FSSAI Registration In Delhi in which FSSAI stands for the Food Safety and Standards Authority of India, which is responsible for the issuance of food licenses to Food Business Operators. It is the apex body incorporated by the Ministry of Health and Family Welfare; Such as the Government of India is accountable for setting up standards for selling, packaging, or storage of food items in India. Additionally, it was set up under the Food Safety and Standards Act, 2006.
The same way all proprietary food units requireto get registration/license. Proprietary food means an article of food that has not been standardized under these regulations but does not include any novel food, foods for special dietary use, foods for special medical purposes, functional foods, nutraceuticals, health supplements, and such other articles of food which the central government may notify in this behalf.
It is essential for food business operators like manufacturers, traders, and food store owners to obtain the Registration. Furthermore, there are two types of food licenses depending on the size or scale of the food business, namely, FSSAI License and Basic FSSAI Registration.
Who Requires a Basic Registration?
Every Food Business Operator like hawkers, petty retailers, etc having an annual turnover of upto 12 lacs is under obligation to be registered under the FSSAI Law. Currently, the FSSAI authority is not accepting any registration application for a Basic FSSAI License other than any Proprietor/or Proprietary food units. A Food Business Operator must take note that a Basic FSSAI is mandatory if the Business Falls in any below-mentioned Categories.
Manufacture
Procurement
Processing
Distribution
Storage
Packaging
To be more precise and elaborate, any company or an individual that operates with food substances from the manufacturing units to the serving dishes must obtain the Basic FSSAI Registration.
What are the Benefits of Getting an FSSAI License?
A basic FSSAI License is mandatory for anyone who aims to do a food business. This not only involves food preparation but also who handles food at various stages before it eventually reaches the customer like –
Raw materials,
Manufacturing,
processing,
Mess,
Canteen packing and,
The distribution as well as the agencies who have authority to sell them.
The benefit of FSSAI Registration In Delhi that helps businesses are as given below: –
Aware The Consumers : Consumers are becoming more mindful of the nature & quality of their food, which deserves to give many thanks to today’s digital world. Therefore, holding a valid Basic Registration allows for enhancing the level of food credibility and chances of businesses to improve.
Ensures Goodwill And Brand Image : The FSSAI logo can ensure goodwill among consumers, which is widely recognized in the food market.
Creates Trustworthiness : It makes food as well as quality more reliable and, trustworthy on science-based principles.
Rationalization : Streamlines all the processes occupied from manufacturing to distribution as well as the sale of the food products in the market.
Maintains Cleanliness And Hygiene : The Important facets of hygiene, cleanliness followed, regulated after the registration completed.
Expansion And Growth : FSSAI registration positively influences the production and dependability of the company. Therefore, FSSAI registration gives it a huge chance for a business to expand and grow.
Provides Quality Assurance : FSSAI is also liable for setting procedures and guidelines for the attributed labs’ quality assurance as per ISO17025. This enables the customer to think the product is safe to consume in any aspect, as well as it adheres to the guidelines prescribed by the FSSAI Authority.
What is the Checklist Eligibility for FSSAI Basic Registration?
All Small business operators in one state, registered under Basic FSSAI Registration. FSSAI certificate permitted to the state in which the business is located. The eligibility criteria for the basic FSSAI registration are as follows:-
Food business operators like wholesalers, dealers, distributors, food sellers, hawkers, bars, restaurants,
Food storage units, Dhaba, restaurants, hotels with an annual turnover of upto 12 lakhs.
Retailers with operations restricted to sell consumer items.
Small-scale manufacturers processing products.
Food Manufactures/units.
Entities that sell food except the ones serving at any social or religious gathering.
The cottage industries related to food.
Milk units carrying the dairy processing that have a capacity not surpassing 500 liters per day or have up to 2.5 tons of milk solids annually.
Slaughter capacity for not more than 2 large and 10 small cattle, 50 poultry birds per day.
Manufacture or refining in solvents and refineries of vegetable oil components, like oil expeller devices. Up to 100 kg/liters (not including milk and meat) per day.
What Documents are Required for Registration?
Following list of documents you would require for the issuance of Basic Registration:
FSSAI Declaration,
As a copy of identity proof of food business operator,
A copy of proof of possession of premise such as rent agreement,
and also MOA, AOA, Partnership deed, etc. – depending on the type of entity,
Category of food products involved,
Also, Plan of food safety management system
Note:Additionally, Documents required For Manufacturers
If you are looking for your FSSAI License Registration, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.
LUT Registration In Delhi | Fees | Process | Documents
To promote the export of goods or services, the government has provided various reliefs and benefits under GST. Exports help to create employment, achieve a favorable balance of payment situation and boost the economic growth of the country. GST law provides 2 options to exporters:- 1) Export without payment of Taxes by applying for LUT Registration In Delhi or Export Bond. 2) Export with payment of Taxes and claim a refund later.
Export Without Charging GST Using LUT – Letter of Undertaking
Generally, when an entity exports goods or services, are required to pay taxes. However, the GST law allows taxpayers to claim a refund of these taxes paid.
The GST method also offers an attractive alternative, where the taxpayer can apply for a Letter of Undertaking or Export bonds with the GST department. If the application is accepted by the department then the taxpayer is not required to pay any taxes on export, sparing the efforts for claiming a refund and avoid blocking of funds payment of taxes.
What is LUT Registration In Delhi – Letter of Undertaking
The Letter of Undertaking (LUT) is a prescribed document to be furnished in Form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfill all the requirements prescribed under GST while exporting without making IGST payment. Any person registered under GST can submit a LUT only if they have not been prosecuted for tax evasion exceeding Rs. 2.5 Crore, or for any other offense under the CGST Act, the IGST Act 2017, or any other existing law. If the exporter does not meet the LUT requirements, his privileges can be revoked and he must leave a deposit.
Please note :
Letter of Undertaking (LUT) is to be filed online before exporting any goods/services.
Benefits Of LUT And Bond
Export of good or services without having to pay taxes
Avoid the trouble refund of the tax paid on exports
Frees up working capital
LUT once filed remains valid for a period of 12 months from the date of submission.
