FAQ's: Frequently Asked Question
Have questions about accounting, taxation, GST, or company registration? Our FAQ section provides quick and clear answers to help you navigate financial and compliance matters. Whether you're a startup, an established business, or an individual, find solutions to common queries and expert guidance from Deo & Associates.
Types of Companies in India
India offers various types of companies to suit different business needs, governed primarily by the Companies Act, 2013. Here’s an overview:
1. Private Limited Company (Pvt. Ltd.)
Owned by private individuals with a limit of 200 shareholders.
Shares are not publicly traded.
Suitable for startups and small businesses due to limited liability protection and easy fundraising.
2. Public Limited Company
Shares can be publicly traded on stock exchanges.
Requires at least 7 shareholders and 3 directors.
Ideal for large-scale businesses looking to raise capital from the public.
3. One Person Company (OPC)
Owned and operated by a single individual.
Combines the benefits of sole proprietorship and limited liability.
Best for small entrepreneurs or sole owners.
4. Limited Liability Partnership (LLP)
A hybrid structure combining features of a partnership and a company.
Partners have limited liability.
Suitable for professional firms or service-oriented businesses.
5. Section 8 Company
Non-profit organization established for charitable, educational, or cultural purposes.
Cannot distribute profits among its members.
Often used by NGOs and trusts.
6. Partnership Firm
Owned and managed by two or more individuals under a partnership agreement.
Partners have unlimited liability unless registered as an LLP.
Ideal for small businesses or family-run enterprises.
7. Sole Proprietorship
Owned and managed by a single individual.
No separate legal entity, and the owner bears unlimited liability.
Best suited for small-scale businesses or startups with minimal risk.
8. Joint Venture Company
Formed by two or more entities (domestic or foreign) to undertake a specific project.
Combines resources and expertise of partners.
9. Foreign Company
A company incorporated outside India but conducting business in India through a branch office, liaison office, or wholly-owned subsidiary.
Must comply with RBI and FDI regulations.
10. Producer Company
Formed by farmers, producers, or agriculturalists to improve their incomes and operations.
Focuses on agricultural production, harvesting, or processing.
Each type of company serves a specific purpose and caters to different business models and goals. Deo & Associates can guide you in selecting and registering the right company structure for your business needs!
Registering a Private Limited Company in India is a straightforward process when done correctly. Here’s a step-by-step guide:
Step 1: Obtain Digital Signature Certificate (DSC)
A Digital Signature Certificate is mandatory for all directors for e-filing.
Apply for DSC from a certifying authority.
Step 2: Apply for Director Identification Number (DIN)
Obtain a DIN for all proposed directors by filing Form DIR-3 on the MCA portal.
Provide identity proof (PAN for Indian nationals, passport for foreigners) and address proof.
Step 3: Reserve a Unique Name
Use the MCA’s SPICe+ form or RUN (Reserve Unique Name) service to propose a unique company name.
Ensure the name complies with the Companies Act, 2013 naming guidelines.
Step 4: Prepare Incorporation Documents
Draft the Memorandum of Association (MoA) and Articles of Association (AoA).
Gather other required documents such as:
Identity and address proof of directors and shareholders.
Registered office address proof (utility bill and NOC).
Step 5: File the SPICe+ Form
The SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form is submitted online to the Ministry of Corporate Affairs (MCA).
Attach DSCs, MoA, AoA, and other supporting documents.
Step 6: PAN and TAN Application
Apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) through the SPICe+ form.
Step 7: Certificate of Incorporation (COI)
Once approved, the MCA issues the Certificate of Incorporation, which includes the Company Identification Number (CIN).
The company is now legally registered.
Step 8: Post-Incorporation Compliance
Open a corporate bank account.
Register for GST, if applicable.
Maintain statutory books and file annual returns with the MCA.
Need Assistance?
Registering a Private Limited Company involves legal and procedural requirements that can be complex. Deo & Associates offers end-to-end support for a hassle-free registration process. Contact us today to get started!
