STARTUP COMPANY REGISTRATION
You must first incorporate your business as a Private Limited Company, Partnership firm or a Limited Liability Partnership. You have to follow all the normal procedures for registration of any business like submitting the registration application and obtaining the Certificate of Incorporation/Partnership registration.
You can incorporate a Private Limited Company or a Limited Liability Partnership (LLP) by filing the registration application to the Registrar of Companies (ROC) of your region. You can establish a Partnership Firm by filing the application for registration of your firm with the Registrar of Firms of your area. You need to submit the required documents and fees to the Registrar of Companies or Registrar of Firms along with the registration application.
STARTUP INDIA REGISTRATION
Startup means an entity, incorporated and registered in India
- As a Private Limited Company or Limited Liability Partnership or Registered as a Partnership Firm.
- With an annual turnover not exceeding Rs. 100 crores for any of the financial years since incorporation/registration.
- Working towards innovation, development or improvement or of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
- An entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
- Shall not be more than 10 years old for Startup recognition OR not incorporated before April 2016 to claim Tax Exemption certificate.
An entity shall cease to be a Startup,
- On completion of 10 years from the date of incorporation/registration.
- If its turnover for any previous year exceeds Rs. 100 crore
STARTUP TAX EXEMPTION APPLY
After getting a DPIIT Certificate (Startup Recognition Certificate), a Startup is eligible to apply for Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first 10 years since incorporation.
Eligibility Criteria for applying to Income Tax exemption (80IAC):
- The entity should be a recognized Startup.
- Only Private limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC.
- The Startup should have been incorporated after 1st April, 2016.
If You are running a Pvt Ltd or LLP but does not have DPIIT Startup Certificate, then Step 1: Apply DPIIT Startup Certificate.
Step 2: Apply for Tax Exemption.
GST COMPLIANCE IN INDIA
Goods and Services Tax is very important part of business in India today. As only one Tax is apply on all sale of Goods and Services on B2B and B2C.
Post Registration of GST, various compliances are,
- Tax Computations and ITC Adjustment in Books
- Monthly Tax deposit
- Monthly/Quarterly/yearly Return Filing
- Matching and availing Input Tax Credit (ITC) on Return
- Check updated balance status on Electronic Ledger on GST Postal
- Uploading correct Invoice details on GST Portal etc.
- Any subsequent amendment in GST Registration
- Ensure correctness of GST Rate and HSN code on products
- GST Accounting and its treatment in Profit and Loss Statement and Balance Sheet.
- Stay updated with latest Notifications, Circular and Rule issued
Delay Deposit of Tax attract Interest @ 18% pa and delay return filing cost penalty per day Rs 20/50.
TDS COMPLIANCE IN INDIA
Tax Deducted at Source (TDS), Tax Collected at Source (TDS) and Business Income Tax Return (B-ITR) are 3 important Prime Direct Tax Compliance which every Firm/LLP/Company doing business in India has to comply and follow the Income Tax Act and Rules and Act regulating Tax Deduction on payment of certain specified expenditures namely Salary, Interest, Rent, Dividend, Commission, Brokerage, Professional Fee, Royalty, Compensation, Advertisement, Contract Works and Payment made to Non Resident/Foreign Companies. TDS deduction rate varies expenditure wise as mentioned in Sections 192 to 196D of the Income Tax Act
Tax Collection at Source (TCS) - Under section 206C of the Income Tax Act, tax has to be collected at source on sale of Category A, B, C & D goods (namely Alcoholic Liquor, Timber, Minerals, Coal, Iron Ore, Parking Toll, Toll Plaza, Jewellery, Motor Vehicle Valued exceeds Rs 10 lakhs, etc.)
ROC COMPLIANCE IN INDIA
Post incorporation of a company, regular compliances varies as per nature of companies (One Person Company, Private Limited, Limited Company) and day to day business activities. More or less few mandatory regular compliances every company has to meet with ROC on time throughout the year
Delay comply shall attract penalty up to 12 times of normal fee and Now a days consecutive 3 years non- filing likely get chances for strike off by ROC and Directors Disqualifications from all other companies.
Basically, there are two type of Compliances in general practice
Auditors Appointment, Annual Return Filings etc.
Changes in Capital, MOA/AOA Amendment, Registered Address changes, etc
ACCOUNTING AND BOOK MAINTENANCE
Many people use the terms book keeping and accounting interchangeably, but the fact is the former is the first step to the latter, i.e. book keeping is the stepping stone of accounting.
