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Akash Janrao and Associates

"Most Start-up companies invariably face the problem of not being able to reach out to the experts for certain services required for their business."

Our Startup Services include :

  • Advisory on the various Schemes and Incentives of the Govt. of India under the “Startup India” and its benefit to any startup company.

  • Advisory on Various Income Tax advantages for a Startup Company registered under the Startup Plan of the Govt. Of India.

  • Assistance on designing the right business structure keeping in mind the future investors and venture capitalist who would want to be a part of these startup activities.

  • Incorporation of the Company.

  • Obtaining all the necessary registration for starting the operations of the company

  • Ongoing Support, which includes designing of accounting systems, payrolls, book keeping, timely filing of various statutory returns and compliances, virtual CFO services, etc.

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We at AJA, provide Start-up Services, as a single window solutions for incorporating the company and start-up advisory services.

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Our team of experts includes experienced professionals who are trained in different services like Incorporation of a company, Statutory registrations, Legal Assistance, Taxation, Accounting and Finance, Outsourced CFO services, Secretarial Compliances, Payroll, Virtual office space.

Setting up Company in India:

Also We at AJA , offer our professional expertise to domestic and foreign investors & companies for setting up their businesses in India . We not only advise you about the foreign investment policy & procedures of the Government of India but also obtain all the necessary approvals required.

The list of the different services provided in this area are:

  • Limited Liability Partnership (LLP)/ Company Incorporation

  • Assisting in reviewing all the contracts and agreements to protect the interest of the company as well as investors.

  • Helping in obtaining all the clearances and approvals from the Reserve Bank of India (RBI) and Foreign Investment Promotion Board (FIPB).

  • Helping in acquiring all the one-time registrations to start up the business activities.

  • Helping in setting up the bookkeeping/ accounting processes and systems.

We ensure providing valuable inputs to our clients that will act as the tax-friendly option while formulating the business strategy.

If there is any foreign company that is planning to set up business operations in India, they have two options –

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  • As an Indian Company

  • As a Foreign Company

As an Indian Company:

A foreign company can commence operations in India by incorporating a company under the Companies Act, 2013 through:

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Joint Venture With An Indian Partner :

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Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

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  • Established distribution/ marketing set up of the Indian partner

  • Available financial resource of the Indian partners

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations

Wholly Owned Subsidiaries :

Foreign equity in such Indian companies can extend up to 100% depending on the equity caps in respective sectors and areas of activities as per the regulations prescribed under the Foreign Direct Investment (FDI) policy in place on the date of investment. Basically Reserve Bank of India through its Foreign Direct Investment Policy has two routes. One is an Automatic Route and other is a Prior Approval of FIPB Route. AJA, can assist in understanding the details of the FDI policy, sectoral equity caps & procedures on a specific request.

AS A FOREIGN COMPANY

Foreign Companies can set up their operations in India through:

  • Liaison Office/Representative Office

  • Project Office

  • Branch Office

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Such offices can undertake any permitted activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.

Branch Office

Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes:

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  • Export/Import of goods

  • Rendering professional or consultancy services

  • Carrying out research work, in which the parent company is engaged.

  • Promoting technical or financial collaborations between Indian companies and parent or overseas group company.

  • Representing the parent company in India and acting as buying/selling agents in India .

  • Rendering services in Information Technology and development of software in India .

  • Rendering technical support to the products supplied by the parent/ group companies.

  • Foreign airline/shipping company.

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A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).

