Services
REGISTRATION OF BUSINESS ENTITY TO START A BUSINESS
Kalpavat is instrumental in establishment of over 100 foreign business entities and 500 Indian entities in India. We aim to provide one roof solution to the Investors to start their business in India with respect to Legal, Taxation and logistics requirements. Investors may opt for incorporation of any of the following form of entities:-
Indian Subsidiary by Foreign Entities
A Complete solution for foreign enterprises starting their Indian operations through incorporation of a Indian private limited company. The foreign companies / individuals to start their operations in India and tap into one of the largest and fast-growing market, to access to some of the best human resources in the world.
A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can invest and own a Company in India by acquiring equity shares of the company, subject to the Foreign Direct Investment Policy under Foreign Exchange Management Laws of India. In addition, a minimum of one Indian Director who is a Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India.
Liaison office by Foreign Company
A liaison or a representative office can be opened in India subject to approval by Reserve Bank of India. Such an office can undertake liaison activities on its company’s behalf. A liaison office can also undertake:
- Representing parent/group companies in India
- Promoting import/export in India
- Promoting technical/financial collaborations on parent company/group’s behalf
- Coordinating communications between parent/group companies and Indian companies
Branch Office by Foreign Company
Foreign companies can conduct their business in India through its branch office which can be opened after obtaining a specific approval from Reserve Bank of India. A branch office can undertake following activities:
- Import & export of goods
- Rendering professional or consultancy services
- Carrying out research work in area which its parent company is engaged
- Promoting technical/financial collaborations on behalf of parent company/ overseas group company
- Representing parent/group companies in India and acting as buying/selling agent in India
- Providing IT services and developing software in India
- Providing technical support for products supplied by parent company/group
Project office by Foreign Company
If a foreign company is engaged by an Indian company to execute a project in India, it may set up a project office without obtaining approval from Reserve Bank of India subject to prescribed reporting compliances. As applicable in case of a branch office, a project office is treated as an extension of foreign company and is taxed at the rate applicable to foreign companies.
Proprietorship Business
There is no mechanism provided by the Government of India for the registration of a Proprietorship. Therefore, the existence of a proprietorship must be established through tax registrations and other business registrations that a business is required to have as per the rules and regulations. For instance, Goods & Service Tax (GST) Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship. Thus, all the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.
Partnership Business
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership. There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm with the Registrar of Firms; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners.
Limited Liability Partnership (LLP)
Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. LLP is one of the easiest form of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family owned or closely-held.
Private Limited Company
Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.
Public Limited Company
A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital. A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company. Public Limited Companies are those types of companies where minimum number of members is seven and there is no cap on the maximum number of members. A public limited company has most of the characteristics of a private limited company.
REGISTRATION WITH TAX AND COMPLIANCE AUTHORITIES
Goods and Services Tax (GST) Registration
GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.
PAN /TAN Registration
Permanent Account Number (PAN) and Tax Deduction and Collection Number (TAN) is mandatory 10-digit alphanumerical number required to be obtained by all taxable entities. TAN is allotted who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government - quoting the TAN number.
PF Registration
Provident Fund is a mandatory post-retirement benefit in India (Social Security scheme) provided under the Employees Provident Fund and Miscellaneous Provision Act 1952. The employee and employer each contribute 12% of the employee's basic salary and dearness allowance towards EPF. The current rate of interest on EPF deposits is 8.10% p.a.
ESI Registration
Employee's State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. For all employees earning INR 15000 or less per month as wages, the employer contributes 4.75 percentage and employee contributes 1.75 percentage, total share 6.5 percentage. This fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. But most of the dispensaries and hospitals are run by concerned state governments.
MSME Registration
Micro, Small and Medium Enterprises (MSME) is any entity that falls under any of these three categories. MSME are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.
Import Export Code
Import Export Code (IEC) is a registration required for persons importing or exporting goods and services from India. IEC is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India.
FSSAI Registration
The Food Safety & Standards Act, 2006 introduced to improve the hygiene and quality of food has brought about tremendous changes in the food industry. As per the Act, no person shall commence or carry on any food business except under a FSSAI license or FSSAI registration. Therefore, any food manufacturing or processing or packaging or distributing entity is now required to obtain a FSSAI License or Registration.
