Business Establishment Services
Any person interested in setting up a business would like to know which form of business organization suitable for his business. The choice defends on factors like, flexibility, funding, nature of business, risk factors, taxation etc. ADCA advices its client on choosing the right form of business organization based after considering all relevant facts.
ADCA provies services of registering up following form of business organization
- Private limited, Limited Companies.
. Limited Liability Partnerships (LLPs)
Once business entity is registered , it has to obtain various other registraitons, based on its nature of business. ADCA provides the services of obtaining below mentioned post incorporation registraions :
PAN (Permanent Account Number) is the Income Tax Identificaiton Number, PAN is required to be applied before opening the Bank account. Indirect Tax registration like VAT, Service Tax, Excise Registration, Import Export Code ( IEC) are all based on PAN, hence it is mandatory to obtain PAN before applying indirect tax registration.
TAN is a number required to remit tax witheld from vendors and employees. Company can have multiple TAN for each location.
Service tax registration is required to be obtained once the billing for taxable services exceed Rupees nine lakh in a year, and company need to charges service tax on billing exceeding Rupees Ten Lakhs.
VAT Registration is application if the business involves selling of goods. It is a state based registration, so a separate registration required to be obtained for each state in case goods are sold from such state.
There are two type of Profession tax applicable for Business Entity,one is PT applicable to business entity, which is amount fixed as per PT Act, which varies from Rs 1,000 to Rs 2,500/- per annum required to be deposited every year by April 30th, as per the Karnataka PT Act. Also a business entity employing employees is required to deduct PT at applicable rates from employees and deposit with goverment. As per Karnataka PT Act, Rs 200 need to be deducted from employee drawing gross salary of Rs 15,000 or more and deposited every month with goverment. Two separate registration required to be obtained for one for business entity PT and another for Remitting Employee PT.
Provident Fund registration is required to be obtained if the number of employees exceeds twenty. ESI ( Employee State Insurance) is required to be obtained if the number of employees exceeds ten and applicable on employees drawing less than fifteen thousand per month.
Central excise is applicable on manufacture of goods. Exemption is applicable for a turnover of Rs 1.5 cr, once the turnover exceeds Rs 1.5 cr, business entity need to apply for excise registration.
Shop & Establishment Registration is a labour law registration, Every business entity ( other than a factory) employing any employees is required to obtain shop & establishment registration and follow the rules presecribed under shop and establishment act.
For sectors where FDI allowed under approval route, the business entity need to obtain prior approval of FIPB ( Foreign Investment Promotion Board). There are also statutory filing to be done with RBI towards FDI under the approval Route.
Invesment in business entity from outside india is regulated by FDI regulations framed by govt. FDI is allowed under two modes of approval, automatic route and Approval Route. In case of automatic approval route there is no prior approval of govt is required for brining in FDI. Various business sectors has been devided into sector for which FDI is allowed under automatic route and sector where approval is required. With gradual libarlization most of the sectors are covered under automatic route, barring few sectors like, Retail, defence, real estate etc. There are statutory filing that are required to be done with RBI on getting the FDI investments into the business entity.
Where a business entity wishes to set up a subsidiary/ joint venture outside india, investment towards the same are regulated by ODI (Outward Direct Investments) Regulations.