 6,50,000 rupees to your income.

If the donation exceeds $14,000, your friend must pay gift tax in the United States, and you must pay income tax in India of more than 50,000 rupees.

Frequently Asked Questions: Receive Money in India from Abroad

Will I be taxed if I transfer money from overseas to general savings account in India?
If you send money to a close relative, you will not be taxed; however, if you send money to a friend or acquaintance in India and the amount exceeds 50,000 rupees, you will be taxed. Anything over 50,000 rupees is considered income and the recipient must pay Indian income tax.
What are the implications of transferring money from India to the United States?
The tax impact of sending money from India to the US will vary depending on the size of the transfer.
GST is required for foreign exchange transactions in India.
Tax on remittance from India to any country.
1- [up to 100,000 rupees] 45-180 rupees,
2- [100,000 to 10,00,000 rupees] 180 -990 rupees,
3- [above Rs.10,00,000] 990-60,000 rupees,
The maximum tax limit for goods and services in foreign exchange transactions is 60,000 rupees.
Do I need to pay taxes on foreign funds transferred to my account?
When a close relative sends money abroad, you do not need to pay taxes. However, if the money is sent by someone other than your close relatives, an amount up to 50,000 rupees is considered a tax-deductible gift. If the funds in your account exceed 50,000 rupees.50,000 Then you need to add an extra amount to your income and pay income tax.
How much money can I send from India overseas each year?
According to the Free Remittance Program (LRS) of the Reserve Bank of India, Indian residents can remit up to US$25,000 overseas within a fiscal year (April 1 to March 31).

If you need assistance in receiving money in India from abroad, reach out to Chartered Accountants from CA in Delhi‘s homepage

Legal regulations and compliance for freelancers in India

Overview: Compliance for freelancers

As a freelancer, it is simple to place the legal and accounting compliance for freelancers at the backburner, However, being a freelancer isn’t simply being a free or independent self-hired worker, but it also means you have a commercial enterprise running along you. To emerge as a successful entrepreneur, it’s very critical to maintain the quality of the services or products you provide and most significantly the way you organizeit and all you need to comply with. Here are some essential compliances you should keep in mind while running a freelancing business.

Accounting and Taxation Compliance for Freelancers:

Not only professionals running Under Trade Name, But Freelancers are also required to follow certain compliances. Most critical of it is to File Income Tax Returns under Section 139 of IT ACT.

Section 44AA of the Income Tax Act calls for that anyone who’s into the career of law, medicine, architecture, engineering, accountancy, technical consultancy, indoors designing, legal representative, movie artist, organization secretary, and records technology, are mandatorily required to maintain books of accounts.

Rule 6F gives for files always maintained. According to it The books of bills consist of the coins book, journal, ledger, carbon copies of serially numbered payments, unique payments of prices incurred, and price vouchers for petty prices incurred for the year.

The others are required to preserve it simplest if their Income from the commercial enterprise/career exceeds Rs.2.5 lakhs for Financial Year 2017-18 (Earlier it was1.2 Lakhs).

With the creation of the Negative List in Service Tax in Finance Act 2012, all of the offerings cover withinside the negative listing are exempt from Service Tax. This has widened the scope of the Service tax net significantly because the those offerings now no longer covered withinside the negative listing are taxable.

As for services now no longer stated in Negative List as I.T. Services or engineering/ technical offerings are taxable and, you’re in charge to:

Register yourself if gross receipts or aggregate value of the taxable service in a financial year exceeds nine lakh rupees.
Compulsorily charge service tax on payments raised on customers as soon as the aggregate value of the taxable service in a financial year exceeds 10 lakhs rupees.

A Freelancer can also declare deductions much like the ones of professionals. To declare deductions or even to run a commercial enterprise you want to incorporate.

Legal Entities a Freelancer can pass for:

To assist you to decide on which entity freelancers, here’s a short evaluation of common business entities in India. The legal guidelines of Each nation are distinctive, so far encouraged to seek advice from a legal professional so he or she will be able to recommend current regulations and policies of the nation earlier than you are making a decision.