  • How can Accounting Service will help my business?
    A book keeping and accounting service can assist you to keep track of all expenses so that the tax preparer can send over the necessary paperwork. You can get a clear picture of your company's financial health if you hire an efficient accounting service.
  • Is there any option to use it for more than one CA firm?
    As a chartered accountant in practice, you are allowed to join more than one company as a partner. In contrast, a practicing chartered accountant cannot become a partner in other firms or professions other than practice.
  • Where would you find the best Chartered accountants in Pune?
    Their 50-Point Inspection encompasses customer evaluations, history, complaints, ratings, contentment, trust, pricing and overall quality. In this way, you can find the best one!
  • Which 3 accounting items are the most important for a business?
    Many experts believe the top line, or cash, is the most important component on a company's balance sheet. Other important factors to examine include accounts receivable and short-term investments. A balance sheet includes assets, liabilities, and equity.
  • How will outsourcing of Accounting and Finance benefit the business?
    Outsourcing finances and accounting reduce the time and effort required to manage and supervise your in-house accounting personnel. It will allow you to devote more time and resources to the most important aspects of your organization.
  • What is financial accounting and what are its advantages?
    A company's financial transactions are meticulously tracked in financial accounting. This year's revenue and expenditure are shown in a Financial Statement of Accounts, a technical document that records and summarizes all of the business's activities.
  • What are the advantages of accounting services?
    Accounting, when done effectively, provides abundant information on the health of your company's finances. It's easier to make smart business choices if you have a clear view of your money.
  • What is applicability of statutory audit?
    An audit is required if an LLP's yearly income exceeds Rs. 40 lakh or its capital contribution exceeds Rs. 25 lakh. In addition, a tax audit is required of proprietorships and partnerships that surpass a certain sales threshold.
  • What are the important elements to check in the statutory audit of banks?
    The following are critical items to verify during a bank's statutory audit: Procedure for Cash Verification. Tax-Related Purchases. Loan Accounts Verification. Loan Accounts Verification Preliminary Examination. Disbursement. Inspection Following Disbursement.
  • What is the applicability of Section 138 (Internal Audit)?
    Suppose the Board decides to appoint an internal auditor, in that case, it must be a chartered accountant or a cost accountant or such other professional as the Board deems appropriate to undertake an internal audit of the company's duties and operations.
  • Which is the criteria for appointment of an internal auditor?
    The Board of Directors may appoint an internal auditor who is a chartered accountant, cost accountant, or other certified professional. The internal auditor may or may not be an employee. No matter whether you're a Chartered Accountant or not.
  • What is Internal Auditing?
    What is the purpose of an internal audit? –A company's internal controls, such as its corporate governance and accounting systems, are examined during an internal audit. In addition, financial reporting and data gathering is supported by these audits, which assure compliance with applicable legislation.
  • Statutory audit of banks is mandatory?
    Banks are required to undergo a statutory audit. The Reserve Bank of India (RBI) and the Institute of Chartered Accountants of India (ICAI) jointly designate Statutory Auditors. All banks undergo a thorough audit once a year after the conclusion of the preceding fiscal year.
  • What is the Statutory audit?
    Legally mandated audits of financial accounts and records are known as "statutory audits."... Enterprises that must be audited include public companies, banks, brokerage and investment organizations, and insurance firms.
  • What do you mean by 'income earned in India'?
    In India, all wages are considered to have been earned there. Therefore, even if you charge a fee for a service delivered in India, you are still considered to have earned revenue in India.
  • Is Income tax Act applicable only to residents?
    New provision 6(1A) of the Income-tax Act, 1961. Such a person is considered an Indian resident only if his domicile, residency, or other comparable factors exempt him from taxation in any other nation or jurisdiction.
  • What is Income Tax?
    A direct tax levied by the state on its citizens' income. Income does not merely mean pay. It also covers rental income, corporate earnings, professional gains (such bonuses), capital gains, and "other kinds of income."
  • What does the Income Tax Department consider as income?
