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      Archives: FAQs

      Archives: FAQs

      What is ECB & how to get it?
      August 17, 2020 Admin

      ECB is external commercial borrowing. ECB is the cheapest form of Loan made available by foreign collaborator or foreign bank or foreign entity to Indian business. ECB is governed by RBI/ FEMA regulations. Currently majority of ECB options are under automatic route & required lesser & post transaction compliances. ECB is flexible form of foreign

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      What is foreign entity & how it is regulated?
      August 17, 2020 Admin

      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,

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      What is DEMAT shareholding in unlisted companies?
      August 17, 2020 Admin

      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 dematerialised

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      What is beneficial ownership in a company & what compliances are required?
      August 17, 2020 Admin

      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 introduced

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      What is common group entities & what are their legal standing?
      August 17, 2020 Admin

      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 & Branding

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      What is Joint venture & how to structure it?
      August 17, 2020 Admin

      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 of

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      Whether MSME registration is mandatory & what are the Government schemes & benefits available for MSME?
      August 17, 2020 Admin

      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 register

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      Do LLP needs to appoint Statutory Auditors & get the audit done every year?
      August 17, 2020 Admin

      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 of

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      How to appoint/ change Statutory Auditors of the Company?
      August 17, 2020 Admin

      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)

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      What is DIN & how to get it?
      August 17, 2020 Admin

      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 DIN

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