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FAQ Category: FAQ Page
FAQ Category: FAQ Page
What is foreign entity & how it is regulated?
Any company, firm, LLP, branch, business formed or registered outside India by the Indian promoter or Indian entity in common parlance is known as foreign entity. India’s foreign trade policy & FEMA regulations allows Indian promoter & entities to setup foreign entity or business almost in all countries. They can also purchase shares, buy properties,Details
What is DEMAT shareholding in unlisted companies?
Shareholding in the listed company is to be held in demat form. Few years back MCA has issued a notification for all unlisted public companies to transfer their physical shareholding into dematerialized form. For this, company is required to approach to RTA for taking demat connectivity with depositories (NSDL/ CDSL). Once company’s securities are dematerialisedDetails
What is beneficial ownership in a company & what compliances are required?
In corporate group structuring to achieve certain tax benefits, ownership is controlled indirectly through investment entities, trusts, special purpose vehicles (SPV). Many a times the location of said investment entities are in different countries. With the objective to reach to a last point of ownership beneficiaries, declaration of Beneficial Ownership (BO) in companies is introducedDetails
What is common group entities & what are their legal standing?
Any company, llp, firm or any other entity if owned and managed by same group of people, then it is usually a common group entities. Commercially such common group entities enjoys the benefits of pulling of resources, economy of scale, sharing of knowledge, technology & resources & flexi inter entity fund management. Reputation & BrandingDetails
What is Joint venture & how to structure it?
Joint venture is a process of coming together of two or more entities for common cause or goal. It is designed usually around technology, market, finance, resources, manpower etc. Joint venture partners usually share the capital & management in the JV entity as per mutual understanding. Pre requisite of good joint venture are existence ofDetails
Whether MSME registration is mandatory & what are the Government schemes & benefits available for MSME?
MSMED Act regulating MSME/ SME in India has undergone a change with effect from 1.7.2020. New criterias for classification of Micro, Small & Medium Enterprise are based on combined criteria of turnover & investment in plant & machinery has been introduced. Every type of business entity (proprietary, partnership firm, company, LLP) is eligible to registerDetails
Do LLP needs to appoint Statutory Auditors & get the audit done every year?
LLP is a special vehicle introduced for SME size of activities. LLP compliances are less complicated and less burdensome. LLP is a great combination of corporate benefits, limited liability and ease of compliances. For income tax purpose LLP is treated at par with partnership firm. LLP act provides for turnover threshold for mandatory applicability ofDetails
How to appoint/ change Statutory Auditors of the Company?
Every company (including OPC) needs to appoint a Chartered Accountant or Firm of Chartered Accountant as its Statutory Auditors & get the books of the Company Audited every year. On formation of the Company, auditor needs to be appointed within 1 month by the Board. Every company is required to prepare the Financial Statements (FS)Details
What is DIN & how to get it?
DIN is a unique director identification number issued to each individual who wishes to become a director in the Company or Designated Partner in LLP. After introduction of MCA system for Company & LLP registry, all exiting directors and Designated partners were provided DIN on application. Currently facility of direct application for getting the DINDetails
Which company needs to appoint Independent Director & How?
Independent director (ID) is a symbol of best corporate governance practices in the Company. Certain Listed & other specified Companies are required to appoint number of ID’s corresponding to their board’s strength. ID is a person carrying good standing & reputation, having specified qualification, eligibility and experience. ID needs to be a non- related independentDetails