    Income tax returns must be filed by everyone who earns any money in a given year. From a wage, firm profits or rental or dividend income to capital gains or interest or any other form of income, all comes under the category person’s income.
  • Who is supposed to pay Income Tax?
    Any Indian citizen under the age of 60 who earns more than Rs 2.5 lakh gets taxed. If a person is above 60 and earns more than Rs. 3 lakhs, they must pay taxes to the Indian government.
  • What is the period for which a person's income is taken into account for purpose of Income tax ?
    A person's annual income is subject to income tax. The year begins on April 1 and ends on March 31 of the following year, which is the tax year.
  • How does the Government collect Income-tax?
    There are three primary methods in which the government collects Income Taxes: Source-Separated Taxes (TDS) Paying Taxes Only Once (TCS) Bank accounts designed for tax-payer contributions.
  • What are revenue and capital receipts?
    Non-operating capital receipts include profits from the sale of long-term assets, capital invested by the owner, and sums received as a loan or from debenture holders. Revenue receipts consist of sales, commissions, and investment interest, all contribute to the company's annual revenue.
  • How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?
    Taxes on all transactions of supply of goods and services will be imposed concurrently by the Central and State governments, save for those transactions that fall below the set threshold limitations.
  • What is GST? How does it work?
    Federal sales tax, the goods and services tax (GST), applies to the price of specified products or services. Upon purchasing a product, a buyer must pay the complete sales price, including GST, which the firm adds.
  • What are the benefits of GST?
    The GST eliminates tax escalation. Composition strategy for a small company A quick and simple internet approach. Less regulations Improvements in logistics efficiency The GST regulates the unorganized sector.
  • Will cross utilization of credits between goods and services be allowed under GST regime?
    It would be able to pay for both products and services using CGST credits if they were earned. Furthermore, in the case of SGST, the possibility of credit cross-utilization would be available.
  • What are the major chronological events that have led to the introduction of GST?
    This timeline summarizes key events in India's GST system. The L K Jha committee introduced VAT in 1974. The MVAT was introduced in 1986. (MODVAT) The Chelliah Committee advocated VAT in 1991. (GST)
  • What about the Registration Process?
    Form 32 - Details about the director, manager, and secretary. An Incorporation Certificate will be issued after the Form is completed and the Corporate Identity is created. eForm 19 requires the prospectus (Schedule II). OBTAIN A CORPORATION CERTIFICATE
  • Which taxes at the Centre and State level are being subsumed into GST?
    The following taxes have been combined at the state level: state value-added tax, sales tax, entertainment tax, central sales tax, Octroi and Entry tax, purchase tax, and excise tax are all examples of taxes
  • Who and when an entity has to register?
    Companies Act, 2013 defines 5 kinds of entities that may be registered when beginning a new business: Sole Proprietorship. LLP. One Man Band. LLLP. Private Limited. Any association or partnership with over 100 members must be registered as a corporation.
  • What are the benefits to hiring bookkeeping services?
    Mission-critical information is provided. As a result, you might save money on your taxes. You may be able to save money on accounting costs. You will save time. You may even see an increase in revenue.
  • How can having an outsourced accounting department help me manage my business?
    Outsourcing accounting is typically cheaper than hiring a full-time person. Help in key activities of the company. The finest software is used. Get accurate information Stricter controls and less fraud
  • Which are the best companies for outsourcing bookkeeping and accounting services?
    Akash Janrao & Associates is one if the best companies for outsourcing bookkeeping and accounting services.
  • What are outsourced online bookkeeping services?
    Typically, a virtual accounting firm is responsible for capturing and summarising your financial information. If your CPA has access to this data, they can help you with your taxes and financial planning going forward.
  • Why should large financial companies prefer to outsource bookkeeping or accounting services?
    Streamlines the Hiring Process and Save Money Save time and effort. Professional Bookkeepers and CPAs Intuitive Scaling of Accounting Automated systems
  • Why should outsource bookkeeping, payroll or accounting services?
    Outsourcing is helpful for budgeting. You may choose the payment plans that work best for you and your company without hiring full-time staff. This allows you to compare your alternatives and pick the best value for money.
  • Why need outsource bookkeeping services?
