ONE PERSON COMPANY SETUP IN INDIA

INTRODUCTION

With the new Companies Act 2013, the government has introduced the Concept of One Person Company i.e Knows as OPC Company in India. The Individual entrepreneurs Carrying on business as proprietorship firm will now be able to avail the benefits of limited liability without a second person to form a company as the Companies Act, 2013 (hereinafter "2013 Act") proposes the concept of "One Person Company" (hereinafter "OPC").

INCORPORATION

In terms of section 3(1)(c) of the 2013 Act, an OPC may be formed for any lawful purpose by one person.

Salient features in relation to incorporation include

• The memorandum of an OPC shall indicate the name of another person, with his prior written consent, who shall, in the event of the subscriber's death or his incapacity to contract become the member of the company.
• The written consent of such person shall also be filed with the registrar of companies at the time of incorporation of the OPC along with its memorandum and articles.
• The words "One Person Company" must be mentioned in brackets below the name of such company, wherever its name is printed, affixed or engraved. [Second provison to Section 12(3)]
• A person can incorporate a maximum of 5 OPCs. [Rule 2.1(2)]
• Only natural persons can incorporate an OPC. Also, the person incorporating an OPC must be an Indian citizen who has stayed in India for at least 182 days during the immediately preceding one financial year. [Rule 2.1(1)]

Nomination by the subscriber or member of OPC

In terms of section 4(1)(f), the memorandum of an OPC should state the name of the person who shall become the member of the company in the event of death of the subscriber. Such nominee may withdraw his consent subsequently. [Section 3(1)]

• The subscriber to the memorandum of an OPC shall nominate a person, after obtaining his/her prior written consent, who shall, in the event of the subscriber's death or his incapacity to contract, become the member of that OPC. [Rule 2.2(1)]
• The member of OPC may at any time change the name of such nominee by giving notice as prescribed. [Section 3(1)]
• The notice by the member of OPC as stated above must be provided by the OPC to the registrar of companies once the same is intimated by the member to the OPC. Any change in the name of nominee shall not be deemed to be an alteration of the memorandum. [Section 3(1)]
• Only a natural person who has stayed in India for a period of not less than 182 days during the immediately preceding one financial year is entitled to be a nominee for the sole member of an OPC. [Rule 2.1(1)]
• Ambient Air Quality Report (if available)

Documents Required-

• Application for reservation of name in INC-1
• Proof of Identity of Member & Nominee
• Proof of Address of Member & Nominee
• Copy of PAN Card of Member & Nominee
• Consent of Nominee in form INC-3
• Affidavit in form INC 9 for subscriber for shares and Memorandum
• Application for Incorporation of Company in form INC-7
• Filling of Registered office address in form INC-22
• Proof of address for the registered office of Company.

Note: - The incorporation of OPC-One Person Company would commence from 28th April 2014, many practical aspects would clear after MCA rolls out forms. Know more about information: New company registration India and Service tax registration

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CASE STUDY ON REIMBURSEMENT OF EXPENSES MADE TO C&F AGENTS

Assessee engaged in the business of imports and/or exports, engages services of Clearing & Forwarding agents.

Payments to such C&F agents comprise of the following:

·         Reimbursement of freight paid to shipping companies or airlines.

·         Reimbursement of freight on local transportation

·       Reimbursement of import or export clearing expenses like payments to Port Trust, Airport Authorities of India, miscellaneous charges, etc.

·         Reimbursement of bonded warehousing charges.

·         Reimbursement of Customs duties and Octroi.

·         Reimbursement for Crane and Machinery charges to Port Trust etc.

·         Agency service charges

Whether any tax is liable to be deducted on any of the above payments to C&F agents?

Query

If the agent has already deducted TDS on freight payments to the Indian Shipping Co., then whether the importer/exporter also needs to deduct tax on the payments made to the agents and if so then on what amount?

When C&F agent deduct tax and pays it to the ex-chequer, the payments would be on his own TDS account or his clients’ account number?