The entire process of filing LUT, acceptance by the department online. Bond is to be manually by submit to the department.
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industries, issues IEC Registration In Delhi. Indian companies to have IEC Registration In Delhi if companies want to expand their business via Import and Export. Import-Export Code is a ten-digit code provided by DGFT, the purpose of the Import-Export License is to regulate and monitor the foreign trade in India.
For carrying out Import Export activities in India obtaining IEC registration is compulsory, without having an IEC license no involvement in import-export. Plus, if any business wants to entertain the benefits provided by the government then getting IEC registration is a must. RBI has made it compulsory for all the traders to provide their Import Export Code during any payment transfer.
In the present growing competition, businesses, in order to survive their substitutes available in the domestic market, are stepping out of their local presence. With back to back innovations and the generation of new ideas in business, the emergence of e-commerce, business operating in local limits finds it important to operate globally by stepping abroad.
There are several methods to go beyond the domestic level, such as amalgamation for foreign brands, opening franchisee abroad, starting subsidiary or branch office abroad, or through import-export business. Doing business at the global level is not that easy as it sounds.
Import Export Code (IEC) once gave can be utilized by the entity all through its existence and it doesn’t necessarily need any renewal. When the organization has gotten IEC, at that point the organization can involve in import export necessities with no issues.
Key Features
No business can indulge in Import/Export activities without taking IEC registration
It works as a proof that a firm is involve in import/export of goods and products
Once obtained, an IEC exists for a lifetime. This implies it does not require any renewal.
It is not mandatory to involve in import or export of goods for individual or legislative purposes.
IEC is obligatory for making foreign bank transfers
It is substantial for all parts of importers or exporters business.
When is IEC required?
IEC Registration Online did to import and export goods. Passes vendor code details with the port through which the imported-exported take place. Vehicle goods is confined, IEC helps in import-export code without giving the total data trading can be done .
Custom authorities will only clear your shipment as an importer if you have an IEC number.
The bank needs IEC registration in order to send money abroad
To make his shipments clear an exporter needs IEC registration at the custom port
IEC registration is needed when an exporter receives payment in foreign currency directly into his bank account
Only on the basis of IEC registration, the government of the other countries verifies the trader.
Benefits of IEC Registration In Delhi
Till now it is clear that Import Export Code is a ten-digit code which is essential for every business to obtain who wants to indulge in import-export activities. In India DGFT issues IEC. IEC Registration is the first thing that businesses need to import or export any item from India to some other nation. IEC registration paves the way for many new opportunities for the business personnel.
Here Are The Few Benefits Of Registration:
Expansion Of Business : Business can expand in the global market and export goods, products outside the nation’s territory, create a name in the international market.
Availing Several Benefits : IEC registration, businesses can enjoy several benefits given by Export Promotion Council, DGFT, and Customs.
No Need Of Return Filing : IEC doesn’t include in the filing of return. Once IEC allocated, there isn’t any necessity to follow procedures for its legitimacy. In any event, of the export transaction, DGFT doesn’t order for filing any return.
Hassle-Free Processing : Acquiring IEC from DGFT simple, get within a time of 10-15 days in the wake of the application. No evidence required for IEC Registration.
Free For Lifetime : Once obtained IEC, can enjoy its validity till eternity, free for a lifetime plus there is no need for any renewal.
Government Authorizes Proof : Import-Export Code provided by the DGFT. At the time of clearance of shipment, one can show this identity number.
Documents Required for IEC Registration
The documents needed for IEC registration are as follows:-
Scanned copy of proof of incorporation/establishment/ registration for the specified entity. This supporting document is mandatory for Registered Society, HUF, Partnership, Trust, Others.
Before understanding about MSME Registration In Delhi; it is important to know what MSME is? MSME stands for Micro, Small, and Medium Enterprises and is the backbone of the economy. MSME is the apex executive body for the implementation and administration of rules, regulations, and laws relating to Micro, Small, and Medium Enterprises. Both the Manufacturing and Service sectors can apply for Registration.
MSME Registration In Delhi is a simple and less time-consuming process for registering MSMEs and SMEs. It provides various benefits to the enterprises by providing financial support and also excess government subsidies. It helps in improving the infrastructure and in expanding the business
What are the Benefits of Availing the MSME Registration?
MSME Registration In Delhi provides various benefits to Micro, Small, and Medium Enterprises. A Few of them are mentioned below:-
Helps In Obtaining The Government Tenders: MSME assists to acquire government tenders with no trouble as Udyam Registration Portal is incorporated with Government e-Marketplace & various other State Government portals which present easy access to their marketplace & e-tenders.
Exemptions Under Direct Tax Laws: Enterprises that enclose MSME Registration can benefit from Direct Tax Exemption in the early year of business, as stated in the scheme by the Government & depending on business activity too.
Collateral Free Loans From Banks: The Government of India has authorized collateral-free credit available to all small & micro business sectors. This scheme guarantees funds to micro and small division enterprises. Under this very scheme, both the old and new enterprises can seek the benefits. The ‘Credit Guarantee Fund Scheme’ (CGS) for Micro & Small Enterprises was launched by the Government of India to make accessible collateral-free credit to the micro & small enterprise sector. Both the existing & the new enterprises are entitled to be covered under this scheme.
Exemption On The Overdraft Interest Rate: Enterprises or Businesses registered under MSME can gain a benefit of 1% on the Over Draft as stated in a scheme that varies from bank to bank.
Claim The Expenses For The ISO Certification: The registered MSME seeks the reimbursement of the operating cost that was spent for recognition of ISO certification.
Concession In Electricity Bills: This concession is accessible to all the Enterprises that have the MSME
Registration Certificate by providing an application to the department of the electricity along with the certificate of registration by MSME.
Subsidy On Patent Registration: A hefty 50% subsidy is given to the Enterprise that has the certificate of registration granted by MSME. This subsidy can be availed for patent registration by giving applications to the respective ministry.
Industrial Promotion Subsidy Eligibility: Businesses registered under MSME are also qualified for getting a subsidy for Industrial Promotion as recommended by the Government.