The process of registering a company in India involves several legal steps to ensure compliance with the Companies Act, 2013. Here’s a step-by-step guide to help you understand the procedure:
Step 1: Obtain Digital Signature Certificates (DSC)
Directors and subscribers need a Digital Signature Certificate (DSC) for filing electronic forms with the Ministry of Corporate Affairs (MCA).
Apply for DSC from a government-approved certifying authority.
Step 2: Apply for Director Identification Number (DIN)
Directors must obtain a unique Director Identification Number (DIN).
DIN can be applied for through the SPICe+ form during the registration process.
Step 3: Name Approval
Choose a unique name for your company.
Use the SPICe+ Part A form on the MCA portal to reserve the name. Ensure the name complies with naming guidelines under the Companies Act.
Step 4: Prepare Incorporation Documents
Draft the following essential documents:
Memorandum of Association (MoA): Defines the company’s objectives.
Articles of Association (AoA): Outlines the rules and regulations for the company’s operations.
Gather other documents, including:
Identity and address proof of directors and shareholders.
Proof of registered office address (utility bill and NOC from the owner).
Step 5: File SPICe+ Form for Incorporation
Complete the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, which includes:
Name reservation.
Incorporation application.
PAN and TAN application.
Upload the required documents along with the form on the MCA portal.
Step 6: Payment of Fees
Pay the statutory fees and stamp duty online as prescribed by the government based on the authorized capital of the company and the state of incorporation.
Step 7: Issuance of Certificate of Incorporation (COI)
Once the application is verified and approved by the Registrar of Companies (ROC), you will receive a Certificate of Incorporation.
The COI includes the Company Identification Number (CIN), marking the official registration of your company.
Step 8: Post-Incorporation Compliance
Open a corporate bank account.
Register for Goods and Services Tax (GST), if applicable.
Comply with mandatory filings, such as maintaining statutory books and filing annual returns.
Need Professional Help? The registration process involves multiple legal and procedural steps. Deo & Associates offers expert guidance and hassle-free assistance for company registration. Contact us today to ensure a smooth and compliant registration process!
Starting a company in India involves several legal, financial, and strategic steps. Here's a comprehensive guide to help you get started:
1. Choose the Right Business Structure
Select a business structure that suits your goals and needs:
Private Limited Company: Suitable for startups and growing businesses.
One Person Company (OPC): Ideal for solo entrepreneurs.
Limited Liability Partnership (LLP): Best for professional service firms.
Sole Proprietorship: Simple and easy for small-scale businesses.
Partnership Firm: For businesses with two or more partners.
Section 8 Company: For non-profit organizations.
2. Register Your Business
Follow these steps to legally register your company:
Digital Signature Certificate (DSC):
Obtain DSC for directors to file documents online.
Director Identification Number (DIN):
Apply for DIN for all directors through the MCA portal.
Name Approval:
Reserve a unique name for your company using the SPICe+ Part A form.
File Incorporation Documents:
Prepare and submit the Memorandum of Association (MoA), Articles of Association (AoA), and other required documents.
Certificate of Incorporation (COI):
Once approved, receive the COI, marking your company's legal existence.
3. Register for Tax and Compliance
PAN and TAN:
Apply for your company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
GST Registration:
Mandatory for businesses exceeding the turnover threshold or involved in interstate trade.
ESI & EPF Registration:
Required if you plan to hire employees.
4. Open a Business Bank Account
Open a corporate bank account in the company’s name for transactions.
Submit the COI, PAN, and other required documents to the bank.
5. Set Up Your Operations
Choose a location for your business operations and obtain the necessary NOCs or licenses, if applicable.
Hire employees, if needed, and create contracts and agreements.
6. Comply with Legal Requirements
Maintain statutory registers, books of accounts, and minutes of board meetings.
File annual returns with the Ministry of Corporate Affairs (MCA).
Ensure compliance with other applicable laws and regulations.
7. Market and Grow Your Business
Build a strong online and offline presence.
Develop marketing strategies to reach your target audience.
Monitor financial performance and plan for scalability.
Need Expert Help?
Starting a company can be overwhelming, but professional guidance can make the process smooth and hassle-free. Deo & Associates offers end-to-end support for company registration, compliance, and financial management. Contact us today to turn your business idea into reality!