Digital Signature
A Digital Signature is the equivalent of a physical signature in electronic format, as it establishes the identity of the sender of an electronic document in the Internet. Digital Signatures are used in India for online compliances such as Income Tax E-Filing, Company or LLP Incorporation, Filing Annual Return, E-Tenders, etc
INVESTMENTS IN INDIA
Our team of domain and functional experts provide sector-and state-specific inputs, and hand-holding support to investors through the entire investment cycle, from pre-investment decision-making to after-care. We assist with location identification; expediting regulatory approvals; facilitating meetings with relevant government and corporate officials; and also provide aftercare services that include initiating remedial action on problems faced by investors. The Make in India initiative was launched by Prime Minister in September 2014 as part of a wider set of nation-building initiatives. The Initiative was devised to transform India into a global design and manufacturing hub. Under this initiative Foreign Direct Investment policies were reformed and liberalized. The foreign investment in India can be summarized in following pointers:
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- Foreigners can directly invest in India either on their own or as a joint venture, with a few exceptions with regard to investment limits and sectors.
- No government approval is required for FDI in virtually all sectors except a small negative list formulated by government.
- Sector specific guidelines are formulated by government giving sectoral investment caps if any. If an investment does not qualify for automatic approval, FIPB considers the proposal.
- Use of single foreign brands names/trademarks is permitted for wholesale trade in India however the retail and e-commerce is restricted with sectoral caps and minimum investment criteria.
- Indian capital markets are open to FII’s and Indian companies are allowed to raise funds from international capital markets
- Foreign technology collaborations are allowed with agreements on
- Technical knowhow fees
- Payment for designs and drawings
- Payment for engineering services
- Other royalty payments
- Non-Resident Indians can invest in shares and or convertible debentures of Indian companies on a non-repatriable basis and these investments are not considered as FDI
- The repatriation of investment capital and profits earned: There are three basic points to note with respect to repatriation:
- All foreign investments are freely repatriable, subject to sectoral policies. Dividends declared on foreign investments can be remitted freely through an authorized dealer.
- Non-residents can sell shares on the stock exchange without prior approval of the Reserve Bank of India (RBI) and repatriate the sale proceeds through a bank, if they hold the shares on repatriation basis and if they have necessary NOC/tax clearance certificate issued by the Income Tax authorities.
- For sale of shares through private arrangements, regional offices of the RBI grant permission for recognized units of foreign equity in Indian company in terms of guidelines indicated in Regulation 10.B of Notification No. FEMA.20/2000 RB dated May 2000. The sale price of shares on recognized units is to be determined in accordance with the guidelines prescribed under Regulation 10.B (2) of the above Notification.
- Locational Restrictions: Industrial undertakings are free to select the location of their projects. Industrial License is required if the proposed location is within 25 km of the Standard Urban Area limits of 23 cities having population of 1 million as per 1991 census.
- Environmental Clearances: Entrepreneurs are required to obtain statutory clearances relating to pollution control and environment as necessary for setting up an industrial project for 31 categories of industries in terms of Notification S.O. 60 (E) dated 27.1.94 as amended from time to time, issued by the Ministry of Environment & Forests under The Environment (Protection) Act, 1986.
JOINT VENTURES
Foreign companies can also set up joint venture with Indian or foreign companies in India. There are no separate laws for joint ventures in India and laws governing domestics companies apply equally to joint ventures. Key elements of a joint venture's design include:
1) the number of parties;
2) the geographic, product, technology and value-chain scope within which the JV will operate; 3) the contributions of the parties;
4) the structural form (each country has specific options,
5) the valuation of initial contributions and ownership split among the parties;
6) the profit and cost sharing arrangements, post-deal
7) governance and control;
8) Talent/HR model
9) contractual arrangements with the parent companies for inputs, outputs or services;
10) exit and evolution provisions.
We at Kalpavat through our professional associates assist the business entities to draft and execute and implement the Joint Venture Agreements.
CFO Services
Quality and Cost effective assistance to small and big companies in various routine tasks.
