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What is a Subsidiary? A subsidiary company is a company owned and controlled by another company. The owning company is called a  parent company   or sometimes a holding company. A foreign subsidiary company  is a partially or wholly-owned company that 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. The Parent company may be the majority shareholder of the subsidiary company or have a greater representation on its board of directors. Bookkeeping of all the financial records of the foreign subsidiary company will be tracked by the parent company. It is mandatory for these foreign subsidiary companies to obey the laws of the country they are operating in. Minimum Requirements : Directors  – A min imum of two directors are required to incorporate a private limited company in India. Both directors need to be individuals a...

  We all must have come across the phrase that says ‘Honesty is the Best Policy”. Aren’t’ we! In one way or the other the terms ‘honesty’ and ‘trust’ are interlinked with one another. Both these terms play a very crucial role in  accounting and bookkeeping services . For any business to succeed be it accounting and bookkeeping services, or any other form of business trust is an essential factor. Trust is nothing but a belief that an individual or an organization has on somebody. It is a relationship in which the trustor gives the trustee the right to hold title to property or assets for the beneficiary. To run a business can be quite challenging. However, it’s nearly impossible for a business to build trust if honesty is not a guiding force in the way the company handles every aspect of its work process. Moreover, ‘trust’ isn’t only about undertaking things the right way, but it also speaks about expressing values. You might ask why ‘trust’ is very important in accounting serv...

  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...

  It is a separate legal entity and the partners are liable for their respective contributions. It has flexible management roles It is easier to form an LLP. The formation of an LLP only require the partners to fill out a registration form and file it with the local secretary of the state LLP does not have to pay tax as a separate business entity; however, partners have to pay only their individual taxes. The cost involved in registering an LLP is comparatively lesser than that of a  Private Limited Company Transfer of ownership is easy. The ownership can be changed but changing the managing directors as LLP is a separate legal entity. There is no maximum limit of partners when it comes to incorporating your business as an LLP A minimum capital requirement is not needed to  register your firm as an LLP  The liability of members in respect in respect to the LLPs debt is limited. The personal assets remain of the members remain safe even if the company goes bankrupt. L...

  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...

  A  foreign subsidiary company  is a partially or wholly-owned company that 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. We have listed 9 important advantages if your registering a foreign company . Control Establishing a subsidiary company in India gives the  parent  company   operational and strategic control over the company. This becomes a very vital benefit for the parent company. Synergies  Synergies are combining two services together to get a combined or greater effect. Establishing subsidiary companies provide the benefit of synergies where a common financial system is used, sharing the cost incurred between the parent company and subsidiary. Brand name The brand name is retained as both the parent company and the subsidiary bear the same name. This leads to better growth opportunities for...