If you want to connect to a professional, you can reach out to Chartered Accountants on CA in Delhi ‘s homepage

Sole proprietorship:

The simplest and the most common entity for a freelancers work is a sole proprietorship. It is a person walking his/her commercial enterprise. It calls for very less hassles and much less paperwork. As a sole proprietor, you can name your business, as per your preference, and freely advertise about it. Additionally, if you wish to restrict others from using the name, you may also opt for Trademark Registration

Partnership Firm / LLP:

When two or more people collaborate into a business, they can go ahead with a partnership firm, which can be register or unregistered. Usually, no government filings ( other than few tax registrations) are required to form a partnership firm, however, it’s far more secure for partnersto have a written settlement amongst themselves if you want to keep away from future disputes on people roles and duties or division of profits and losses. LLP introduced in 2008, is an improved version of a general partnership.

It offers promoters a useful gain of limited liability & the business enterprise could have continuous existence, The business enterprise must integrate via the Ministry of Corporate Affairs. Not even audited annual returns are required to be submitted with MCA.

One Person Company:

OPC is recently introduced enhanced version of the sole proprietorship firm registration. This offers the promoter a useful gain of limited liability & the business enterprise could have continuing existence. OPC integrate via the Ministry of Corporate Affairs. Not even audit annual returns are required to be submitted with MCA. The business enterprise can nominate some other person as a director without executive powers.

Conclusion: Compliance for freelancers

Potential threats revolve around the business not just from the competitors but also the governments in the form of penalties due to non-compliance. Thus with the aid of using complying with Legal and Accounting Compliance for Freelancers, you could keep each time and money on the later stage and We at CA in Delhi have evolved a scientific procedure to get your legal and accounting compliance achieved seamlessly, We don’t speak jargon we preserve a general stage of transparency in delivering our work.

If you want to get started with compliances for freelancers, reach out to Chartered Accountants from CA in Delhi‘s homepage

How to start a cloud kitchen business

Overview: How to start a cloud kitchen

How to start a cloud kitchen: A cloud kitchen is basically a virtual restaurant, a kitchen that simply accepts incoming orders through online ordering systems and presents no eating facilities. They have a base kitchen that can provide meals to customer’s doorstep.

Additionally have their online ordering internet site and online ordering app or be given orders via numerous meals transport systems. Since the number one supply of sales for those net eating places is through numerous meal ordering systems which include Swiggy, FoodPanda, Zomato, etc., it’s miles vital to have a check-in machine that keeps a track of the deliveries and the extent the business enterprise generates from various platforms. This will prevent the problem of juggling between orders from numerous websites and their ordering structure/

Here on this blog, we’ll research the primary factors to set up and maintain a Cloud Kitchen company. Without addressing these prerequisites, it gets difficult in maintaining the company.

Location & Property:

Place and belongings are the primary differentiators between a traditional eating place and a cloud kitchen. A cloud kitchen doesn’t want an excessive footfall and high belongings position. Rather, it can without problems be an installation in a 250-three hundred sq. ft. room, as there’s no House Front. This significantly reduces the fee of commencing a cloud kitchen.

The cloud kitchen may be located in a location that is quite difficult to access, but customers have a great demand for it, especially for specific kitchens. Residential areas, behind the market, and unused parking spaces are ideal places for cooking in the cloud. You can choose a public kitchen. Because it helps to reduce the initial investment.

Licenses:

For a variety of reasons, obtaining proper permits and certifications is very important to open a kitchen in the cloud. Second, you can avoid legal troubles by obtaining a license because consumers cannot enter the facility alone to check hygiene, food safety, and readiness. Having the proper license will satisfy you. You can promote them on your website and marketing activities to convince customers that you are producing high-quality food.

FSSAI: Food Safety and Standards Authority of India. FSSAI Licenses are obligatory for food-associated enterprises in India and have to be acquired on behalf of the organization and its owner. The license length can vary from 12 months to five years and have to be renewed earlier than expiry. It’s additionally good to mention FSSAI license at the packaging and bill to construct self-belief in our client approximately our offers.