Protection Against Delayed Payments: Sometimes, the buyers of services and products from the MSME’s/SSIs tend to delay the payments. The Ministry of MSME lends a helping hand to such Businesses by giving them the power to collect interest on the payments that are deferred or delayed from the buyer’s side. The completion of such disputes to be done in minimum time through reconciliation and adjudication.
Special Consideration On International Trade Fairs: Financial assistance is provided on reimbursement under the International Cooperation Scheme basis to the industries/enterprises Associations and registered societies/trusts, State/Central Government organizations, and organizations connected with MSME for delegation of MSME business to other countries. It is for discovering new areas of MSMEs, contribution by Indian MSMEs in trade fairs, international exhibitions, buyer-seller meet & for holding international conference & seminars which are in the concern of MSME sectors.
Waiver Of Stamp Duty And Registration Fees: All new industrial units containing MSME Registration & expansions will be exempted from payments of Stamp Duty & Registration fees in India.
Bar Code Registration Subsidy: All Enterprises that have MSME Registration can gain Bar Code Registration subsidy as declared in the scheme.
Subsidy On NSIC Performance And Credit Ratings: Enterprises that encompass MSME Registration can gain Subsidy on NSIC Performance & Credit ratings as stated in the scheme.
Eligible For Industrial Promotion Subsidy: All Enterprises that are registered under MSME Registration qualified for Industrial Promotion Subsidy (IPS) in the scheme.
Access To Tenders: Numerous government tenders are disclosed only to MSMEs to encourage small business involvement in India.
Benefits Of Reservation Policy: It ensures increased production of consumer goods in small-scale enterprises as well as to enlarge employment opportunities throughout setting up small-scale industries.
15% CLCSS Subsidy To Purchase Of Plant & Machinery: The Ministry of MSME is operating a scheme particularly CLCSS “Credit Linked CGSTI Subsidy Scheme” for technology up-gradation of MSE. The revised scheme aims at assisting technology up-gradation of MSEs by giving a 15% capital subsidy (limited to a maximum of Rs.15 lakhs) for the purchase of Plant & Machinery.
Reservation Policies To Manufacturing/Production Sector: Reservation of items for exclusive manufacture in the SSI sector statutorily provided for in the Industries (Development and Regulation) Act, 1951, has been one of the important policy measures for promoting this text-center sector.
Who all are Eligible for MSME?
The Below-mentioned entities are eligible for registration-
All the micro, small and medium level business entities falling in the prescribed parameter, can apply for MSME in India. Apart from Micro, small, and medium level enterprises-
Public companies can apply for registration. Also, if the Company is in the manufacturing or the service sector can go for MSME Registration.
Any entity having a valid Aadhar Number as apply for MSME. As a result, the Aadhaar Number is mandatory for the issuance of an MSME Certificate.
Parameter for Registration- Under Atmanirbhar Bharat Abhiyan, the government revised the classification of MSME by inserting composite criteria of both Investment and Annual Turnover. The limit for the manufacturing and service sector are the same. The classification of Composite criteria mentioned below-
Classification
Micro
Small
Medium
Manufacturing&Service
1. Investment Less Than Rs. 1 Cr. 2. Turnover Less Than Rs. 5 Cr.
1. Investment Less Than Rs. 10 Cr. 2. Turnover Less Than Rs. 50 Cr.
1. Investment Less than Rs. 50 Cr. 2. Turnover Less Than Rs. 250 Cr.
What are the Essential Components of Application for Registration?
The essential components of MSME Application for MSME Registration are:-
Name of Individual/Entity as per Aadhar card.
Social category (General, OBC, SC/ST)
Gender
Physically Handicapped
Name and type of the Organization.
PAN Card of Individual and Enterprise
Location/Address of Plant.
Country, State, District, City, Tehsil, PIN Code
Address Proof of office.
Mobile Number and Email ID of the Applicant.
Date of Commencement of Business
Bank account number and IFSC code
Business activity of the enterprise
NIC 2 Digit Code – Based on primary activity.
Additional information of enterprise if any
Number of employees
Investment amount in Plant & Machinery
What Documents Required for MSME Registration?
Apart from the above-mentioned details, requisite documents also required for MSME Registration-
Id and Address Proof of the Applicant.
Photograph of the Applicant.
Aadhar Card of the Applicant.
Documents related to the Business entity.
Address Proof of Working premise. In the case of a Self-owned property-Sale deed required. In the case of rented property-Rent Agreement and NOC from the owner required.
Bank-related documents.
In the case of Partnership, Firm-Partnership Deed required.
In the case of Company-PAN Card, MOA, AOA, and Certificate of Incorporation
What is the fees for MSME Registration?
The fees for MSME Registration ranges from Rs. 1,000-3,000.
Reach out to Chartered Accountant’s from CA in Delhi ‘s homepage
Trademark Registration In Delhi | Documents Required | Process
Trademark Registration In Delhi has unique signs that are used to make goods or services distinguishable from others. They can be designs, pictures, signs, or even expressions. To get the protection of trademark rights, a person /entity has to apply for trademark registration.
Trademark registration helps in preventing others from copying the mark (Registered mark) and misrepresenting other products with the registered mark. Registered trademarks help the customers in recognizing the brand and the brand value at one instance.
A registered trademark is the business’s intangible asset. It acts as a protective cover of the company’s investment made in the logo or brand.
In India, Trademark registered by –
The Controller General of Patents, Designs, and Trademarks,
Ministry of Industry and Commerce, Government of India.
What are the Types of Trademark a Person can Register?
Word Marks
Service Marks
Logos and Symbols
Certification Mark
Geographical Indicators
Pattern Marks
Sound Mark
Color Marks
Three Dimensional Marks
Shape of Goods
Series Marks
Collective Trademarks
What is the Validity Period of Registered Trademark?
A registered trademark remains valid for a period of up to 10 years. Validity expires, the trademark holder shall apply for renewal. A year of the expiry of the Registered Trademark will Renew. If Non-compliance, the trademark is removed.
The Trademark registered under The Trademark Act, 1999. Trademark registration provides the right to sue against the person /entity who tries to use the registered trademark. A person cannot use a trademark already registered.
What are the Benefits of Trademark Registration In Delhi?