Book keeping is an activity of recording the financial transactions of the company in a systematic manner. For example, Transaction day book, Journal and Ledgers.
LEGAL REQUIREMENTS- Various Law Regulating the business and Taxation in India has put legal compulsion to main Books of Accounts as per Law and Guidelines.
- Under Income Tax Act
- Under the Companies Act 2013
- Under GST Act
Books of Accounts to be preserve for at least 6-8 years under the provisions of different Acts in India.
INTELLECTUAL RIGHTS- TRADEMARK
A Trademark distinguishes your goods or services from another same line business or your competitors and can take many forms; for example, words, slogans, logos, shapes, colors and sounds. By trademark registration, you own legal right to use the Brand name or Logo and can put restriction on others from using the same.
Trademark is registered for specific goods or services within individual subjects, known as classes. This should not be descriptive and must not include common surnames, geographical names, registered company names or anything implying royal patronage.
INTELLECTUAL RIGHTS- COPYRIGHT
Copyright, a form of intellectual property law, protects original works of authorship including literary, dramatic, musical, and artistic works, such as poetry, novels, photograph, Painting, a speach, movies, songs, source code of a software program, the binary executable file, Website, Mobile App, and architecture.
It registration with IPR Authority essentially ensures that any creative work cannot be copied without the permission of the author or creator. This allows the author to charge others for copying his work, or modifying it, or building on top of it. For example, downloading an image from Shutterstock and using it on your own website without purchasing or taking on rent is violating the copyright of Shutterstock. Shutterstock can file a suit against you to claim its value of the image.
FUNDING PITCH PREPARATION
An elevator pitch is a short, consistent synopsis of your business, usually in just a few sentences. Perhaps surprisingly, getting your pitch to be short and consistent can be pretty difficult. Although the amount of content you need to create is tiny—just a few sentences—the amount of thought that goes into it is extraordinary.
PROJECTION AND INVESTOR PRESENTATION
The most essential financial projections for an investor pitch deck are the income statement, cash flow statement, and balance sheet. The income statement reveals revenue, expenses, and profit or loss for a given period of three to five years.
VIRTUAL CFO AND ADVISORY
There is a manifold growth in responsibilities that keep adding to your workload with the increase in business. This then leaves gaps in many places in your business process. It also brings the challenge of having expertise on board, but you might not want to hire a full-time CFO because of the financial commitment, risk, or long-term implications. This is where a Virtual CFO comes to your rescue. Virtual CFO is of great advantage to startups as well. Virtual CFOs for startups provide the promoter with the much-needed financial strategic advice while incurring high costs.
Having an outsourced CFO can be very beneficial for small businesses and startups alike. While hiring an outsourced CFO, you must ensure that they are well versed with the financial nitty-gritty of the industry your business belongs to
SHAREHOLDERS AGREEMENT
A shareholders' agreement is an arrangement among a company's shareholders that describes how the company should be operated and outlines shareholders' rights and obligations. The shareholders' agreement is intended to make sure that shareholders are treated fairly and that their rights are protected.
DIESEL DELIVERY SARTUP REGISTRATION
On Demand FUEL DELIVERY - Online Fuels booking is very popular Startups in developing countries like USA, UK, etc.
With start of the Govt of India initiative now Oil marketing Companies (OMCs) are considering recognized Startups to apply for "DDD Resellers" by signing an Agreement with the concerned OMC ( ex- IOCL or BPCL or HPCL) . Such start-ups is also called as "FuelEnts" (Fuel + Entrepreneurs). Eligible Start-ups registered as “DDD Resellers” will be able to procure HSD directly from supply locations of the OMC or its Retail Outlets, having facility for loading of such Mobile Dispensers. Hence the Startup must have their own PESO compliant Dispenser. THIS IS B2B Business only.
There is a considerable demand of HSD for stationary equipment like generator sets, earth moving equipment, heavy machineries used in construction sites, mobile towers, etc. and these may not have facility
/ resource to store HSD. There is a demand from such customers for delivering HSD at their door steps.
DRAFTING WEBSITE T & C PRIVACY POLICIES
A Privacy Policy should be clearly and conspicuously displayed on a website. Your footer should include a link to the Privacy Policy. This link should not have any other policies/information on it. The link should be a different color, font and font size than the surrounding text to make sure that it is visible.