GST: In this, registration is obligatory for any enterprise in India and additionally, it’s compulsory to report all of the organization taxes in the form of GST Returns timely to the government. It has to be submitted weekly, quarterly, and annually. GST additionally allows you, vendors, because it reduces the tax quantity if all events have a GST number. Upon acquiring a a GST Registration, you can open a bank current account.

If you require any assistance for GST Registration, you can reach out to Chartered Accountants listed on our website.

Trade License: Every enterprise would require to own an alternate license, and so does the cloud kitchen. This may be acquired from the nearby municipal workplace via way of means of furnishing all important documents. It is a one-time process and a sort of obligatory legal requirement.

Fire and Safety License: Now it’s no longer obligatory, to begin with, however, it’s recommended to get one to keep yourself from away from any troubles. This is a part of the law, and fire and health agreements are obligatory for any workplace.

Additional Licenses:

The main licenses to start a cloud kitchen company are FSSAI, Shop & Establishment, GST Registration, Fire Department NOC, etc. Make sure you have these before starting a food delivery company.

Trademark registration: It is also very relevant for the cloud kitchen company because the idea of this company doesn’t allow the customer to step in, so the brand name of the business is the customer’s HERO. To protect the brand, the business owner must file trademark applications for the logo, name, wordmark consisting of different colors, patterns to create their unique identity on the market.

Kitchen Equipment & Packaging:

The kitchen equipment depends on the type of cuisine you serve. The basic equipment required to start a cloud kitchen is – stove and oven, refrigerator, knives, etc.

Packaging is an important part of operating food companies. No matter how good the food is, it will eventually ruin the entire customer experience and give the company a bad reputation. Packaging also depends on the type of food. I need a plastic container. , Bottles, spoons, etc. to ensure proper food packaging.

Staff: Because there’s no House Front, you don’t want any human beings on your cloud kitchen. Only 2-three human beings working on making things ready and dispensing meals, you could without problems open a store. When you’ve got numerous kitchen brands, the samechef will put together meals for diverse brands. Starting with a small group is best, and you could recruit an extra workforce as incoming order volumes increase.

Since there could be personnel, to work compliantly, the commercial enterprise proprietor will cope with all applicable regulations and laws. Professional tax registration, TDS, PF, Payroll, and salary size will become a critical and vital part of the commercial enterprise.

Salary Accounts, PF, etc: Unfortunately, this is the last thing cloud kitchen proprietors do because the blue-collar personnel are not too worried about paying taxes and getting Provident Fund. When you’re in a severe commercial enterprise with a lengthy-time period target, it’s essential to begin the cycle from day 1. It surely facilitates the group withinside the lengthy run, constructing consider and pleasant relationships with everyone.

Generating Online Orders And Marketing:

Once you’ve installed the kitchen and workforce, generate online orders in your cloud kitchen enterprise.

Since, A cloud kitchen doesn’t have a dine-in facility, depending entirely on online and phone meals orders, spending onmarketing and promotions is essential, at least in the preliminary days. Without a store and no boards and signage, online advertising and marketing are essential in this situation.

Listing Your Cloud Kitchen On Online Food Aggregators
Promoting Your Cloud Kitchen On Online Aggregators
Social Media Marketing
Search Engine Optimization
Loyalty Programs And SMS & Email

Conclusion: How to start a cloud kitchen

While cloud kitchens contain low threats and excessive benefits, one ought to be alert to the opposition beforehand to make profits. A cloud kitchen will virtually be the following theme. If you propose to develop your enterprise or begin a meals channel, the cloud kitchen is the more secure and wiser opportunity thinking about which you preserve it compliant.

If you want to Start with How to start a cloud kitchen, reach out to Chartered Accountants from CA in Delhi‘s homepage

Appointment & Resignation of Director In Delhi | Procedure

What is Appointment & Resignation of Director In Delhi

Appointment & Resignation of Director In Delhi, in which Directors are the brain of the company. They are the managerial staff who control and administer the Company’s Services. The revolution of directors takes place in one, another way – either by the selection of a new director or withdrawal of existing. The endeavor to carry out the change of directors is always to guarantee an optimum blend of experts on board for the interest of the company. It approves the resignation of the director lies with BoD, whereas the appointment must be made through the consent of shareholders. Whether it is an Appointment, removal, or resignation, the change does not take effect continuously; the intimation is made to the ‘Ministry of corporate affairs.’