Registered Trademark helps the owner in availing various benefits. Below mentioned are a few of them:-
Building Trust And Business Opportunities :Registered trademark help in building trust and enhances business opportunities.
Provides Legal Protection : Registered trademark helps owner by providing legal protection i.e. if any person uses the registered trademark without the permission of the owner, he can issue a legal notice and sue them for using the registered name.
Global Registration Of Trademark : A Trademark Registration In Delhi can be filed in another country.
Exclusive Rights : The owner of a Registered Trademark enjoys exclusive rights over the trademark. She/he can use the same for all the products falling under the class (es) applied. It gives the right to sue the unauthorized use of the Trademark Registered.
Acts As An Asset : In case the brand creates a name, the registered trademark can be a valuable asset.
Builds Trust & Goodwill : The recognized the quality of your product & services are known by everyone throughout the trademark & which sets up trust and goodwill among the customers in the market. It helps in generating permanent customers who are loyal & always opt for the same brand.
Differentiates Product : Trademark Registration makes it easy for customers to find your products and provides a Unique Identity in the market. It makes your product & identity of products different from that of the already existing and foreseen competitors and acts as a competent commercial tool
. The logo of your company can communicate your quality, vision, or unique characteristic of your company.
Recognition To Product’s Quality : It gives recognition to the quality of the product. Customers attach the product’s quality with the brand name and this image is created in the market about the quality of a particular brand which helps in attracting new customers as they can differentiate the quality of a product by the logo/brand name.
Use Of ® Symbol : Once your trademark is registered you can use this ® symbol on your logo showing that it is a registered trademark & no one can use the same trademark.
It is elite of all types of usages and rights, where if someone else uses the trademark then you can also sue the party if the trademark is registered.
Protection Against Infringement : No competitor/another person can use a wordmark/logo registered by you under trademark Law.
Without approval of the trademark owner, makes misleading use, if happens then the owner can be legally protected under the Trademark Act and stop the person from doing so.
Protection For 10 Years At Low Cost : The process of Online Trademark registration is done at a very low maintainability cost. you register a trademark you have to pay the maintenance cost and renewal cost after 10 years of registering the trademark. It is cost-efficient and helps your company create a unique image.
Public Limited Company Registration In Delhi in which companies enjoy all the rights of a corporate entity with limited liabilities and is an ideal choice for small and medium scale enterprises who wish to raise equity capital from the general public.
Just like other companies, Public Ltd. The company is also registered as per the rules and regulations of the Companies Act, 2013. A Public Limited Company Registration In Delhi enjoys the benefits of limited liabilities for its members and has the right to sell its shares for raising the capital of the company.
It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.
It must have a minimum number of seven members whereas there is no limit for the maximum number of members.
It provides all the benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates any Public limited company from the private limited companies.
What is the difference between the Public limited Company and the Private Limited Company?
There are various points of difference between both these companies. Here are some chief differences between both :
Point Of Difference
Public Limited Company
Private Limited Company
Members
Minimum: 7 Maximum: No Limit
Minimum: 2 Maximum: 200
Directors
Minimum: 3
Minimum: 2
Public Invitations
Yes
No
Minimum Capital Income
No
No
Issuance Of Prospectus
Required
Not Required
Name Differences
Must have “Limited” at the end of its name
Must have PVT LTD at the end of its name
Mandatory Statutory Meeting
Yes
No
Managerial Remunerations
There are no as such restrictions
Cannot exceed the limit of 11/% of the net profit
Stock Exchange
Is listed on stock exchange and stock trade is carried out publicly.
Not listed on stock exchange neither carry out stock trade publicly.
Benefits of Registration
Here are the benefits provided to the company with Public Ltd. company registration
Limited Liabilities For The Shareholders Of The Company
Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite it, the shareholders are responsible for their legal offenses. All the members, directors, and shareholders enjoy this right and their assets cannot be seized by any bank, creditors, or government bodies.
Perpetual Succession
A public limited company is considered a corporate body that has perpetual succession. This means in case of death, retirement, insanity, and insolvency of one or more members/shareholders/ directors, the company continues its existence.
Improved Capital Of The Company
In a public limited company, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.
Borrowing Capacity
A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most financial institutions find public companies more prominent than other unregistered companies.
Fewer Risks
Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.
Better Opportunities For Growth And Expansion Of The Company :
Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.
What are the basic requirements of Online Public Ltd. Company Registration in India ?
According to the provisions of the Companies Act, 2013 here are the requirements you need to fulfill to incorporate a Public company in India:
The proposed company must have a minimum number of 7 shareholders
The proposed company must have a minimum number of 3 directors
No minimum capital required
At least one director should have a Digital Signature Certificate
Memorandum of Association and Article of Association.
After approval from the Registrar of the Companies, the proposed public company has to apply for the “Certificate of Business Commencement.”
Documents Required for Public Limited Company Registration
Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders.
Address Proof of all the proposed directors and shareholders of the company.
PAN card details of all the directors and shareholders
Utility bills such as telephone, gas, water, or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.
A NOC or No Objection Certificate from the landlord of the business place.
DSC or Digital Signature Certificate of the designated directors
To get start with Public Limited Company, reach CA in Delhi homepage.
Sole Proprietorship In Delhi| Process | Documents Required
A Sole Proprietorship In Delhi registration is a type of enterprise in which a business is owned and managed by an individual. In a sole proprietorship business, there is no legal difference between the owner and the business. To put it in another way a sole proprietorship is not a legal entity, where an is responsible for clearing off the debts of the business. The sole proprietorship is a preferable and popular business form. It is simple and easy to form a nominal cost.
A Sole Proprietorship In Delhi is a convenient and simplified way to commence a business in India. It is neither considered as a corporation nor a company where the business is owned by a single person who is the owner/director/shareholder of the proposed entity. Some common examples of proprietorship businesses are shops such as chemists, saloons, groceries, etc. An individual who wishes to sell his/her products or services can run their business as a sole proprietor and can enjoy the rights provided to a registered legal company. Most of the entrepreneurs find it as an ideal business entity and have registered their business under it.
The loss or profit of the company is considered as the loss or profit of the individual and the income of the company is considered as the income of the owner as per the Income Tax Act.
