FCRA AMENDMENT IN DEFINITION OF FOREIGN SOURCE
The Finance Bill 2016 proposed radical changes to the Foreign Contribution (Regulation) Act, 2010. Finance Act, 2016 passed on 14th May 2016.
It has amended section 2(1)(j)(vi) to exclude Indian Companies with foreign shareholding in excess of 50%.
What is Director’s Identification Number (DIN)?
It is an unique Identification Number allotted to an individual who is an existing director of a company or intends to be appointed as director of a company pursuant to section 153 & 154 of the Companies Act, 2013
Authority who allot DIN in India
Central Government (Office of Regional Director (Northern Region), Ministry of Corporate Affairs)
Capital or Share Capital of the Company denotes the amount of money raised by the issue of shares by a company and remains with the company till its liquidation i.e. closure. Share capital is owned capital of the company, since it is the money of the shareholder and the shareholder are the owners of the company through subscription of the share that were issued to them. Investment in the shares of any company is a basis of ownership in the company.
As per section 2(84) of the Companies Act, 2013: “share” means a share in the share capital of a company and includes stock;
The opening up of branch offices is one of the options by which a foreign company can set up its business operations in India. It needs to obtain a prior permission from Reserve Bank of India (RBI) for setting up such offices in India. As per the guidelines issued by RBI. A branch office refers to an establishment which carries on substantially the same business and activity as is carried out by its Head Office
Permitted activities for a Branch Office in India would be as under:
Income tax slab rates for the Assessment Year 2016-17 (Financial Year 2015-16)
Financial Year starts from 1st April and ends on 31st March. (These rates are applicable on Income earned during the period from 1.4.2015 to 31.3.2016)
Assessment year is the year immediately following the financial year wherein the income of the F.Y. is assessed.
Applicability of Taxation in India is based on the residential status of the individual in a tax year.
Residential status of the Individual can be classified as resident, not ordinary resident or non- resident.
To form an Organisation meant not for profit in India, below are the options available:
- Section-8 Company
Comparison among Trust, Society and Non Profit Company
The following procedure is usually followed for getting the mark registered in India:
1. To Conduct search, if required
To conduct search at the Trade Marks Registry` for the availability of the mark through preparing and filing an application with the Trade Mark Registry.
2. Filing of Trademark Application
The LLP shall be a body corporate and a legal entity separate from its partners. Any two or more persons, associated for carrying on a lawful business with a view to profit may by subscribing their names to an incorporation document and filing the same with the Registrar, form a Limited Liability Partnership.
The concept of One Person Company is a new vehicle/form of business, introduced by The Companies Act, 2013 [No.18 of 2013], thereby enabling Entrepreneur(s) carrying on the business in the Sole-Proprietor form of business to enter into a Corporate Framework.
The concept opens up new vistas of business opportunities and particularly spectacular possibilities for sole proprietorships and entrepreneurs who can enjoy the advantages of limited liability and the benefit of separate legal entity as well.
Digital Signatures Certificates (DSC)
By incorporating a company under the Companies Act 2013:
A. Joint Venture;
B. Wholly Owned Subsidiary in India (Basically a Private Limited Company having a foreign parent holding company outside India).
A liaison office means a place of business to act as a channel of communication between the principal place of business or head office and the entity in India but which does not undertake any commercial/trading/industrial activity and maintains itself out of inward remittances received from abroad. A liaison office may be permitted to carry on the following activities:
This is new buzzword these days among youngster or otherwise who want to create something. And believe me if you are thinking to setup a startup, nobody has time in this world to read lengthy articles. But at some point of time the business requires to take a form of legal business entity and its very important to consider the legal aspects of the business entity.