What is the Eligibility Criteria to be a Director?

There are no designated qualifications, but an individual should comply with the following mentors be a director:

However, according to the law, a specific natural person only can be a director of any company.

Age Demarcation: There is no alternate to fixed age for being a director, but it is essential that the person who should be competent enter into any contract. Moreover, in a matter of ‘managing director,’ ‘full-time’ director, or ‘independent director of a recognized company, the person becomes eligible to be a director if he is of 21 years and has not reached the age of 70 years officially.
Determination Of Nationality: There is no restriction. However, there must be a minimum of one Indian director in the company.
DIN Needed: To be eligible, designated as a company’s director, the person must get a Director Identification Number. DIN’s purpose is to make sure no fraud takes place, anyone tries criminal activity and can be traced this unique number.
Limit Of Valid Directorship: A personality can only be a director of 20 separate companies at a time. Out of these 20 companies, only ten can be public companies.

Ineligibility

Unsound Mind Or Bankrupt Person: Anybody who is of unsound mind or is incompetent of making decisions on his own cannot be appointed as a director. This involves children, mentally disabled individuals, and frames with unstable mental faculties. Furthermore, insolvent people or individuals who have maintained bankruptcy claims in the court of law are disqualified from acting directors.
Criminal Background: If a personality has a criminal record and sentenced to confinement for more than seven years or more, he cannot be a director.
Pending Overdue Returns: If the individual not met previous returns in any of the preceding years, he shall be barred from keeping the directorial position.

Recognition: Types of Director

The company director changes in terms of the role they play, such as managing director who runs the overall purposes of the company, executive directors who look after the day-to-day methods, and independent directors who assure proper governance of the company. One company can have increased directors; nevertheless, the appointment of directors depends on the type of business like:

Type of Business:

As per ‘Section 149(1)’ of the Companies Act, 2013, every public corporation shall have a minimum number of 3 directors, whereas the least amount of directors in a private company is two and only one director in case of the ‘One Person Company.’
The highest number of directors in a public company is 15. Besides, a company can also select more than 15 directors after getting a permit from a specific resolution in the general meeting. The method of appointment of more directors does not expect the endorsement of the Central Government.
A director can determine the maximum number of directorships up to 20, including any alternative directorship of a person.
In the event of any private company or ‘public company,’ either holding or subsidiary company shall restrict to10 directorships in the ‘public company’.
All the Certified companies must appoint at least one woman director in the Board of Directors in a year from the enforcement of the second Proviso to Section 149(1) of Companies Act.
Similarly, every public company having a turnover of Rs. 300 Crore or a paid-up portion capital of Rs. One hundred crores under the latest audited financial statements shall appoint at least one woman director within a year from the convocation of the second Proviso to Section 149(1) of Companies Act.

Note: “If any person holds the efficiency of director in more than 10 or 20 companies before the commencement of Companies Act, then he shall have to determine the companies where he wishes to maintain or resign as the director within one year from such beginning. After that, he shall inform about his decision to the chosen companies as well as the concerned Registrar.

Short Note: Appointment & Resignation of Director In Delhi

Section 168 of the Companies Act, 2013, the resignation of directors, didn’t satisfy in the Companies Act, 1956. and doesn’t have a physical presence, identity as an artificial person to only a natural person can bring into life, a person who takes charge of managing the company’s operations is known as the director. Different directors are qualified for handling various aspects of the company.

Documents needed for Appointment & Resignation of Director In Delhi

Photograph: Passport size photo
PAN Card: Self-attested PAN card
Proof of Residency: Aadhar Card/ Voter ID/ Passport/ Driving License
Digital Signature Certificate: ongoing Director, may eliminated/removed
Identity proof before-mentioned as Passport/Election card/Driving License/Aadhar card
Mobile number and Personal & official email id of the Director
It is mandatory to apostille all the documents apostilled if the Director is a non-resident of India.
Notice of resignation filed with the company
Proof of dispatch
Acknowledgment of form, if received.