    Payments may be managed more efficiently and more quickly using the newest cloud-based solutions available via outsourcing. For less than the cost of your firm's outdated equipment, an experienced finance and accounting outsourcing company will be able to deliver modern technology.
  • Do Startups Have to Pay GST?
    Numerous startups are in the service business, which means they are subject to service tax. They may offset the VAT paid on purchases (say, office supplies) against the service tax on their sales under the GST scheme, something they cannot do under the existing structure. As a result, it will significantly boost the startup business, which is mainly focused on offering services. It will result in cost savings, hence improving working capital for cash-strapped firms.
  • Is There a Tax Credit for Starting Your Own Business?
    This plan was open to startups that were established between April 1, 2016, and March 31, 2021. Starting in the first year, such companies would be entitled to a tax credit of 100 percent on profits for three years in a block of seven years, provided that their annual turnover does not exceed Rs. 25 crores in any financial year.
  • Are LLC Startup Costs Tax Deductible?
    The expenditures associated with forming an LLC are tax-deductible, but you must be aware of critical limitations, exclusions, and guidelines in order to deduct these costs legitimately. The Internal Revenue Service (IRS) imposes restrictions on the number of deductions available for LLC starting fees. If your beginning expenditures are less than 50,000, you may deduct up to 5,000 for initial organizational costs.
  • Do startups pay taxes?
    The government has waived the tax that would have been paid on investments in qualifying startups that were more than their fair market value. ... Additionally, investments made by incubators in excess of fair market value are excluded from taxation. Income Tax is levied on the income as per the below-mentioned schedule of Taxes. Type of Business Entity Income and its Tax applicable Proprietorship/ Individual As per Income Tax Slab Rates Partnership/ LLP Firm - 30% of Income Indian Company - 25% of Income
  • How to Get Tax Exemption in India for Startups?
    Exemptions from SECTION – IAC- Eligible startups may claim up to 100% of profits and gains for three consecutive years during a 10-year period, provided that the company's annual revenue does not exceed 100 crores in any of the prior financial years. This tax is referred to as the Angel tax. However, the government has exempted all government-recognized companies from the Angel tax with the latest announcement. Entrepreneurs may now save money on taxes and use it for funding by using this area.
  • How do startups get tax benefits?
    The qualifying period has been extended until the end of March 2022, thanks to Budget 2021. Startups in this category would be entitled to a tax credit of 100 percent on profits for three years in a block of seven years, provided that their annual revenue does not exceed Rs. 25 crores in any one financial year during that time. Only if a startup meets the requirements of an "Eligible Startup" can it use all of the tax incentives available to it.
  • How can NRI save tax in India?
    Non-resident Indians do not have access to several key deductions that are available to residents. A PAN Card is needed to do this. Retain your non-resident Indian status. Use what you have. Interest on a Home Loan
  • Who is NRI as per Income Tax Act?
    Currently, Indian citizens who work or do business outside of India are considered non-residents under the country's tax laws. However, if an NRI spends more than 182 days in India in a financial year, he is considered a "resident" of India.
  • Do NRIs have to pay tax?
    Anyone earning more than Rs 2,50,000 per year, NRI or not, must file a tax return. NRIs are solely taxed on income earned or received in India.
  • Is NRI income taxable in India?
    If they are residents in India, all of their worldwide income is subject to taxation. In the case of NRIs, any income generated or accumulated in India is subject to Indian taxation.
  • Is Income Tax Return need to file compulsory Online for NRI for AY 2021-22?
    If your taxable income exceeds the basic exemption level, you must file an ITR (i.e. Rs 2.50 Lacs in the case of individuals). ITR filing isn't required if your total taxable income falls under the exemption level (section 139 of the Income Tax Act).
  • How much do NRI save?
    Your monthly savings of 75% (from 4.5 lakh) amount to 3.375 lakh rupees, which may be invested in one of the following ways: Equity Mutual Funds INR 1,68,750 lakh/month, or 50 percent of the entire investment.
  • How can you tell if an individual is NRI?
    A resident who spends more than 182 days outside India becomes an NRI. A "resident" is someone who has spent more than 60 days in India in the last year and 365 days in the previous four years.
  • Can NRI claim TDS refund?
    NRIs who file ITRs after the end of India's financial year are entitled to TDS refunds. To get a refund on the bank's TDS, an NRI must assess their own income and tax responsibilities.