Options Available For Registration
Registering a Sole Proprietorship In Delhi business is a digital process that can be accompanied by the help of an expert. However, a person interested in registering as a sole proprietorship requires fulfilling some basic requirements like opening a bank account in the name of the business entity, etc.
Registration through Udyog Aadhaar under Ministry of MSME
Individual requires registering as an SME (small and medium enterprise) as per the provisions of the MSME Act. For it, you have to submit an online application. A Udyog Aadhaar is a unique identification number offered by the Ministry of MSME to business owners. Even a sole proprietor can apply for a udyog aadhaar along with all other entities such as company and partnership. However, it is not compulsory but is beneficial for the company, especially during the time of loan requirement at a low-interest rate. The government has launched various schemes for the improvisation of Sole Proprietorship Registration under the MSME act.
Shop And Establishment Registration
Individuals must have shop and establishment licenses as per the local laws. It is issued by the municipal parties based on the number of workers/ employees in the firm. Here, shop means any premises:
a place where goods are sold, either by wholesale, retail, or
a place from where services are offered to customers.
It includes an office, godown, a store-room, warehouse, or workplace, whether in similar premises or otherwise, which is used in connection with such business/trade.
It does not include a factory, a residential hotel, commercial establishment, restaurant, eating house, theater, or another place of public entertainment or amusement;
If you have a shop under the definition given above, then you can register your sole proprietorship business by making an application to the local Municipal Corporation of your city under the Shop and Establishment Act.
Registration Under GST
GST registration is mandatory to carry business activities in India. Even if you are doing online business, you would require a GST number. GST registration is another way to get your sole proprietorship business registered. If you are dealing in any kind of exchange of goods and services then you can apply for GST registration. It is a great method of getting an identity concerning your sole proprietorship. However, certain important considerations must be evaluated before opting for this method.
Every registered business has to compulsorily collect the tax from the customers & file the GST returns periodically. He doesn’t need to get registered & collect GST if a sole proprietor has a turnover of lesser than Rs. 40 Lakhs (subject to few exceptions)
PAN Card of the proprietor
Aadhar Card of the proprietor
Passport size photograph of the proprietor
Office proof
Bank Statement copy that contains the bank account number, IFSC code, and address
Trademark Registration
Trademark Registration is required in case you wish to trade your goods or services with a special name or brand. It is profitable where there is a threat of some misuse of the name or mark used in your business.
License/Certificates Required According To The Nature Of Business
Drug license
Regional Transport Office(RTO) permit
Mandi license
Labour license
FSSAI license registration -Food Safety and Standards Authority of India
Certificate issued by the Institute of Chartered Accountants of India, etc
An individual can select any of the below-given options for the registration:
A Sole Proprietorship In Delhi Registration is one of the best choices for entrepreneurs who wish to handle everything on their own. It is the most common form of business entity, where the small business owners generally start their businesses as Sole Proprietorship only. The benefit of a Sole Proprietorship Registration can be classified under two categories: those are 1) Entity type benefits 2) Registration benefits.
Fewer Compliances
Easy to start
Cost-Efficient
Absolute Control
Ease in opening the bank account in the name of the business
Separate Business Identity
Provides flexibility in carrying out business activities
Easy to start and close
Hassle-free business structures with very few compliances
Self- Accountability
Being your Boss
Decision-making power
Don’t have to share your income and profits with anyone
No disputes between the Members
Benefits of Registration
Simplest Form Of Business : We generally come across various shops in our local places carrying out small business operations. They are the Sole Proprietorships who do not involve any complexities & can easily behold by a single person.
Easy To Start : You must note that Sole Proprietorships do not need mandatory registrations under the eye of law. They only require licenses or registrations specific to the nature of a particular business. Therefore, any person can start his/her business very easily with a trading name of their own choice. Any trade name can be used until and unless it does not infringe with any brand name.
Require Lesser Investment : Sole Proprietorships’ business needs a minimal amount of investment to start at the initial phase. Therefore, it is a great opportunity for that entrepreneur who wishes to set up a business with low investments as no minimum capital is prescribed for starting a Proprietorship business.
No Sharing Of Earned Profits : The sole proprietor is the only person who manages and operates the whole business, which means that 100% of the profits belong to only him/her. It is profitable to note that no one else is entitled to a share in the profits earned.
Minimum Legal Compliances : It is important to note that the sole Proprietorships are not administered by any specific law; therefore the legal compliances are automatically minimal by their nature. They do not need to avail the Certificate of Incorporation or Registration Certificate from the concerned authority. Subsequently, the compliances depend upon licenses or registrations taken by a specific sole proprietorship. To make it simpler, sole proprietorship have to comply with the GST return filing if it registers itself under GST law, or any other related laws. Therefore, there is no such obligation of uploading the Annual report or other reports on the website of the Ministry of Corporate affairs.
Minimum Income Tax : In general, no separate tax is needed to be paid because the Sole Proprietorship involves only a Sole proprietor. Sole Proprietorship and the Sole proprietor are meant to be the same or the purpose of calculation of tax liability. The assets & liabilities of the Sole Proprietorship are the assets as well as the liabilities of the Sole Proprietor. By the Income Tax Act, the sole proprietor is needed to file his/her IT returns, showing the profits earned in the business in that IT return itself. It must be noted that the tax is calculated at income tax slab rates as applicable to an individual, therefore any separate return is not required for the Sole Proprietorship firm.
Information Remains In Private Hand : Unlike Limited Liability Partnerships, Companies, etc. where audit reports and financial statements are made public for the users via the MCA (Known as Ministry of Corporate Affairs) portal, the financial reports of Sole Proprietorships remain in private hands. Also, the list of all sole proprietorships is not easily available with the Government officials/websites.
Own Decision Making : It is important to note that there is no chance of a conflict of ideas or any sort of decisions since the Sole Proprietorship is managed & operated single-handedly. Sole Proprietors has the sole right to do whatsoever he/she thinks to do is correct for the business.
No Requirement For Audit : Sole Proprietorship is not obligatory to get its accounts audited in every financial year under the eye of law. However, the audit will depend upon the nature of the business & the threshold turnover limits that have been specified for the conduct of the audit for that particular firm.