Resignation of the Director under Section 168

Any director can resign from his office by furnishing written notice to the company. After collecting such notice, the Board shall take note of the same, and the corporation shall intimate the Registrar in such a manner, time, and form as designated. Provided that-
The company shall place the case of such resignation in a report of directors shortly after the general gathering of the company.
The director shall also intimate and forward a copy of his resignation along with a precise reason for his resignation to the Registrar within 30 days of resignation.
The resignation of a director should take its influence from the date on which the company accepted his notice or from the itemized period mentioned by the director in mind, whichever comes later: Provided- that the director who has resigned should be liable for the offenses which appeared during his tenure even after the resignation.
Whenever all directors of a company resign at an identical time, promoter, the Central Government select the expected number of directors during which old directors will hold company till new one nominated through the company in general meeting.

Understandings behind Resignation of Directors

Dispute With The Board: When many directors work commonly, a difference of opinion ought to happen. It results in hindering the overall performance of the corporation; in such a position, the directors may decide to resign.
More Beneficial Career Opening: Everyone seeks a more satisfying career opportunity to enlarge their domain, and choose that option through AOA.
Misuse In The Company Affairs: When a director introduced to the illegal practices of the company, he may find himself becoming dragged into it that matches his reason for resignation. To defend himself from personal liability appearing out of such activities, he chooses to resign.
Suspension Due To Infringement: Any non-adherence, violation, or defaults on the director’s end can lead him into trouble.
The Recession Of Nomination: It is only appropriate to the Nominee directors who primarily appointed by the NBFC’s investors on the BOD. Once the transaction between the company, entity completed, then the Nominee director can resign, he may also leave after the removal of the nomination.

Manner of Resignation of Director concerning Companies

The resignation of a director/managing director, companies act 2013, asserts that the company has special duties and obligations to fulfill after.

The first, principal company pass a joint resolution to authorized, Notice, letter of resignation, commission form DIR11 defining the reasons behind the departure, as per the provision specified in section 168(1) of the Companies Act, 2013.
As per ’16 of Companies Rule, 2014, the resignation report, notice, ideas for the resignation shared with the Registrar of Companies (ROC) using ‘Form DIR11′, within ’30 days’ of the date of removal.
In extension to filing eForm ‘DIR11’, the company requires to provide the notice or letter of resignation necessarily. This is the scheme for the company through the resignation of the managing director; companies act 2013.
Documents submitted- Notice of resignation filed with company proof of dispatch acknowledgment form. if received.

If you want to get started with Appointment and Resignation of Director, reach out to Chartered Accountants from CA in Delhi‘s homepage

DIR 3KYC In Delhi | Due Date | Fees | Penalty

What is DIR 3KYC In Delhi, Compliance

DIR 3KYC In Delhi, DIN- unique identification number given to a person wanting to be a director or an existing director of a company. In this digitized era, application in eForm DIR 3KYC was sufficient to obtain DIN. This was a one-time process for any person who wants to be a director in one or more companies. However, now with the move of the Ministry of Corporate Affairs (MCA) to update its Registry, all directors with a DIN will have to submit their KYC details annually in eForm DIR-3 KYC.

Who has to file DIR 3KYC In Delhi Form?

As per MCA’s recent announcement, any director who allotted a DIN by or on 31st March 2018 and whose DIN is in approved status, will have to submit his KYC details to the MCA, and Further, this procedure is mandatory for the disqualified directors too.

From the Financial Year 2019-20 onwards, mandatory for every director who allotted a DIN on or before the end of the financial year and whose DIN is in approved status will have to file form DIR-3 KYC before 30th September of the immediately next financial year.

For example- For the Financial Year 2020-21, the directors having DIN or Director Partner Identification Number (DPIN) and the directors allotted with a DIN/DPIN by 31st March 2021, need to file the eForm DIR-3 KYC before 30th September 2021.

What Documents required to file Income Tax Return?