After the entity is set-up in India:

We provide complete, online back office operations. From book-keeping to pay roll payroll processing, audit and assurance services and business enterprise services which includes all the statutory compliances required by a company in India. Opening Bank Account Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided by AJA.

Growing Successfully:

Companies in India are required by law to place on public record their statutory annual accounts, which must be audited. These must comply with a range of disclosure requirements set out in the Companies Act, 2013. AJA, ensure that all disclosure requirements are met, and are authorised to carry out independent statutory audits. Our approach to audit concentrates effort where it's most needed, keeping costs to a minimum and providing a useful management tool. Our advice isn't just an annual event but clients rely on our experience all year round. As your profits grow, we advise on corporate tax planning and compliance. Whenever cross border / intra group transactions arise, the difficult issue of transfer pricing is never far behind. We can help you to determine fair prices and ensure that the documentation required by the tax authorities is in place. Financial and tax planning for business owners and key employees is just as important to maximise your financial growth and minimise tax bills.

The Advantages

Our service list allows you to pick and choose to specifically match your needs. Our outsourcing capability allows you to achieve India fiscal compliance cost-effectively. We look after the peripheral issues leaving your company time to concentrate on what's really important: succeeding in the India.

Company Formation Process In India

Companies Act:

Companies incorporated or registered in India are governed by the Companies Act 2013.

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Shareholders and Directors:

  • One local resident director is mandatory to incorporate a company in India

  • Foreign nationals can incorporate company in India and hold foreign equity to the extent of 100% which is dependent upon sector in which company will operate and is subject to approval from either Reserve Bank of India(RBI) or Foreign Investment Promotion Board (FIPB) as may be applicable.

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Memorandum & Articles of Association:

The memorandum and articles are the primary legal document of a company. Memorandum contains the name of the company, authorized share capital, initial members and object clause. Articles are a set of internal regulations that govern the day to day operations of the company. Both memorandum and articles have to be filed with Registrar of companies at the time of incorporation or if there are any changes thereafter. At least two subscribers (shareholder) are required in the memorandum and each of the subscriber must subscribe to at least one share in the company.

Share Capital:

Shares must be expressed in a fixed amount. Shares to be subscribed must be expressed in Indian rupees.

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Annual Meetings:

An annual general meeting (AGM) must be held once in every financial year and not more than 6 months after the end of financial year. However, a company can hold its first AGM until 18 months from its incorporation.

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Public Filings

The names and personal particulars of the directors and secretary, register of charges, share capital, registered office address etc. must be filed with the Companies Registry.

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Accounts & Auditors:

Every company is required to appoint an auditor each year at its AGM. An auditor must be qualified by virtue of the Institute of Chartered Accountants of India Act 1949 and completely independent of the company. Audited accounts of the company serve as tool for various stakeholders like creditors, bankers, investors and revenue authorities.

How to Form a Company In India

Broad Steps to be taken for incorporating a private limited company:

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  • Identify the Local and Foreign Directors

  • Obtain Digital Signature Certificates of all the Directors

  • Obtain DIN (Director's Identification Number) for all the Directors

  • Identify & Reserve the Name for the Company

  • Ensure that the name does not resemble the name of any other company already registered.

  • Apply to the concerned ROC to ascertain the availability of name. along with the necessary filing fees.

  • Drafting of the Memorandum and Articles of Association.

  • Get the Memorandum and Articles signed by the subscribers (at least two subscribers) in their own hand.

  • Obtain the Final Certificate of Incorporation from ROC.

LLP : Limited Liability Partnership under the LLP Act 2008 :

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  • LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.

  • The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

  • The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.

  • Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

  • Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Difference between a LLP and a Company :

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  • A basic difference between an LLP and a company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 2013) whereas for an LLP it would be by a contractual agreement between partners.

  • The management-ownership divide inherent in a company is not there in a limited liability partnership.

  • LLP will have more flexibility as compared to a company.

  • LLP will have lesser compliance requirements as compared to a company

Liaison Office/ Representative Office

Liaison office acts as a channel of communication between the principal place of business or head office and entities in India . Liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India . Its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. It can promote export/import from/to India and also facilitate technical/financial collaboration between parent company and companies in India . Approval for establishing a liaison office in India is granted by Reserve Bank of India (RBI).

Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India . RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

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