Documents Required for Sole Proprietorship In Delhi
Aadhar Of The Proprietor: The proprietor of the proposed firm has to submit a scanned copy of his/her aadhar card. Aadhar card is required to register any business in India. A person cannot file an Income-tax return unless his/her PAN card is linked with an aadhar card. In case you don’t have an aadhar card or its information does not match with a PAN card, get it corrected before the submission.
PAN Card Of The Proprietor: In addition to the Aadhar card, a PAN card is also a mandatory document for a proprietorship business registration. PAN card is issued by the Income-tax department t of India which contains a unique PAN card number. All the details of the prerequisite documents should match with the details of the PAN card.
Current Bank Account Details: If the proprietor owns a PAN and Aadhar card, then he is liable to open a bank account in the name of his company. In addition to these documents, he would require identity and address proof. Documents regarding GST registration are also required to open a current bank account.
Office Proof: A proprietor can carry out his business activities at any owned or rented place. He has to provide proof of his registered office, documents worked as proof are: In case of owned property: any utility bill such as electricity bill, gas bill, water bill, etc. along with the NOC. The bill should not be older than two months in case of Rented property: lease/ rent agreement along with the NOC from the landlord. Additionally, few registrations given as follows are required for the registration purpose of the proposed firm:
SME Registration: Individual requires registering as an SME (small and medium enterprise) as per the provisions of the MSME Act. For it, you have to submit an online application. However, it is not compulsory but is beneficial for the company, especially during the time of loan requirement at a low-interest rate. The government has launched various schemes for the improvisation of SMEs registered under the MSME act.
Shop And Establishment Registration: Individuals must have a shop and establishment license as per the local laws. It is issued by the municipal parties based on the number of workers/ employees in the firm.
Registration Under GST: GST registration is mandatory to carry business activities in India. Even if you are doing online business, you would require a GST number. GST registration can be done in 5 working days with the following documents:
PAN Card of the proprietor
Aadhar Card of the proprietor
Passport size photograph of the proprietor
Office proof
Bank Statement copy that contains the bank account number, IFSC code, and address
Post Compliances :
One has to file annual Income Tax returns on time.
One has to file his GST in case they have GST registration
If liable for TAX audits, the individual should deduct TDS (tax deducted at source) from employees income and file TDS returns
FAQ- Frequently Asked Question
Who can start a Sole Proprietorship?
Any Indian citizen with a current account in the name of his/her business can start a sole proprietorship. Registration may or may not be required, depending on the type of business that is planned to be established. However, to open a current account, banks typically require a Shops & Establishments Registration.
How long does it take to establish a business with Sole Proprietorship?
A Sole Proprietorship business does not take more than 15 days to set up and start functioning. This simplicity makes it popular among small traders and merchants. It’s also much cheaper, of course. This is the other reason why it’s the most widely used business structure.
What businesses are commonly run as Sole Proprietorships?
Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorships, they can! Jewelry shops are sole proprietors, but it is not recommended.
Aside from a current account, is there no need for any other registration?
This depends on the business you’re in. It is compulsory for any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs in the case of North-Eastern states) to get a GST registration. For businesses that are involved in selling goods or services to customers out of a commercial establishment, it is mandatory to register under the Shops and Establishments Act.
Is it cheaper to run an LLP than a private limited company?
Yes, it is much cheaper to run an LLP than a private limited company. Mostly because compliances, such as an audit, apply to LLPs only after their turnover is sizeable. Most LLPs spend about half as much as private limited companies, in their first year on registrations and compliance work.
What if I wish to convert from Sole Proprietorship to Private Limited Company or Partnership?
The procedure involved is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships or private limited companies at a later stage of their businesses.
To get started with Sole Proprietorship, reach out to Chartered Accountants on CA in Delhi‘s homepage
A partnership firm is a business structure in which two or more individuals manage and operate a business by the terms and objectives set out in a partnership deed that may or may not be registered.
A Partnership Firm Registration In Delhi enables a well-recognized business structure formed with the mutual consent of all the partners for a profitable purpose. The firm is managed, owned, and controlled by a set of people that are known as partners and have some shared capital in the firm. A partnership firm is done under the Partnership Act, 1932 with very little documentation and formalities.
Partnership firms are distinguished as registered and non-registered firms. It is not mandatory to register but it is advisable to do so. The firm offers various benefits that do not apply to non-registered ones.
Basic Clarification
An association of two or more people who have decided to indulge in business activities is regarded as a partnership firm. The motive of such an organization is to earn profit. Members of such a partnership firm are called partners. All the partners share the profits and losses in the proportion of their respective owners.
In a partnership firm, the amount of money contributed is often huge because each partner can contribute to the total amount of capital required. The decision-making process in a partnership firm is a collective business. Every partner should be on the same path before taking any decision. Without firm registration, two partners cannot start their business venture.
Things to Consider While Naming the Partnership firm
As long as you satisfy the below-mentioned terms & conditions, any name can be given to a partnership firm. The conditions are given below:-
The name shouldn’t be too identical or similar to an existing firm operating the same business actions,
The name shouldn’t contain words like a crown, empress, emperor, empire, or any other words which show approval or sanction of the government.
Benefits of Partnership Firm Registration in Delhi
Easiest Business Structure : Partnership firms are one of the easiest business structures that can be started by formulating a partnership deed for which is necessary. Hence it can be started when the partners are ready and with minimum documentation, whereas other firms require at least 10-15 days covering up all the formalities like obtaining DSC, DPIN name approval, etc.
Ease In Decision Making : It’s easier and faster to decide on a firm registration as you don’t have to follow regulations to pass a resolution. A partner can perform transactions on behalf of the firm without any consent of other designated partners.
Raising funds : Incompetence to other firms such as proprietorship firms, funds can be easily raised in a partnership firm. Multiple partners are capable of making a more feasible contribution. It must be noted that banks consider a partnership firm more favorable for sanctioning credits and loans.
Easy Management Without Any Disputes : All the partners are assigned works and responsibilities as per their capability, as mentioned in the partnership deed. Partnership deed helps in avoiding any type of conflicts between the partners.
