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A  private limited company  is best suited for small businesses. The liability of the members is limited to the number of shares that are held by them and these shares cannot be publicly traded.  HERE ARE A FEW POINTS THAT WILL HELP YOU SAVE TAXES IF YOU OWN A PRIVATE LIMITED COMPANY   One of the easiest ways to  save tax  is by paying salary to the   directors   Profits can be shared as salary instead of sharing as dividends   Sitting fee can be paid to the directors for attending board of committee meetings Assets can be categorized as capital assets in the balance sheet of the company when they are purchased.      Here’s how bookkeeping your company’s records will help you save taxes .   Bookkeeping refers to the organizing, storing and accessing the financial information of a company. Keeping a record of the company’s rent expenses and preliminary expenses like drafting of  MOA  and  AOA , cost of d...

What is a foreign company? Foreign company – A  foreign company  is any company that is incorporated outside of India and has a place of business that is operating in India, whether by itself or through agents, physically or through an electronic mode. What is a foreign subsidiary company? A  foreign subsidiary company  is a partially or wholly-owned company which is a part of a larger corporation. The larger corporation must be headquartered in another country. The foreign subsidiary company works according to the laws of the country in which they are located. Documents required for the company registration process in India (H2) The following documents need to be provided as per rules and regulations of companies Act, 2013/MCA (MINISTRY OF CORPORATE AFFAIRS, INDIA) DOCUMENTS NEED TO BE ARRANGED FROM FOREIGN COMPANY Board Resolution for Name Approval in India and Authorized person to subscribe shares (Apostiled and Notarized in the Resident Country of Holding company...

  Bookkeeping  refers to the organizing, storing and accessing the financial information of a company that helps in making the day to day operations of the business much easier. It also helps to prepare tax returns and other reports to the manager. Accounting  – An accountant’s job is to minimize errors caused while recording a large number of activities that the business engages in a particular period. An accountant prepares reports based on the bookkeeping records. An accountant has to measure profit, which is a difficult task to do. This report used to measure profit can be obtained from the bookkeeper’s records. Benefits of bookkeeping & accounting Helps you to maintain a budget It is a major issue of every business as it is easy to plan and very difficult to control and maintain. It plays a very vital role as it helps you to budget and maintains the income and expenses in an organized way, also it creates a financial roadmap to your business where it is easier to...

  We all must have come across the term  ‘Professional tax registration’  somewhere or the other. But did you ever try to find out what exactly is this  PT registration  is all about? The next time when you get your payslip, take a couple of minutes off to study the break-up of the deductions. You may come across the term ‘Professional Tax’. Do not panic or get confused with this term with Income tax. Both are altogether different terminologies like how a north pole and a south pole differ from one another. However, your salary slip may not mention professional tax because not all Indian states impose it. The states that impose the professional tax are Andhra Pradesh, Assam, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Orissa, Sikkim, Tamil Nadu, Telengana, Tripura and West Bengal. Now in this blog let us know what is a ‘Professional Tax is all about? Professional tax is a tax imposed by the state government. Professional tax is levied under Art...

  Limited Liability Partnership Registration  has emerged as one of the most chosen forms of business entity. It is due to the simplicity in the formation and easy maintenance. One of the biggest merits of LLP registration is that it helps the owners to limit their liabilities to a great extent. This blog on  LLP registration  will give you a fair idea about the concept and the procedures. LLP registration is called a hybrid between a company and a partnership firm. It has the benefits of a private limited company and the flexibility of a partnership firm. In this form of a business, no partner is held liable on account of the unauthorized actions of other partners. Hence individual partners are shielded from joint liability due to the misconduct created by other partners. LLP form of organization is generally preferred by professionals, micro, and small entrepreneurs. For LLP to get registered there have to be at least two designated partners of which one of them ha...