Details of Nationality and Citizenship details like gender, and date of birth.
Permanent Account Number (PAN).
Voters Identity card.
Passport (mandatory if a foreign national is holding a DIN).
Driving License.
Aadhaar card.
Personal Mobile and Personal Email Address.
Residential address.

For more information:

If you want to get started with DIR 3KYC, reach out to Chartered Accountants from CA in Delhi ‘s homepage.

ROC Compliance In Delhi | Private Limited Company | LLP | OPC

Overview of ROC Compliance In Delhi

ROC Compliance In Delhi, ROC stands for Registrar of Companies which is an office under the Indian Ministry of corporate affairs that deals with the administration of the Companies Act, 2013. Compliance appointed under section 609 of the companies act covering the various States and Union Territories vested with the primary duty of registering companies and LLPs float with respective states, the Union Territories as well as ensure such companies, LLPs comply with statutory requirements under the act.

The office of ROC functions also registry records, related to the companies registered with them, which are available for inspection by members of the public on payment of the prescribed fee. Moreover, there are currently 22 Registrars of companies (ROC) operating from offices in all major states of India.

Besides, the central government exercises administrative control over these offices through the respective Regional Directors. Such as It is important to comply with all compliances applicable to your company to avoid penalties and fines.

Our Legal Raasta team guides you on all the compliances completed, since the incorporation and your ROC Compliance for Private Limited Companies done through Legal Raasta.

What included in the ROC Compliance In Delhi Package

Compliance by Director
Board Report
Annual Report
Statutory Registers update
Drafting of Notices
Annual Filing and its documentation(AOC4, MGT-7)

Documents required with the ROC every year

1. Form MGT-7- Annual Return

Registered office details of the company, particulars of its holdings, principal business activities, as well as associate companies
Debentures, share and other securities and shareholding pattern
Indebtedness
Debenture holders and members along with changes
Directors, Promoters, key managerial personnel along with changes
Members meeting
Director’s remuneration and key managerial personnel;
Punishment or penalty imposed on the company, its officers or director, details of compounding of offenses as well as appeals made against such penalty/ punishment
Certification of compliances matters
A pattern of the shareholding of the company, such as other matters as required in the form

2. Form AOC-4 – Financial Statements & Other Documents

Mostly all companies file their financial statements and relevant attachments using Form AOC-4 each year and Statements of the company not adopted in Annual General Meeting then un-adopted financial statements filed within 30 days of the date of AGM.

On the other hand, if the financial statements are adopted by the company then the adopted financial statements must be filed within 30 days of the AGM. Apart from this, if the company needs to revise the financial statement or Board’s report then revised financial statements can also be filed using form AOC-4.

If you want to get started with ROC Compliance, reach out to Chartered Accountants from CA in Delhi ‘s homepage

Statutory Audit In Delhi | Private Limited Company | Partnership | LLP

What is Statutory Audit In Delhi

A Statutory Audit In Delhi is an examination of records held by an organization, business, government entity, or individual, which involves the analysis of financial records or other areas. A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.

To determine organization provides a fair, accurate of its financial position by examining information bank balances, bookkeeping records, financial transactions.

What is the applicable limit for mandatory Statutory Audit?

Statutory Audit In Delhi is governed under the Companies Act, 2013, and Companies (Audit and Auditors) Rules, 2014. For Limited Liability Partnerships (LLP), statutory audit is applicable if turnover in any financial year exceeds Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs.For Private Company/ Public Company, statutory audit ismandatory irrespective of Turnover, profits etc. Even if the company is incurring loss even, a Statutory Audit is Required.

Research the control environment of the organisation

The term ‘control environment’ concerns the integrity, system of values, and basic employees’ attitudes on control and management. Every organization control environment either regulatory guidelines, initiatives competitor, economic trends taking place in the country at the international level. These elements show the competitive strategy or the stand of the company in the market. Every Statutory Audit In Delhi in which auditor has to research these elements to know more about the controlled environment of the business.

Testing of Internal Controls

A test of controls is an audit procedure to test the effectiveness of a control used by a client entity to prevent or detect material misstatements. Depending on the results of this test, auditors may choose to rely upon a client’s system of controls as part of their auditing activities.