Establishing an international company in India involves following specific legal procedures and compliance requirements. Here’s a step-by-step guide to help you navigate the process:
Step 1: Choose the Type of Entity
Foreign companies can establish their presence in India through:
Wholly Owned Subsidiary (WOS):
A private limited company where a foreign company owns 100% of shares.
Branch Office (BO):
For activities like export/import, consultancy, or research.
Liaison Office (LO):
For market research and acting as a communication channel.
Joint Venture (JV):
A partnership with an Indian company.
Step 2: Obtain Required Approvals
Depending on the chosen structure, approvals may be required from:
Reserve Bank of India (RBI):
For setting up branch or liaison offices.
Ministry of Corporate Affairs (MCA):
For registering a private limited company or WOS.
Step 3: Name Approval
Use the RUN (Reserve Unique Name) service or SPICe+ Form on the MCA portal to get the proposed company name approved.
Step 4: Prepare Incorporation Documents
Collect and prepare the following documents:
For the Parent Company:
Certificate of Incorporation (notarized and apostilled).
Charter documents such as Memorandum of Association (MoA) and Articles of Association (AoA).
For Directors and Shareholders:
Passport (notarized and apostilled for foreign nationals).
Proof of address (utility bill or bank statement).
Digital Signature Certificate (DSC) for directors.
For the Registered Office in India:
Proof of address (utility bill or lease agreement).
No Objection Certificate (NOC) from the property owner.
Step 5: File for Incorporation
File the SPICe+ Form with the MCA, attaching all required documents.
Apply for:
Permanent Account Number (PAN).
Tax Deduction and Collection Account Number (TAN).
Step 6: Register for Additional Compliance
GST Registration: Mandatory if applicable based on turnover or business activities.
Foreign Direct Investment (FDI) Compliance: Adhere to the sector-specific FDI regulations.
Import Export Code (IEC): Required for import/export businesses.
Step 7: Open a Bank Account
Open a current account in the name of the company.
Submit the Certificate of Incorporation, PAN, and other documents to the bank.
Post-Incorporation Compliance
File annual returns with the MCA.
Maintain statutory books and records.
Ensure compliance with FEMA (Foreign Exchange Management Act) regulations.
Why Work with Deo & Associates?
Setting up an international company in India can be complex. Deo & Associates offers expert guidance and end-to-end assistance to ensure a smooth and compliant registration process.
Contact us today to establish your business in India!
GST (Goods and Services Tax) registration is mandatory for certain individuals and entities involved in the supply of goods and services in India. Below is a detailed guide on eligibility:
1. Mandatory Registration
The following categories of businesses or individuals must register for GST:
Turnover-Based Registration
Businesses with annual turnover exceeding the threshold limits:
₹20 lakh for services (₹10 lakh in special category states).
₹40 lakh for goods (₹20 lakh in special category states).
Interstate Supply
Any business supplying goods or services across state borders must register for GST, regardless of turnover.
E-Commerce Operators
Platforms that facilitate online sales, such as Amazon, Flipkart, or Swiggy.
Casual Taxable Person
Individuals or businesses that occasionally supply goods/services in areas where they do not have a fixed place of business.
Non-Resident Taxable Person
Foreign entities or individuals supplying goods/services in India without a permanent establishment.
Input Service Distributors (ISD)
Entities distributing input tax credit to their branches.
Reverse Charge Mechanism (RCM)
Businesses liable to pay tax under RCM.
Specialized Sectors
Suppliers of specific notified goods such as tobacco, ice cream, and pan masala.
2. Voluntary Registration
Even if not mandatory, businesses may opt for GST registration voluntarily to:
Claim input tax credit.
Improve business credibility.
Expand operations with ease, especially for B2B transactions.
Documents Required for GST Registration
PAN card of the business or applicant.
Proof of business registration or incorporation certificate.
Identity and address proof of promoters/directors.
Address proof of the business location.
Bank account statement or canceled cheque.
Digital Signature Certificate (DSC) for online filing.
Need Help with GST Registration?
Navigating GST laws and filing can be complex. Deo & Associates provides end-to-end GST registration and consultancy services to ensure compliance and peace of mind.
Contact us today!