CFO Services
- Accounting & Data Entry.
- Compliance Services.
- Accounting Services.
- Payroll Process.
- Report & Analysis
How is Outsourcing Different with us?
- Work is performed by experienced professionals.
- Cost is known and fixed.
- Expectations and Deadlines are mutually agreed and consistently met.
- Experts are always available for special projects.
- A policy and procedure manual is prepared and kept up to date.
- A logical, orderly, and neat filing system is established and maintained.
- If full-time staff is eventually required, we can help with Recruiting and Training.
- After our assignment is completed, we are always available for special projects.
Statuory Compliance Services
Due to the increasing number of regulations and need for operational transparency, organizations are increasingly adopting the use of consolidated and harmonized sets of compliance controls. This approach is used to ensure that all necessary compliance requirements can be met without the unnecessary fines and penalties.We helps the business entities to comply with various tax and other laws of India.
Income Tax
- Obtaining PAN & TAN for the organization
- TDS payment and quarterly return
- Annual Income Tax return Filling
- Tax Audit under Income tax
- Transfer Pricing working under income tax
- Issue of form 15CA & CB
- SFT filling
- Carrying out GST assessment & Appeals
GST
- GST Registration as per requirements
- Filling of monthly GST returns -GSTR-1 & 3B
- Annual GST returns -9 & 9C
- GST assessment and Appeals
Corporate Laws
We through our associates provide complete hassle free Corporate Law compliance solutions and aim for zero penalties compliances.
- Companies Act : Entities such as public /private/LLPs incorporated in India through the web portal provided by the Ministry of Corporate Affairs mandatorily are required to file certain documents with the Registrar of Companies annually. Failure or delays to comply with such compliances could result in severe penalties , fines and litigations under the Companies Act for the Officers or the Company and Directors. Any changes in the charter or management of the Company must be reported to the Registrar of Companies within the time stipulated under the Act. Hence, it is important for Management personnel of a company to be aware of all the necessary compliances for the company and comply on time.
- FEMA : All the foreign entities investing in India through Companies (public / private) or LLPs, are required to report the Foreign Direct Investments (Shares / External Commercial Borrowings), Cross-border transactions in India through the FIRMS / FLAIR / FIFP(Foreign Investment Facilitation for special approvals) web portals provided by the Reserve Bank Of India under Foreign Exchange Management Act, 1999 (FEMA).
- SEBI : Securities Exchange Board of India (SEBI) under SEBI Regulation Act, 1992 has been entrusted with a responsibility to protect the interests of the investors and to keep the market transparent . Any public Company or Private Company listed on any of the Stock Exchange in India (listed entity) under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 mandatorily needs to periodically disclose material information to SEBI through Compliance web portals provided by the concerned stock exchanges.
- Independent Director Services : Our associate professionals are registered with Independent Director's Databank of Ministry of Corporate Affairs and are eligible to be appointed as Independent Directors of any of following companies :
- Every Listed Public company should have at least 1/3 of the total number of directors as independent and
- Every public company except joint venture or Wholly Owned Subsidiary or Dormant company shall have at least 2 directors as independent directors:
- The unlisted Public Companies having: Paid up share capital-> Rs.10 crore rupees or more; or
- Turnover Rs.100 crore rupees or more; or
- Aggregate, Outstanding loans, Debentures and Deposits, Exceeding Rs.50 crore.
Labour Law
Labour laws are a set of compliances that set the tone for the treatment of the labour force in the workplace. It regulates the companies, workers, and trade unions. Non-compliance with the laws can lead to punitive action towards the organization.
Labour Laws are imposed by the State as well as the Central Government. The labour law compliances are not just restricted to filing returns, but these records serve as evidence for the compliance of the laws and must be produced to the authorities in case of any discrepancies. There are laws that are enforceable only for certain work environments. And there are some laws that are enforceable to all organisations.