However, if test control weak, the auditors will enhance use of substantive testing, which increases the cost of the audit. The following are general classifications of tests of controls:

Reperformance – Auditors may initiate a new transaction, which controls used by the client and the effectiveness of those controls.
Observation – Auditors may observe a business process in action, and in particular the control elements of the process.
Inspection – Auditors may examine business documents for approval signatures, stamps, or review checkmarks, which indicate that controls have been performed.

The auditor has to rank the control and risks from high to low. It’s done to let the entity know which control measures are effective, providing remedies in order to curb any internal breakdowns.

Statutory Audit of Balance Sheet

A balance sheet audit evaluation of the accuracy of information found in a company’s balance sheet. It involves a number of checks, per the auditor’s balance sheet audit checklist, as auditors conduct this evaluation based on supporting documents. Balance Sheet audit will involve verification of:

Share capital and share application money. After Verification, share capital changes, changes are under resolution.
Secured loans including the latest bank statements, bank reconciliation statements, and sanctioned letters confirming the rate of interest on the loan
Unsecured loans including statements showing acceptance of a loan, rate of the interest confirmation letter, ledger copies from the books of the loan provider
Current liabilities and provisions including confirmation copies of the closing balances, the detailed break-up of the sundry creditors, ledger copies of party’s book, detailed notes on the creditors written-off, list of parties to be written-off, detailed provisions standing in the books
Dues and returns including copies of TDS paid, TCS paid, VAT paid, Sales Tax paid, excise duty paid, provident fund payable, professional tax paid etc., copies of challans.
Fixed assets including copies of invoices showing any addition to the Assets, books showing depreciation working, list of assets not yet accounted in the books
Inventories including statements showing valuation of closing stocks, statement of reconciliation and excise records, details of quantity of production and sales on daily basis, input and output ratio of the raw material
Investments including list of investment, date of investment and amount of investment made in a year, nature of investment, investments sold in the year.
Current assets including list of sundry debtors, cash and bank balance details, details of deposits etc., profit and loss account details etc.

Audit of Profit & Loss Account

Compare year-over-year numbers as well as industry benchmarking
Look at the margins such as gross profit margin, EBITDA margin, operating margin, net profit margin
Conduct Trend analysis to find out whether the metrics improving or deteriorating
Look at the Rates of return such as return on equity (ROE), return on assets (ROA)
Check the individual breakups of sales and purchases.
In the case of direct expenses and indirect expenses concentrate on the agreements like rent, fees, royalty, lease rent, advertisement, other expenses.
In this case, preliminary expenses are check treatments showing capitalization in 5 years
Minutes of the meeting should be verified showing any resolutions for capitalization of expenses, managerial remuneration, loans, approving donations
Any income from investment i.e. interest, the dividend checked with the bank account.
Verify the valuation of closing stock whether a closing stock valuation is as per accounting standard-2

Audit of GST

Cross verify GSTR 3B with GSTR 1 & GSTR 2A
There two important things that will cover under this point
The taxpayer to reconcile GSTR 3B with GSTR 2A and ensure the taxpayer is not claiming excess (ITC), if the taxpayer claims ITC excess as well as needs to pay interest, the penalty may be prescribed.
In case the GST auditor finds a mismatch between the GSTR 3B – GSTR 2A such as case the auditor needs to direct the management to amend the invoices at summary levels.
At auditing, the taxpayer keeps in mind between the invoice date, payment date did not exceed 180 days, to reverse ITC for non-payment.
Reconcile e-Way Bills with invoices to determine if there is a bogus entry in the records by the taxpayer.
Check all GST returns a file, payments within due dates or not

Audit of TDS

The auditor will check all the payments, to See whether it will come under TDS categories or not. Additionally If the company does not pay the TDS of any payment which should be as per the TDS section. He will note this mistake and mention it in his audit report.
Vouchers of TDS-related transactions have to be an audit.
The auditor will verify all the source documents relating to TDS. If the deductor paid through eTDS, the deductor handles all the documents printed, digital to an auditor for its verification.
Reconcile the books with challans and returns.

Some other important checks:

If the company pays dividends to its shareholder then check payment as per as prescribed rate and also ascertain interest paid, if there is any delay.
Check Provident Fund, ESIC, Gratuity, Bonus, Leave encashment payments Such as Ascertain applicability of provisions of the respective acts, if there is any variation, then report in the Audit report.
Check payment /aggregate payments for expenditure by account payee cheque, bank draft, through another electronic mode in excess of Rs. 10,000 or Rs. 35,000 in case of transportation), in a day. If yes, check whether such payments are falling under Rule 6DD
Check Company has not received cash in excess of Rs.2,00,000.00 in violation of section 269ST of Income Tax Act, 1961
Loan / Advances checked with due care, permitted by Companies Act, 2013, income tax Act, 1961Section 185, 186, 73-76

If you want to get start Statutory Audit, reach out to Chartered Accountants from CA in Delhi‘s homepage

Advance tax In Delhi, Due Date| Calculation | Slabs

Overview About the Advance tax and Advance tax In Delhi

Advance tax In Delhi works on ‘Pay as you earn’ principle.

If your tax liability in a financial year exceeds Rs 10,000, then the government gets very excited and can’t wait till year-end to collect tax. It asks you to pay tax in advance

It receipts help the government to get a constant flow of income throughout the year so that expenses can be incurred rather than receiving all tax payments at the end of the year. For instance: if your advance tax liability for the financial year 2011-12 has exceeded Rs. 10,000, you are expected to pay it in FY11-12 itself.

Advance tax In Delhi, due dates: Who should file it?

If you are a salaried employee, you need not pay it as your employer deducts tax at source (TDS). It is applicable when an individual has sources of income other than his salary. For instance, if an assessee earns income via capital gains on shares, interest on fixed deposits, winnings from lottery or races, capital gains on house property besides his regular business/salaried income then after adjusting for expenses or losses he needs to pay advance tax.

Please note that advance tax is payable even by salaried employees on their other income.

While employers deduct TDS on salaries, advance tax is paid on income that is not subject to TDS. Professionals (self-employed) and businessmen will have to pay taxes in advance as, given their business income, the liability can be huge. The same implies to companies and corporates.

Payment of Advance tax In Delhi: Self employed and businessmen

Due date of installment	Amount payable
On or before 15th September	Not less than 30% of the tax liability
On or before 15th December	Not less than 60% of the tax liability
On or before 15th March	100% of the tax liability

Payment of advance tax: Companies

Due date of installment	Amount payable
On or before 15th June	Not less than 15% of the tax liability
On or before 15th September	Not less than 45% of the tax liability
On or before 15th December	Not less than 75% of the tax liability
On or before 15th March	100% of the tax liability

Advance tax has to be paid on the 15th of September, December and March— in instalments of 30%, 30% and 40%, respectively—for self employed and businessman. Companies need to pay it on the 15th of June, September, December and March.

How to file it?

Individuals may pay advance tax using tax payment challans at bank branches authorised by the Income Tax (I-T) Department. It can be deposited with the Reserve Bank of India, State Bank of India, ICICI Bank, HDFC Bank, Indian Overseas Bank, Indian Bank, Allahabad Bank, Syndicate Bank, Axis Bank, Punjab National Bank, Punjab & Sindh Bank and other authorised banks. There are 926 branches in India that can accept tax payments. Individuals may also pay it online through the I-T department or the National Securities Depository.

If you miss the deadline

If you fail to pay or the amount you’ve paid is less than the mandated 30% of the total liability by the first deadline (15 September), you will need to pay an interest. This is computed @ 1% simple interest per month on the defaulted amount for three months.

The same interest penalty would apply if you fail to pay the second deadline (15 December). Failing to pay the third and last deadline (15 March) would mean paying 1% simple interest on the defaulted amount for every month until the tax is fully paid.

What if tax paid is more than required?

If the amount paid is higher than the total tax liability, the assessee will receive the excess amount as a refund. Interest @ 6% per annum paid by the Income Tax department to the assessee on the excess amount if the amount is more than 10% of tax liability.

For any queries, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.