Ability To File Case Against Third Parties : The designated partners of the registered Partnership Firm can file a case against Third Parties to resolve disputes that have been aroused during business operation or any other case relating to the Partnership Firm in India. You must also note that any unregistered Partnership firm loses the right to file the case against a third party to resolve any disputes till the procedure of Partnership Deed Registration has been completed.
Can File Suit Against Co-Partners : It is evident in the contemporary world that the Court of Law best resolves the resolution of any dispute as no one knows when the dispute between the Partners may arise in terms of the sharing of profits or any other case relating to the operations of the Partnership Firm. In continuation to the above said, the Partners of an unregistered Partnership Firm cannot enforce any clauses of registered Partnership Deed.
Ability To Claim Set-Off : After availing of the Firm Registration, the partners enjoy the right power to claim set-off. If there is any claim against a third Party, Partnership Firm can claim the set-off when any third party files a suit against the registered Partnership Firm. This particular power of claim set-off is not available when the Partnership Firm is unregistered under the Act, Indian Partnership Act, 1932.
Enjoys Higher Credibility : A Partnership Firm that has completed the procedure of Online Registration of Partnership Firm enjoys higher credibility in comparison to an unregistered Partnership Firm. Even though, both registered and unregistered Partnership Firms are legally valid under the given Act Indian Partnership Act, 1932, the Registered Firm is highly referred in continuation by authorities over unregistered ones.
Easy Conversion Of Entity : The conversion of the registered Partnership Firm into any other establishment such as a Private Company or Limited Liability Partnership, which are broadly known as the corporate structure, can be easily accomplished.
Documents Required for Partnership Firm Registration In Delhi
Partners need to submit the documents when they are registering the partnership firm, such as partnership deed, PAN Card of Firm, Address Proof of Partners, Office Address Proof, GST Registration, Current Bank Account along with an affidavit certifying all the details mentioned in documents and deed correctly.
Partnership Deed: A partnership deed is a kind of agreement formed within the partners which defines their rules, duties, methodology, functions, and shares. It helps to avoid future conflicts and disputes between the partners. It is created and signed by all the members on the Judicial Stamp Paper that costs around Rs. 2000/-
PAN Card Of Partners: All the designated partners of the firm are required to submit their PAN cards as proof of their identity.
PAN Card Of Firm: Designated Partners of the Firm need to apply for PAN card of the firm. They have to file Form 49A to apply for a PAN of the firm. They should visit – https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html In case of the authorized partner signs the application using a DSC, it can be filed in the online mode also. Besides, the application along with the requisite documents must be sent to the nearest PAN processing centers accessible across the country.
Address Proof Of Partners: All the partners have to submit a copy of their address proof which can either be their aadhar card, voter id, ration card, driving license, etc. The address and details given in the document should match PAN card details.
Office Address Proof: Address proof of the respective working place has to be submitted. In the case of rented property, an applicant has to submit a rent agreement along with a utility bill such as electricity, water, gas bill, property tax bill, etc. Apart from it he/she has to submit the No Objection Certificate (NOC) from the landlord. If the place is owned by any partner or partners then the applicant has to submit a utility bill along with a NOC.
GST Registration : firm needs to submit a PAN card number, address proof of the firm, and identity & address proofs of the partner to obtain GST registration. The authorized signatory will sign the application either using DSC or E-Aadhar verification.
Current Bank Account : The firm needs to submit the following documents for opening a current bank account, which is as follows:-
A partnership firm is a business structure in which two or more individuals manage and operate a business by the terms and objectives set out in a partnership deed that may or may not be registered.
Is a partnership firm a separate entity?
The partners in a partnership firm are the owners and thus are not separate entities from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners.
How many partners can there be?
A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners. These partners can divide profits and losses equally or unequally.
How much time does it take to register a partnership firm?
The registration of a partnership firm in India can take up to 10 to 12 working days. However, the time taken to issue a certificate of incorporation may vary as per the regulations of the concerned state. The registration of a partnership firm is subject to government processing time which varies for each state.
What are the minimum and the maximum number of partners required for the formation of partnership firms in India?
A minimum of 2 persons and a maximum of 20 is required for the formation of a partnership firm.
Who can be the partners in a partnership firm?
The individuals who are residing in India can only become partners or members of a partnership firm. Foreign individuals who want to form their business in India can choose private limited companies.
What is the capital amount needed for the partnership firm registration in India?
There is no minimum capital requirement for the registration of a partnership firm in India.
Are there any grounds on which my partnership can be invalid?
Often, if the partnership agreement is not registered, the court may deem a partnership invalid. If the object of the business is illegal, the court may consider the partnership invalid and dissolve the partnership.
What is the scope of liability when it comes to partnerships?
Every partner is jointly and severally accountable for any acts/activities of the firm committed throughout the course of business while he or she is a partner. This means that if a third party is injured or a penalty is imposed during the course of business, all partners will be held accountable, even if one of the partners caused the injury or loss.
If you want to get started with Partnership Firm Registration in Delhi, reach out to Chartered Accountants from CA in Delhi‘s homepage
Registration of Section 8 Company In Delhi| Documents Required
What is Registration of Section 8 Company In Delhi
Section 8 Company In Delhi under the Companies Act, 2013 as a Non-profit organization. As we all know NPO can be registered as Trust by executing a Trust deed or, As a society under the Registrar of Societies, or, As a non-profit company under Section 8 Company of the Companies Act, 2013.
Registration of Section 8 Company is the most popular form of Non-profit organization that is established for the-
Promotion of commerce,
Art,
Science,
Sports,
Education,
Research,
Social welfare,
Religion,
Charity,
Protection of environment or any such other related object”.
In layman, a Section 8 company must promote public welfare and the income generated by the company can only be used to support the stated public cause(s) only.
What are the Consequences in case of Non-Compliance is done by Section 8 Companies?
Every Section 8 company needs to follow the compliance levied by Income tax authorities and Registrar of Companies. If the company fails to satisfy the requisite compliance, it can cause heavy penalties up to Rs 1 lakh in a year.
What if the Company gets Registered under Section 80G?