We at Kalpavat provide compliance and advisory services related to the labour laws such as ESI (Employees State Insurance) Act and Employees Provident Fund and Miscellaneous Provision Act, 1952, Payment of Gratuity Act, 1972, Factories Act, 1948
Audit & Assurance
Entities operating in India has to undergo various audits as applicable under various laws : To list a few:
- Statutory Audit under Companies Act: As per Companies Act, 2013, every company, irrespective of its sales turnover or nature of business or capital must have its book of accounts audited each financial year. Thus, the Board of Directors of a Company are required by law to appoint an Auditor within 30 days of incorporation and thereafter conduct an audit of its financial statements each financial year. The accounts of a Limited Liability Partnership (LLP) must be audited if it has an annual turnover of Rs.40 lakhs or more or Rs.25 lakhs or more capital contribution.
- Internal Audit under Companies Act : Internal audits evaluate a company’s internal controls, including its corporate governance and accounting processes. These types of audits ensure compliance with laws and regulations and help to maintain accurate and timely financial reporting and data collection. Internal auditors are hired by companies who work on behalf of their management teams. As per section 138 of Indian Companies Act 2013 read with Rule 13 Of Companies (Accounts) Rules, 2014, certain class of companies are mandatorily required to appoint Internal Auditors. However, most companies conducts Internal Audit voluntarily for ensure that the internal controls are in place.
- Tax Audit under Income Tax : Section 44AB of Income Tax act gives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfillment of other requirements of the Income-tax Law. The audit conducted by the chartered accountant of the accounts of the taxpayer in pursuance of the requirement of section 44AB is called tax audit. The chartered accountant conducting the tax audit is required to give his findings, observation, etc., in the form of audit report. The report of tax audit is to be given by the chartered accountant in Form Nos. 3CA/3CB and 3CD.
- Transfer Pricing Audit under Income Tax: Transfer pricing law in India applies to both domestic and international transactions which fall above a threshold in terms of deal value. Transfer Pricing was introduced through inserting Section(s) 92A-F and relevant Rule(s) 10A-E of the Income Tax Rules 1962. It ensures that the transaction between ‘related’ parties is at a price that would be comparable if the transaction was occurring between unrelated parties.
A report from an accountant has to be furnished by persons who are entering into an international transaction or a specified domestic transaction. A report from an accountant in a prescribed form, duly signed and verified by the accountant must be obtained before the specified date by any person entering into an international transaction or specified domestic transaction in the previous year. The audit is applicable to both international and specified domestic transactions. Form 3CEB must be filed.
- GST audit under GST: Any registered taxable person whose annual aggregate turnover exceeds 5 crore INR during a financial year needs to get their accounts audited. Audit under GST is the process of examination of records, returns and other documents maintained by a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess the compliance with the provisions of GST.
RECRUITMENT SERVICES
Every Company needs employees to run its Business. Finding the Right candidate for any position in a organization can be a very Stressful process. We at KALPAVAT understand this reality and focus on professional searches for Identifying the Best candidates required by our Clients.
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- We meet & interact our Clients on regular basis to understand their Staff requirements in detail. In the process, we also offer our advice to the client in shaping their requirement.
- We have created access to millions of Resume Database covering various geographical locations. Sophisticated Computerized techniques are used for speedy and accurate search of CVs of Right candidates for the client’s requirement.
- We also do Web posting or News paper advertisements on behalf of clients to approach appropriate candidates.
- We refer candidates to client for interview after screening and preliminary interview.
- We can also negotiate with the Shortlisted Candidate to design the Pay pack as per the client’s terms.
- We can also Draft Contracts with the candidate, if required
SURVEYS / DATA COLLECTION / PROJECT MANAGEMENT SERVICES
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Handled about 20 projects Some survey & data collection projects are log term projects spanning over 1-2 years.
- Assisting in Market Research & Data Collection in various Cities of India.
- Collection of pricing data through mobile application.
- Field test of mobile application.
- Working as observer for foreign clients for various events.
- Good Network of Free Lancers & Technical Persons.
- Arranging the Infrastructural requirements of clients in various cities of India.
PROJECT FINANCE SERVICES
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- Assessing the Financial requirements of the Company and guiding the Company for best source of financing.
- Project reports preparation.
- Liaison with Banks and Financial Institutions for approval of projects.
- Arrange Private Equity, Venture Capital etc.
- Arrange Mortgage loans, unsecured loans etc.