Held

 If the assessee reimbursed expenses towards freight incurred on its behalf under an agreement for which separate bills is raised, the provisions of section 194C are not attracted

• Section 194C is applicable where payments is made to a contractor / sub- contractor where the contract is either a work contract or a contract for supply of labour for works contract

• In the present case, the assessee has reimbursed the expenses to its consignment agent and it was not a direct payment of freight by the assessee to the transporter Surendra Commercial & Exim. Know More about information: TDS Consultants and International transfer pricing

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LLP Registration India

Limited Liability Partnership

LLP - limited liability partnership is one of the highly recommended forms of corporate in which every partner enters the company with limited liability where the profit and loss and other liabilities have been shared as per the ratio of amount that they have invested while joining the LLP. It is one of the most successful corporate forms that have showed a huge success in short span of time.

LLP registration in India has taken place under LLP act 2008. It is quite distinct from those of limited partnership firms as under LLP one partner is not held responsible for another partner's negligence whereas under the Partnership Act 1890 there is joint liability.

Limited Liability Partnership Registration Process and Services

LLP rules and guidelines usually vary as you proceed from one country to another. Every country has separate criteria in respect of limited liability partnership registration process and services.

Here; in India: The Limited Liability Partnership Act 2008 had got listed in the official Gazette of India on January 9, 2009 whereas effected from 31 March 2009. Thus, it is necessary to review and understand the exhaustive list of rules and regulations of LLP incorporation or formation in the respective countries where you are required to form your limited liability partnership firm.

There are few perquisites while forming a limited liability partnership such as:

·         There should be not less than 2 partners to form LLP as per LLP act 2008 India.

·         There should at least 2 designated partners where these partners should be individuals and one of them must be resident of India and have Designated Partner Identification Number assigned by the Ministry of Corporate Affairs.

·         Designated partners required to obtain digital signature certificate number that is DPIN on filing an application under e-Form 7 before applying for LLP registration in India.

·         Before filing an application; a LLP name should be decided and approved from the desired associated authority. Be sure name must be in compliance with guidelines of LLP and Ministry of Corporate Affairs. An application for approval shall be filed in E-Form 1 to the registrar of company.

·         An agreement should be formed and duly signed by all the partners before filing an application in India.

·         Finally, an application for LLP registration in India should be made in E-Form 2 to the registrar office of LLP. Where all information about LLP require to mention in respect of ID Proof of partners, full name and addresses, about agreement and lots more as per specified guidelines. Know more about: international transfer pricing

Here, we are glad to introduce you with best legal firm in India where you can call at 011-43520194 or mail at info@carajput.com  to obtain registration or incorporation of LLP.

ACCOUNTING OUTSOURCING SERVICE INDIA

Service Tax

In the present times of intense competition and highly performance – oriented business world, it makes perfect sense to outsource certain activities of the company in favor of better management and optimal cost efficiency. Outsourcing is, in fact, a singular answer to the multifarious challenges that any company confronts in the face of peaking standards of performance and profitability. It avails the company the specialized services of professional accounting firms, thereby saving significant time and manpower and allocation of the saved resources in propagating business further.

There is a plethora of professional accounting firms that undertake outsourced accounting jobs in a comprehensive manner. Services from these firms are very accurate and timely, as they are highly fine tuned to suit the client’s subjective demands and needs. The services target to optimize business resources and processes for their clients and analyze potential risks much in advance. The efficient and reliable services of these firms al low informed and better management decision making. 

Among the most common services that are outsourced, it is common for companies to leave preparation and maintenance of day-to-day bookkeeping and management of accounts, as per US GAAP accounting standards, to professional firms. Other services generally outsourced include,

• Preparation of annual accounts and schedules for statutory annual audit; 

• Preparation of monthly salaries of employees and other inclusive pay roll services; 

• Helping clients make periodic income tax, sales tax and other returns and make sound investment decisions; 

• Assisting clients with recovery of debts; 

• Handling cash and bank operations for the current accounts and 

• Analyzing cash requirements for future use.

Know more about information: Business tax consultants

Further, If you are looking professional assistance on Corporate Law, Direct, Indirect tax law, Accounts Outsourcing or any other related matter, mail us at: -info@carajput.com or call at 011-43520194, We will try to get it resolved as early as possible. Please mention your mobile no. & address so as to serve you better.