If a Registration of section 8 company under section 80G then the individual or entity donating to the Non-profit company will get a deduction of 50% from their taxable income.
As per the Finance, Act 2020, the amendment was made i.e. With effect from first June 2020, All the existing charitable and religious institutions (including NGOs) which are registered or approved under the following sections-
1. Section 12A
2. Section 12AA
3. Section 10(23C)
4. Section 80G
These are compulsorily required to switch to section 12AB for fresh registration to continue availing exemption under section 10 or 11.
What Annual Compliances are required to be made for Section 8 Companies as per the Companies Act 2013?
Section 8 companies are required to comply with the Annual Docility as per the Companies Act 2013-
Benefits of Registration of Section 8 Company In Delhi
Numerous benefits are provided to Section 8 Company. Few are mentioned below:-
No Minimum Capital : In the Registration of section 8 company , there are no minimum capital criteria.
Avail Tax Benefits : Various tax exemptions and compensations are provided to the company as well as to the donors who are contributing to Section 8 Company.
Exempted From Payment Of Stamp Duty : No stamp duty is required on the Section 8 Company registration as the company is exempted from the payment of stamp duty applicable for registration.
Separate Legal Identity : Section 8 Company has a separate legal entity as private/public company and has a distinct legal personality from its member.
Credibility : Section 8 Company has more credibility as compared to any other form of a charitable organization.
Transfer Of Ownership : Members of Section 8 Company members can easily transfer the ownership of the company.
What are the Checklists to be Considered while Registering a Section 8 Company ?
Following factors are to be considered while registering Section 8 Company :-
The Company may be registered as a company limited by shares or by Guarantee and not with unlimited liabilities.
It can be a holding company of another company and can promote another company.
The company cannot be amalgamated with a company that is not a Section 8 company.
There must be at least 1 meeting within every six-calendar month.
Non-applicability of Section 149(1), Section 178 of Companies Act, 2013
Secretarial Standards are not applicable.
No proxy by the members.
What are the Documents Required for Registration of Section 8 Companies?
Below-mentioned documents are required for Registration of Section 8 Company :-
The Articles of Association
Memorandum of Association
Declaration by the subscribers and by the directors
A confirmation for the address of the office
Two months utility bills copy
Certificate of incorporation of the Outer Country body corporate [If applicable]
A resolution passed by the global Company [If applicable]
A recommendation declared by the promotional Company [If applicable]
The interest of the directors from other entities [If applicable]
Nominee’s assent
Identity proof and residential address of the subscribers and the nominees
Identity proof and residential address of Applicants
The Declaration/Resolution of the unregistered companies
DSC (Digital Signature Certificate)
Any other document [If required]
Get started with Section 8 company by reaching out to Chartered Accountants on CA in Delhi‘s homepage
One-Person Company Registration In Delhi | Documents Required
A One-Person Company Registration In Delhi is that has only one person as a member. OPC Registration was introduced to encourage individuals who are capable of starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and avail the benefits of a Company. It is a business structure that enjoys the benefits of both forms of business i.e. a Sole proprietorship and a company. Thus, it eliminates the hassles of finding the right kind of co-partner/s for starting a business as a registered entity.
As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and Start-Ups.
Benefits of One-Person Company Registration In Delhi
One Person Can Start The Business : Under OPC, one person can start the business with very little compliance. Due to fewer compliances, a person gets more time to focus on his business and key areas.
Complete Control By The Individual : The control remains in the hand of one person only.
Limited Liability : In case of One Person Company, the member of OPC has limited liability.
Separate Legal Entity From Its Member : Being a company, OPC has a separate legal existence from its member.
Easy Compliance And Tax Flexibility : An individual has to follow easy compliance and avails the benefit of tax availability too.
Benefits For Small Scale Industries : OPC avails the benefits provided to Small scale industries like easy funding, less compliance, loans at a lower interest rate, etc.
What are the Eligibility Criteria for One-Person Company Registration?
A natural person can form OPC who is a resident of India in the preceding calendar year.
Only 1 member can form an OPC.
The Name should be unique and should not be similar to any other existing company and trademark.
An individual cannot incorporate more than 1 OPC or
An individual cannot be the nominee of more than 1 OPC.
There must be a least 1 director.
In the case of OPC, the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.
One Person Company must include in its name (OPC) Private Limited.
Pre-condition to indicate the name of the other individual as a nominee. As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.
What Documents are Required for OPC Registration?
Below-mentioned documents are required for OPC Registration:-
For DSC Application
Passport size photo of the applicant.
Copy of Id and Address Proof.
Email Id and Phone number
Specimen Signature
Documents Required For SPICe+ Form
Identity proof
Address proof & Identity proof and of the nominee and the subscriber
Note-For Residential proof, the applicant can provide any of the following documents:-
Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)
Copy of Rent agreement and No-objection Certificate from the property owner.
If the property is owned-Copy of the sale deed.
Memorandum of Association and Articles of Association
Declaration by the Subscribers and Directors
Proof of Office Address
Copy of Electricity or Utility Bills. However, it should not be older than 2 months.
Nominee’s Consent in Form INC-3
Disclosure of Director’s Interest and any other document (if required).
FAQ- Frequently Asked Question
Who can register for an OPC?
OPC company registration can be done only by Indian residents, and that too only one at a time, as per the specifications of the Ministry of Corporate Affairs.
What are the mandatory requirements of an OPC?
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.
How much capital is required to start an OPC?
There is no difference in capital requirement between an OPC and a private limited company. It needs an authorized capital of ₹1 lakh, to begin with, but none of this actually needs to be paid up. This means that you don’t really need to invest any money into the business.
What are the tax advantages available to an OPC?
No general advantages; though some industry-specific advantages are available. Tax is to be paid at a flat rate of 30% on profits, Dividend distribution tax applies, as does minimum alternate tax.
How much does it cost to run an OPC?
The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around ₹12,000 to incorporate, then paying around ₹15,000 a year in compliance fees and an auditor to inspect your books.
How many directors can there be in an OPC?
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offering employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director and can be anyone, such as your spouse, parents, or siblings. The nominee will need to provide identity proof during registration.
Can I start more than one OPC at a time?
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.
If you want to get started with OPC Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage
