Our Services
Company Incorporation in India
In India, creating a company entity is not the easy cake. However a professional consulting is always advised for a seamless setup and operation. We are a reputable organization that supports business incorporation services. Our complete business start-up in India consists of services spanning from advice to choosing the kind of corporation.
The process of forming a business start up in India differs for partnership firms, companies, HUF, and proprietorship. Our services of incorporation, registration, and tax related formalities are all complemented with experts guidance. Our team of Company Secretaries and Chartered Accountants provides honest and practical assistance for establishing a business in and other allows for multiple cities. Services related to Business incorporation includes:
1. Registration of PRIVATE LIMITED COMPANY in India.
2. Registration of LLP (Limited Liability Partnership Firm) in India.
3. Registration of One Person Company (OPC)
4. Registration of Public Limited Company in India.
5. Registration of Section 8 Company in India.
6. Registration of any other type of Company in India
1. Private Limited Company (Pvt Ltd) :
Step-by-Step Process to Register a Private Limited Company
1. Obtain Digital Signature Certificates (DSC)
Why: Required for signing online forms (mandatory for all proposed directors & shareholders).
For whom: All proposed directors and subscribers to MOA.
Documents needed:
PAN Card (mandatory for Indian citizens)
Aadhaar Card or Passport/Voter ID
Passport-size Photo
Email ID & Mobile Number
2. Apply for Director Identification Number (DIN)
How: File SPICe+ Part A & Part B (DIN gets allotted to new directors through this form).
DIN is required for: Any individual to become a company director.
Note: Existing DIN holders need not apply again.
3. Name Approval (SPICe+ Part A)
How: File SPICe+ Part A on the MCA portal.
Choose: 1 preferred name + 1 optional name.
Name rules:
Must be unique.
Must include suffix “Private Limited.”
Avoid similarity with existing company/trademark names.
MCA checks name availability & issues approval (valid for 20 days).
4. Drafting MOA & AOA
MOA: Memorandum of Association (defines the company’s objectives).
AOA: Articles of Association (rules of internal management).
These documents are e-filed along with the SPICe+ form.
5. File SPICe+ Part B and Linked Forms
Includes:
SPICe+ Part B: Incorporation form.
AGILE-PRO-S: For GST, EPFO, ESIC, Professional Tax (mandatory).
INC-9: Declaration by first directors & subscribers.
e-MOA (INC-33) & e-AOA (INC-34)
6. PAN and TAN Application (Auto-generated)
PAN & TAN are auto-generated along with incorporation.
Issued by NSDL (included in the SPICe+ form).
You will receive:
Certificate of Incorporation (COI)
PAN and TAN
DIN for new directors
7. Company Incorporation Certificate
Issued by Registrar of Companies (ROC) after successful verification.
Includes:
Company CIN (Corporate Identification Number)
Date of incorporation
PAN, TAN, and GST (if applied)
8. Open a Bank Account
Required documents:
COI
PAN
MOA & AOA
Board resolution for opening account
Open a current account in the company’s name.
9. Commencement of Business (Form INC-20A)
Timeline: Within 180 days of incorporation.
Required: Proof of capital subscription by shareholders (bank statement).
Failure: May lead to penalties or company strike-off.
List of Documents Required from Directors/Shareholders
| Document | Indian Citizens | Foreign Citizens |
|---|---|---|
| PAN Card | Mandatory | Not applicable |
| Passport | Not required | Mandatory |
| Address Proof (Utility bill/Bank statement) | Mandatory | Mandatory |
| Photo | Mandatory | Mandatory |
| Email ID | Mandatory | Mandatory |
| Mobile No | Mandatory | Mandatory |
Registration Cost
| Component | As per your need |
|---|---|
| DSC (per person) | As per your Need |
| Govt Fees (depending on capital) | As per your Need |
| Professional Fees (CA/CS) | Please Call Us |
| Stamp Duty | Varies by state |
Key Points to Remember
Minimum 2 Directors & 2 Shareholders (can be same people).
At least one director must be Indian resident.
Registered office address in India is mandatory.
Share capital: No minimum limit (but ₹1 lakh is commonly declared).
2.Limited Liability Partnership (LLP):
Step-by-Step LLP Registration Process in India:
Step 1: Obtain Digital Signature Certificate (DSC)
All designated partners must have a DSC to file online forms.
Documents required:
PAN card
Aadhaar card
Email ID and Mobile number
Passport size photo
Step 2: Apply for Director Identification Number (DIN)
Apply for DIN through the Form FiLLiP (integrated with DIN allotment) if not already allotted.
DIN is mandatory for all designated partners.
Step 3: Reserve LLP Name (Optional Step)
File Form RUN-LLP (Reserve Unique Name) on MCA portal.
You can directly apply for name in the FiLLiP form as well.
Step 4: File LLP Incorporation – Form FiLLiP
File Form FiLLiP (Form for Incorporation of LLP) online.
Attach necessary documents:
Consent of partners
Proof of address of registered office
Identity & address proofs of partners
Subscriber sheet
Pay applicable government fees based on capital contribution.
Step 5: Certificate of Incorporation
Once approved, Registrar of Companies (RoC) issues LLP Incorporation Certificate with LLPIN (LLP Identification Number).
Step 6: LLP Agreement Filing – Form 3
Draft and file LLP Agreement within 30 days of incorporation.
File through Form 3 with notarized agreement on stamp paper.
Stamp paper value depends on state and capital contribution.
Key Documents Required:
For Partners For LLP PAN & Aadhaar Proof of registered office (electricity bill, rent agreement etc.) Passport (for foreign nationals) LLP Agreement Address proof (bank statement, driving license) Consent letter from partners Passport size photo Digital Signatures (DSC) Govt. Registration Fees :
Stamp Duty on LLP Agreement: depending on states in india
Form Filing Fees: based on capital
Important Notes:
Minimum 2 designated partners (at least one must be Indian resident)
No minimum capital requirement
PAN, TAN, and GST registration can be applied after incorporation
LLP is a separate legal entity with limited liability
3.One Person Company (OPC):
Step-by-Step Process to Register an OPC in India (MCA)
Step 1: Obtain Digital Signature Certificate (DSC)
Required for the proposed Director to sign e-forms online.
Documents required:
PAN card
Aadhaar card
Passport-size photo
Email ID and mobile number
Step 2: Apply for Director Identification Number (DIN)
DIN is required for the sole director of the OPC.
If not already allotted, it can be applied during SPICe+ filing (no separate application needed).
Step 3: Name Approval using Part A of SPICe+ Form
File Part A of SPICe+ form for name reservation.
Name format: “ABC (OPC) Private Limited”
Ensure name is unique and complies with MCA naming guidelines.
Check availability with our team
Step 4: Fill SPICe+ Part B (Incorporation Form)
This is a web-based integrated form for:
Company incorporation
PAN, TAN
GST (optional)
EPFO, ESIC
Professional Tax (in Maharashtra)
Documents to upload:
MoA – Memorandum of Association
AoA – Articles of Association
Declaration and Consent of the sole member and nominee in Form INC-3
Proof of registered office – rent agreement/ownership proof + utility bill
ID and address proof of member/director and nominee
Passport-size photo of director
Step 5: Filing of AGILE-PRO-S
Linked to SPICe+ Part B
Used to apply for:
GSTIN
ESIC
EPFO
Profession Tax (if applicable)
Step 6: Pay MCA Fees and Stamp Duty
Fees vary depending on the authorized capital and state.
Pay online while submitting SPICe+ forms.
Step 7: Certificate of Incorporation (COI)
Once approved by the ROC (Registrar of Companies), you’ll receive:
Certificate of Incorporation (COI)
PAN and TAN of the company (issued automatically)
Required Details & Documents:
Details/ID Needed For PAN Card & Aadhaar Director & Nominee Mobile number & Email ID Director Passport (if NRI) Director or Nominee Address proof (bank stmt, DL, etc.) Director & Nominee Photograph (JPEG) Director & Nominee Proof of office address (rent agreement, EB) Company’s Registered Office Additional Notes:
Only one director and one nominee allowed in OPC.
Nominee must give consent using Form INC-3.
OPC must convert into a private limited company once turnover exceeds ₹2 crore or paid-up capital exceeds ₹50 lakh.
Let us know if you need help with draft formats for documents like MoA, AoA, or nominee consent for
4.Public Limited Company (PLC) :
Pre-Requisites:
Before registration, ensure:
Minimum 3 Directors
Minimum 7 Shareholders
No minimum paid-up capital requirement (post amendment)
At least one director must be Indian resident
A registered office address in India
Step-by-Step Process to Register a Public Limited Company
Step 1: Obtain Digital Signature Certificate (DSC)
Required for all proposed directors and subscribers
Issued by government-recognized certifying authorities (e.g., eMudhra, Sify)
Documents needed: PAN, Aadhaar, Photo, Email ID, Mobile No.
Step 2: Apply for Director Identification Number (DIN)
DIN is mandatory for all directors.
Can be applied through SPICe+ form (Part B) if the person is not holding an existing DIN.
Step 3: Name Reservation via SPICe+ Part A
File SPICe+ Part A on MCA portal to reserve the company name.
Format: ABC LIMITED
You can propose 2 names and mention business activity
Check name availability with us
Step 4: Draft MOA & AOA
Prepare Memorandum of Association (MOA) and Articles of Association (AOA):
MOA: Defines the company’s objectives
AOA: Governs internal management
Step 5: File SPICe+ Part B
Submit the following forms online:
SPICe+ Part B (Incorporation application)
AGILE-PRO-S (for GST, ESIC, EPFO, bank account & Profession Tax)
e-MOA (INC-33) and e-AOA (INC-34)
INC-9 (Declaration by subscribers and directors)
Upload these documents:
PAN/Aadhaar/ID proof of directors & subscribers
Address proof of directors
Passport-size photographs
Utility bill for registered office
NOC from property owner (if rented)
Board resolution for corporate subscribers (if any)
Step 6: Pay MCA Fee and Stamp Duty
Fee depends on authorized capital and state of registration
Pay online through MCA portal
Step 7: Certificate of Incorporation (COI)
Upon verification, MCA issues:
Certificate of Incorporation
Company Identification Number (CIN)
PAN & TAN (auto-generated)
Post-Incorporation Compliance
After incorporation:
Open bank account in company’s name
Deposit subscription capital by each shareholder
Issue share certificates within 2 months
Appoint statutory auditor within 30 days
File INC-20A (Declaration of commencement of business) within 180 days
Register for GST, ESI, EPFO (if applicable)
Timeline:
Usually takes 10–15 working days, subject to document accuracy and MCA processing.
5.Section 8 Company (Non-Profit Organization):
Step-by-Step Registration Process of Section 8 Company
Step 1: Obtain Digital Signature Certificate (DSC)
Required for proposed Directors and Subscribers.
Apply through Certifying Authorities (e.g., eMudhra, Sify).
Documents needed:
PAN Card
Aadhaar Card
Passport-size photo
Email ID & Mobile Number
Step 2: Apply for Director Identification Number (DIN)
Apply through SPICe+ Form (Part B) if not already having DIN.
Maximum of 3 DINs can be allotted in SPICe+.
Step 3: Name Approval via SPICe+ (Part A)
Apply for name reservation using SPICe+ Part A on MCA portal.
Format: XYZ Foundation / Association / Society / Council / Institute / Organisation, etc.
Add “Section 8” in the name clause of MOA.
You can apply for 2 names with 1 re-submission option.
Names should not violate Emblems and Names (Prevention of Improper Use) Act, 1950.
Step 4: Drafting of MOA & AOA
Use e-MOA (INC-13) and e-AOA (INC-31) formats.
Objects must clearly specify the charitable purpose:
Promotion of arts, science, education, social welfare, sports, etc.
Step 5: File SPICe+ Form (Part B) with INC-9 & AGILE-PRO-S
Submit the complete incorporation package:
SPICe+ Part B
INC-9 (Declaration by subscribers and directors)
AGILE-PRO-S (Apply for PAN, TAN, GST, EPFO, ESIC, Bank Account)
Step 6: File INC-12 for License under Section 8
Attachments required:
MOA (INC-13)
AOA
Declaration in Form INC-14 by practicing CA/CS/CWA
Declaration by all directors and subscribers in INC-15
Estimated Income & Expenditure for 3 years
Detail of proposed activities
Step 7: Verification & Issuance of License
MCA will verify all documents.
If satisfied, will issue License in Form INC-16 (previously INC-12).
Step 8: Certificate of Incorporation (COI)
If everything is correct, MCA will issue:
Certificate of Incorporation
CIN (Company Identification Number)
PAN & TAN (auto-generated)
List of Documents Required
PAN Card of Directors/Subscribers
Aadhaar Card / Address Proof (Utility bill, Passport, etc.)
Passport-size Photos
Email ID and Mobile No.
Registered Office Proof:
Rent Agreement / Lease Deed / Ownership Proof
NOC from Owner
Utility bill (Electricity/Gas/Water)
Projected Income & Expenditure for 3 years
Draft MOA & AOA
Declaration (INC-14, INC-15)
Timeline: 15–25 working days (approx.)
Government Fees:
No stamp duty for MOA & AOA in most states.
PAN, TAN, and INC-12 license fee applicable.
Professional fees (for CA/CS) additional.
Great! Below is a detailed checklist and sample drafts of MOA and AOA for a Section 8 Company in India.
Checklist for Section 8 Company Registration
Basic Requirements
Requirement Details Minimum Directors 2 (for Private), 3 (for Public) Minimum Members (Subscribers) 2 (for Private), 7 (for Public) Resident Director At least 1 Indian resident Capital Requirement No minimum capital prescribed Company Name Suffix No “Ltd” or “Pvt Ltd”; only with “Foundation”, “Association”, “Institute”, etc. Documents Required
From Directors and Subscribers
PAN Card
Aadhaar Card
Passport (for foreign nationals)
Latest Utility Bill/Bank Statement (for address proof)
Passport-size Photograph
Email ID and Mobile Number
For Registered Office
Utility Bill (Electricity/Water/Gas) – not older than 2 months
Rent Agreement/Ownership Proof
NOC from owner (if rented)
Additional Attachments
Projected Income & Expenditure (3 Years)
Declaration by Professionals (INC-14)
Declaration by Subscribers & Directors (INC-15)
Digital Signatures (DSC) for all subscribers & directors
Sample MOA for Section 8 Company
1. Interpretation Clause
Defines terms like the Act, Board, Company, etc.
2. Membership
Rules for admission, resignation, and expulsion of members.
3. Board of Directors
Powers and duties of the Board
Frequency and quorum of board meetings
Roles of Chairman, Managing Director
4. General Meetings
Notice, quorum, and voting procedure
Minutes of meetings
5. Audit and Accounts
Appointment of auditors
Maintenance of books of account
Annual returns and financial statements
6. Amendment to AOA
Conditions under which AOA can be amended.
7. Dissolution Clause
On winding up, assets shall be transferred to another Section 8 Company with similar objects, not to members.
6.Partnership Firm Partnership Act, 1932:
Step-by-Step Process to Register a Partnership Firm in Mumbai
Step 1: Choose a Name for the Firm
Must be unique and not too similar to existing firms.
Should not contain prohibited words (like “Crown”, “Emperor”, “Corporation”, etc.).
Step 2: Draft the Partnership Deed
A Partnership Deed is the most important document. It should contain:
Name and address of firm and partners
Nature of business
Capital contribution by each partner
Profit-sharing ratio
Rights and duties of partners
Duration of partnership (optional)
Other mutual terms & conditions
The deed must be printed on non-judicial stamp paper (value depends on partner contributions) and notarized.
Step 3: Apply for PAN Card of the Firm
A firm must have its own PAN.
Apply online through us
Step 4: Register with Registrar of Firms (ROF), Maharashtra
Though optional, registration gives legal benefits.
Documents Required:
Application in Form 1 (in prescribed format)
Partnership Deed (Notarized & stamped)
Affidavit declaring intention to become partners
PAN card of the firm
Address proof of firm (rent agreement/property papers + utility bill)
ID and Address proof of partners (Aadhaar, PAN, etc.)
Passport-size photos of partners
Submission:
Submit all documents physically or online to Registrar of Firms, Mumbai.
Pay prescribed government fees (usually ₹100 for registration + ₹1,000 for certified copy).
Step 5: Obtain Certificate of Registration
If documents are valid, ROF will issue Certificate of Registration.
Entry will be made in the Register of Firms.
Additional Registrations (Post Registration)
GST Registration – if turnover exceeds ₹20/40 lakh or required by nature of business.
Professional Tax – mandatory in Maharashtra.
Shop and Establishment License – from BMC.
Bank Account – open current account in the firm’s name using PAN & registration documents.
Timeline
Partnership Deed & PAN: 3–5 days
Firm Registration: 10–15 working days (if all documents are proper)
Advantages of Registering the Partnership
Legal proof of existence
Right to file suit in court
Enforceable rights between partners
Easy to obtain loans, licenses, and open bank accounts
Key points to remember when starting a startup:
1. Clear Business Idea & Plan
Define your problem and solution.
Identify your target market and unique value proposition.
Create a business plan with goals, budget, marketing, and scaling strategy.
2. Choose Right Business Structure
Select an appropriate legal structure:
Sole Proprietorship – Easy setup, individual ownership.
Partnership Firm – Shared ownership, limited compliance.
LLP (Limited Liability Partnership) – Hybrid of partnership and company.
Private Limited Company – Best for startups seeking funding and growth.
OPC (One Person Company) – Suitable for solo founders.
3. Register Your Business
Apply for Business Name Approval through MCA (for company).
Get CIN (Company Identification Number) or LLPIN.
Register for GST, PAN, TAN, and other applicable licenses.
Open a business bank account.
4. Taxation & Compliance
Understand your tax obligations (Income Tax, GST, TDS, etc.).
Maintain proper books of accounts.
File timely IT returns, ROC filings, and GST returns.
Know audit requirements based on turnover.
5. Intellectual Property Protection
Register trademarks for your brand name/logo.
Consider patents for inventions or unique products.
Protect copyrights for original content/software.
6. Funding & Financial Planning
Bootstrapping / Angel Investors / Venture Capital / Bank Loans / Government Grants.
Prepare a pitch deck for investors.
Track cash flow, burn rate, and runway.
7. Government Schemes & Benefits
Register with Startup India to get DPIIT recognition.
Tax exemptions for 3 years
Easy compliance
Funding support
IPR benefits
8. Build a Founding Team & Hire Wisely
Choose co-founders/team with complementary skills.
Draft founders’ agreement clearly stating roles, equity, etc.
Comply with labour laws, offer letters, PF/ESI registration if applicable.
9. Market & Launch Strategy
Leverage digital marketing, SEO, and social media.
Focus on customer acquisition and retention.
Gather early feedback and iterate the product.
10. Legal & Risk Management
Draft solid contracts, NDAs, Terms & Conditions, and Privacy Policies.
Take appropriate insurance (e.g., liability, office, etc.).
Stay compliant with industry-specific regulations.
Audit of Companies
The firm has vast & varied experience in conducting all types of Audits for large & medium sized business entities including Audit of Public Sector Undertakings. We are Auditors of a cross – section of traders and industrialist of all size and nature. We execute audit work of our clients strictly in accordance with audit norms and extend our full co-operation while auditing the accounts of an organization. We study clients working systems, nature and volume of business and make valuable suggestions to promote efficiency and to achieve better results. For taxes, we simplify the task with our experience & expertise. We make it a point to complete the audit work in the least possible time with the least botheration to our patrons. It is our endeavor to see that our client is benefited from our services in the true sense.
The various types of audits conducted by the firm are :
- Statutory Corporate Audit prescribe under various law
- Internal Audit & Management Audit
- Concurrent Audit
- System Audit
- Tax Audit under Income Tax law
- Regular Audit
- Special Investigation Audit
- Bank Audit
In addition to these we conduct Audits for corporate, firms, trusts, banks, public sector organizations and other entities. Further other services which include statutory audits under the Income Tax Act, 1961 (Tax Audits) etc. and Statutory/non-statutory certification, attestations, investigation attestations, investigation services under various laws, etc.
Here are the step-by-step procedures to audit a company in India, as per the Companies Act, 2013 and applicable auditing standards issued by the Institute of Chartered Accountants of India (ICAI):
Our Audit Procedure for a Company
1. Appointment of Auditor
Section 139 of Companies Act, 2013 governs auditor appointment.
Appointed in the AGM for 5 years (with ratification no longer required).
Only a Chartered Accountant (CA) or a firm of CAs can be appointed.
File Form ADT-1 with the Registrar of Companies (ROC) within 15 days of appointment.
2. Understanding the Client
Study the company’s:
Business model
Internal control systems
Legal structure and compliance requirements
Perform a risk assessment to identify potential areas of material misstatement.
3. Planning the Audit
Prepare an audit plan and audit program.
Determine the scope, timeline, team, and materiality thresholds.
Evaluate internal controls and design audit procedures accordingly.
4. Gathering Audit Evidence
Perform substantive procedures and test of controls on:
Purchases and expenses
Sales and receivables
Inventory and stock
Fixed assets and depreciation
Loans, borrowings, and investments
Provisions and contingent liabilities
Related party transactions
Use techniques like:
Inspection
Observation
External confirmation
Recalculation & Re-performance
Analytical procedures
5. Verification of Statutory Compliance
Verify compliance with:
Companies Act (Board meetings, AGM, filings)
Income Tax Act
GST Act
Labour laws (EPF, ESI)
Other industry-specific laws
6. Review of Financial Statements
Check that the Balance Sheet, Profit & Loss Account, Cash Flow Statement, and Notes to Accounts:
Are prepared as per Schedule III of Companies Act, 2013
Comply with applicable Accounting Standards (AS/Ind AS)
Ensure disclosures are complete and appropriate.
7. Drafting the Audit Report
Prepare the audit report in prescribed format:
Unqualified opinion (clean)
Qualified opinion
Adverse opinion
Disclaimer of opinion
Include CARO Report if applicable (for certain classes of companies).
Include Annexures like internal control commentaries or management letters.
8. Signing & Submission
Auditor signs the audit report, balance sheet, and profit & loss account.
Submit the audited financials to the Board.
Company files:
Form AOC-4 (financials)
Form MGT-7 (annual return) with ROC.
Important Notes:
Audit is mandatory for all companies (Pvt Ltd, Public Ltd, OPC, etc.)
Statutory audit differs from internal or tax audit.
Audit must comply with Standards on Auditing (SA) issued by ICAI.
Auditors must maintain audit documentation for at least 7 years.
Our Approaches to Internal Audit :
1. Define Audit Objectives
Ensure compliance with laws, policies, and internal procedures
Identify operational inefficiencies
Evaluate risk management and internal controls
Detect fraud or mismanagement
2. Prepare an Internal Audit Plan
Develop an audit calendar (quarterly/yearly)
Prioritize departments/processes based on risk assessment
Allocate resources and assign audit team
3. Understand the Business and Internal Controls
Study company policies, SOPs, financial statements, previous audit reports
Interview key personnel
Evaluate internal control systems
4. Conduct Risk Assessment
Identify and rank risks in various departments (e.g., finance, procurement, HR)
Focus more on high-risk areas like cash handling, inventory, contracts
5. Perform Audit Fieldwork
Review documents (vouchers, ledgers, payrolls, invoices)
Verify transactions, contracts, assets
Conduct test checks and sample-based verifications
Evaluate compliance with laws (GST, Companies Act, Income Tax)
6. Document Findings
Record discrepancies, control weaknesses, policy violations
Maintain audit evidence
Discuss preliminary observations with relevant departments
7. Draft Audit Report
Include:
Executive summary
Detailed observations
Impact and risk of findings
Recommendations for improvement
Management response (if applicable)
8. Submit Final Audit Report
Present report to Audit Committee/Board of Directors
Highlight critical and repetitive issues
Recommend timelines for corrective actions
9. Follow-Up
Track whether recommendations are implemented
Conduct follow-up audits if required
Report unresolved issues to top management
10. Maintain Records
Keep all reports, working papers, and evidence securely for future reference
Ensure confidentiality
Tools Often Used:
Tally, SAP, ERP systems
MS Excel or Audit Management Software
Checklists & Risk Control Matrices (RCM)
International Taxation
With the ever-growing importance of India in international trade, infrastructure investments, technical collaborations, joint ventures, M&A, private equity investments and portfolio investments, the need for structured and researched international tax advice on transactions is very important.
We work closely with many Indian companies on their international joint ventures and agreements to determine the most tax efficient way to structure the agreements and the transactions bearing in mind the business needs of the clients. We also work extensively with foreign companies planning to setup operations in India or provide technical service to Indian companies.
We understand that various sectors such as infrastructure and other sectors that involve acquiring technical knowledge and collaboration from foreign experts need special care while drafting agreements and planning the business operation.
IGSK & Associates helps high net worth individuals, companies and professionals by offering comprehensive advice, consulting and compliance services in international tax planning together with administrative services, advising on entry strategies, compliance with Indian transfer pricing norms, certification work, etc.
Due to the differing nature of tax treaties between different countries, it is possible that acquiring know-how, rented equipment, etc. from one country may be more tax efficient than from another country. This analysis may help in negotiating with bidders and also possibly restructuring the mode of the transaction to be more tax efficient.
Summary of key provisions of International Taxation in India as per the Income Tax Act, 1961:
International Taxation: Key Provisions under Income Tax Act, 1961 (India)
1. Residential Status [Section 6]
Determines taxability of global income.
Categories:
Resident and Ordinarily Resident (ROR) – Global income taxable.
Resident but Not Ordinarily Resident (RNOR) – Only Indian income + foreign income from business controlled from India is taxable.
Non-Resident (NR) – Only income received or accrued in India is taxable.
2. Scope of Total Income [Section 5]
Residents (ROR): Taxed on global income.
NR & RNOR: Taxed only on income that is:
Received in India,
Accrues/arises in India, or
Deemed to accrue/arise in India.
3. Deemed to Accrue or Arise in India [Section 9]
Certain incomes are treated as Indian income even if earned abroad, such as:
Income through or from business connection in India.
Fees for technical services (FTS), royalty, or interest received from Indian sources.
Salary for services rendered in India.
4. Double Taxation Relief
A. Unilateral Relief [Section 91]
Provided if there’s no DTAA.
Resident can claim relief for tax paid abroad on doubly taxed income.
B. Bilateral Relief [Section 90/90A]
Provided through Double Taxation Avoidance Agreements (DTAAs).
India has DTAA treaties with 90+ countries.
Relief methods:
Exemption Method
Tax Credit Method
5. Transfer Pricing Regulations [Sections 92–92F]
Applicable to international transactions between associated enterprises (AEs):
Must be at arm’s length price (ALP).
Documentation requirements (Form 3CEB).
Penalties for non-compliance.
6. Specified Domestic Transactions [SDTs]
Transfer pricing applies even to domestic transactions (above certain limits) between related parties.
7. Withholding Tax (TDS) for NRs
Section 195: TDS on payments (e.g., interest, royalty, FTS) to non-residents.
Requires determining taxability under IT Act + DTAA.
Form 15CA/15CB needed for foreign remittances.
8. Equalisation Levy
Aimed at taxing digital services availed from non-residents:
6% on online advertising (2016).
2% on e-commerce supply/services (2020 onwards).
Not part of Income Tax Act but relevant for international taxation.
9. GAAR (General Anti-Avoidance Rules) [Section 95-102]
Applicable to arrangements primarily for avoiding tax.
Gives wide powers to tax authorities to deny tax benefits.
10. BEPS & MLI
India is a part of the OECD Base Erosion and Profit Shifting (BEPS) project.
Signed the Multilateral Instrument (MLI) to modify DTAAs for anti-abuse measures.
11. Advance Pricing Agreements (APA) [Section 92CC]
Helps taxpayers get certainty on future transfer pricing methods for international transactions.
Types: Unilateral, Bilateral, Multilateral.
12. Filing & Compliance
Non-residents and foreign companies may need to file ITR if they earn income from India.
Form 3CEB for transfer pricing audit.
Form 3CE for royalty, FTS, interest taxation opt-out under DTAA.
Summary Table
| Concept | Section / Rule | Applicability |
|---|---|---|
| Residential Status | Sec 6 | Determines tax scope |
| Global Income Taxability | Sec 5 | Only ROR taxable on global income |
| Deemed Indian Income | Sec 9 | FTS, Royalty, Salary, etc. |
| DTAA | Sec 90/90A | Bilateral treaty relief |
| Unilateral Relief | Sec 91 | Tax relief without DTAA |
| TDS on NR Payments | Sec 195 | TDS required unless exempt by DTAA |
| Transfer Pricing | Sec 92–92F | Arm’s length price for AE transactions |
| Equalisation Levy | Finance Act | Digital services by non-residents |
| GAAR | Sec 95–102 | Anti-avoidance measures |
| APA | Sec 92CC | Advance pricing certainty |
Retainership Services / Virtual CFO Services
RETAINERSHIP SERVICES:-
We provide biannual or annual Retainership services to our clients for various advisory or secretarial services. We hold expertise in offer Business Retainership services for maintaining secretarial records and statutory registers under the company act 2013. Apart from this, we offer services for preparation and filing of Income Tax Returns, Sales Tax, GST returns, Accounting, MIS reporting, TDS Management and more legal tasks that are done for reputed clients in the market.
VIRTUAL CFO SERVICES:–
1.Some Important Questions
Are you able to sufficiently track and analyze your company’s growth and profits?
Do you understand how to use this information to your advantage so that your business can be more profitable?
Are you completing and reporting accurate financial information in a timely manner?
Do you need assistance projecting your cash flow and profits that may have an impact on the future growth of your business?
2.What your Business Needs
A growing business needs a qualified chartered accountant with some experience to guide and supervise his finance team. Further, it needs an MIS which is a combination of monthly profit and loss account & balance sheet with ratios to understand how the business is progressing.
The business also needs a senior finance person who can help review the business and discuss MIS. Generally, mid or large organizations have a Chartered Accountant with multiple years of experience to handle above functions. However, not every business can afford a full time CFO.
3.Who is Virtual CFO ?
As a virtual CFO of your Company, in addition to above we ensure that all your accounting records and statutory compliances are up to date and in consonance with the accounting standards and applicable laws.
On behalf of the management, our team monitors the effective deployment of company funds & ensuring efficient use coupled with zero leakages.
We ensure financial effectiveness on a daily basis!
4.Key Deliverables under Virtual CFO Services
(a) Internal Processes
Setting up Standard Operating Process for Bookkeeping and documentation
Weekly visits for accounting
MIS
Business Plan and Budgeting
Payroll Services
(b) Statutory Compliances
- GST Compliances
- TDS Compliances
- Profession Tax Compliances
- Income Tax Compliances
- PF/ESIC Compliances
- Compliances under Companies Act
Finally, Our Team acknowledges that a good virtual CFO recognizes that he or she is, most likely, a temporary solution. A virtual CFO who does his job well will ultimately become redundant as the company grows into a position to hire an actual full-time CFO. A virtual CFO can help transition your company from an outsourced to an in-house chief financial officer positionKey benefits of taking Virtual CFO:
1. Cost-Effective
Hiring a full-time CFO can be expensive.
Virtual CFO services offer high-level financial expertise at a fraction of the cost.
2. Strategic Financial Planning
Helps in budgeting, forecasting, and financial modeling.
Aligns financial strategy with business goals for sustainable growth.
3. Expert Financial Oversight
Ensures accurate financial reporting, compliance, and internal controls.
Assists in reviewing financial statements, reducing risks of errors or fraud.
4. Better Cash Flow & Working Capital Management
Monitors and optimizes cash flow and working capital cycles.
Avoids liquidity issues and improves financial stability.
5. Fundraising & Investor Support
Assists in preparing for investor pitches, due diligence, and financial documentation.
Connects with investors or lenders for equity or debt funding.
6. Tax Planning & Regulatory Compliance
Helps in effective tax planning and filing returns as per Indian laws.
Ensures compliance with GST, Income Tax, MCA, FEMA, and other regulations.
7. Business Performance Monitoring
Implements KPIs and dashboards to track performance.
Provides regular financial health reports to decision-makers.
8. Scalability Support
Supports business expansion, acquisitions, or new verticals.
Helps build scalable financial systems and processes.
9. Risk Management & Cost Control
Identifies financial risks, frauds, or wastage.
Suggests ways to optimize cost structure.
10. Access to a Team of Experts
Many Virtual CFO providers offer a team approach, including CAs, CS, and legal experts.
Gives 360° financial and compliance support.
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Company Law Related Services
Company Law related statutory compliances like maintenance of Statutory Registers namely Fixed Assets Register, Shareholders’ Register, Minutes Books for Board Meetings and Annual General Meetings. Also Share Certificate Book and Common Seal of the Company, filing of Allotment Returns, Annual Returns and Audited Accounts with Registrar of Companies, as well as any other routine filings which may be required for compliance of Registrar of Companies formalities.
Company Law Matters
Company legal compliance is a complex area in itself. We help firms to interpret and comply with the rules and regulations. There are many sections of the Companies Act, where we can provide guidance and/or assistance. Services offered by us include:
Company Formation (viz, Private Limited, Public Limited, wholly owned subsidiary company, One Person Company (OPC), Limited Liability Partnership (LLP), etc.)
- Seeking Licenses and Approvals for start-up entities
- Statutory provisions relating to various meetings like Board Meetings, Statutory Meetings
- Company Secretarial matters such as filing necessary returns with MCA
- Petitions to Company Law Board
Here is a summary of the key important compliances for a Private Limited Company and LLP under the Companies Act, 2013 and Limited Liability Partnership Act, 2008 respectively:
For Private Limited Company (under Companies Act, 2013):
Annual Compliances
Compliance Description Due Date Board Meetings Minimum 4 meetings in a year (1 every quarter) Throughout the year Annual General Meeting (AGM) Mandatory for companies other than OPCs Within 6 months from financial year end (by 30th Sept) Form AOC-4 Filing of Financial Statements Within 30 days of AGM Form MGT-7 Filing of Annual Return Within 60 days of AGM DIR-3 KYC KYC of all directors By 30th September every year MBP-1 Disclosure of Interest by Directors First board meeting every year Form DPT-3 Return of deposits/loan from directors etc. By 30th June ADT-1 Appointment/reappointment of auditor Within 15 days of AGM (if applicable) Event-Based Compliances
Triggered upon specific events:
Change in directors (DIR-12)
Allotment of shares (PAS-3)
Change in registered office (INC-22)
Increase in authorized capital (SH-7)
Change in auditor (ADT-3)
Related party transactions (Form AOC-2)
For LLP (under LLP Act, 2008 and MCA rules):
Annual Compliances
Compliance Description Due Date Form 11 (Annual Return) Summary of partners and basic details By 30th May every year Form 8 (Statement of Account & Solvency) Financial statement of LLP By 30th October DIR-3 KYC KYC of all designated partners By 30th September every year Income Tax Return Mandatory if income exceeds exemption limit By 31st July (if not subject to audit) / 31st Oct (if audited) Event-Based Compliances
Admission/retirement of partner (Form 3 & Form 4)
Change in LLP agreement (Form 3)
Change in registered office (Form 15)
Conversion into company or vice-versa
Penalties for Non-Compliance
Late fees of ₹100/day for each form under MCA for delay.
Additional penalties under Income Tax Act, FEMA, and GST, if applicable.
Disqualification of directors in case of persistent non-compliance.
Goods & Service Tax
Goods and Services Tax (GST) is a revolutionary tax reform in India that has completely transformed the way businesses operate. With its implementation, businesses have had to change their accounting practices to comply with the new tax regime. As a result, many businesses are looking for reliable and efficient GST services to ensure compliance and save costs. That’s where IGSK & Associates comes in.
Recognized as a leading GST Consultant in Mumbai, we specialize in GST compliance and advisory. IGSK & Associates is a leading provider of GST services. Our team of experts provides tailored solutions to ensure compliance with GST regulations while optimizing costs. We work closely with our clients to understand their business needs and provide customized solutions that are efficient, cost-effective, and practical.
At IGSK & Associates, we understand the significance of GST in the current business landscape. Our seasoned professionals bring a wealth of knowledge and expertise to the table, making us a reliable choice for GST consulting services in Mumbai. We cater to businesses across various sectors, offering tailored solutions to meet their unique needs.
Our Services
GST Registration Services
Navigating the GST registration process can be intricate, but with IGSK & Associates by your side, it becomes seamless. We assist businesses in Mumbai with the GST registration procedure, ensuring compliance with all regulatory requirements. Our team ensures that your registration is processed efficiently, allowing you to focus on your core business activities.
GST Filing Services
Accurate and timely GST filing is crucial for maintaining compliance and avoiding penalties. IGSK & Associates provides comprehensive GST filing services in Mumbai, handling the entire process with precision. Our experts stay updated on the latest GST norms, making certain that your returns are filed accurately and promptly.
GST Compliance Audits
Regular GST compliance audits are essential to identify and rectify any discrepancies in your tax filings. Our CA firm conducts thorough GST compliance audits in Mumbai to assess your business’s adherence to GST regulations. This proactive approach helps in preventing potential issues and ensures a smooth relationship with tax authorities.
Why Choose IGSK & Associates?
Expertise and Experience
With years of experience in the field, our team of Chartered Accountants possesses in-depth knowledge of GST laws and regulations. We leverage our expertise to provide reliable and effective solutions to our clients.
Personalized Approach
We understand that each business is unique, and a one-size-fits-all approach doesn’t work for GST consulting. Our team takes the time to understand your specific requirements and tailors our services accordingly, ensuring maximum value for your investment.
Technology-driven Solutions
IGSK & Associates embraces technology to streamline our GST consulting services. Our use of advanced tools and software enhances efficiency, accuracy, and transparency in all our dealings.
Client-Centric Focus
Client satisfaction is at the core of our values. We prioritize open communication, responsiveness, and a client-centric approach to build lasting relationships with businesses in Mumbai.
Here are the key important GST compliances for Private Limited Companies and LLPs under the GST Act, 2017 in India:
1. GST Registration (Section 22–24)
Mandatory if aggregate turnover exceeds the threshold:
₹40 lakhs (goods),
₹20 lakhs (services), or
₹10 lakhs (for special category states).
Compulsory for certain businesses (inter-state supply, e-commerce, etc.) regardless of turnover.
2. Issuance of GST-Compliant Invoices
Must issue tax invoices with prescribed details:
GSTIN, HSN/SAC code, rate of tax, place of supply, etc.
Invoice must be issued within prescribed time (usually before or at the time of supply).
3. Monthly/Quarterly GST Returns
Depending on turnover and scheme:
| Return Type | Frequency | Purpose |
|---|---|---|
| GSTR-1 | Monthly/Quarterly | Details of outward supplies (sales) |
| GSTR-3B | Monthly | Summary return with tax payment |
| GSTR-9 | Annual | Annual consolidated return |
| GSTR-9C | Annual | GST audit reconciliation (if turnover > ₹5 Cr) |
4. Input Tax Credit (ITC) Reconciliation
Claim ITC only if:
Supplier has uploaded invoice in GSTR-1,
Payment made within 180 days,
Goods/services received.
Reconcile GSTR-2B with purchase records monthly.
5. Payment of GST
Payment of GST due (based on GSTR-3B) must be made by the 20th of the following month.
Use electronic cash/credit ledger on GST portal.
6. E-Way Bill Compliance
Mandatory for transportation of goods valued above ₹50,000.
Must generate E-Way Bill using the GST portal or app.
7. GST Audit (If turnover > ₹5 Crore)
File GSTR-9C with reconciliation statement audited by a CA or CMA.
Maintain proper books for 6 years.
8. Maintenance of Records
Maintain books of accounts, tax invoices, and returns for at least 6 years from the due date of filing annual return.
9. Reverse Charge Mechanism (RCM)
Pay GST under RCM for certain notified supplies (e.g., legal services, GTA).
Cannot claim ITC on RCM unless payment is made.
10. Display of GSTIN
GSTIN must be displayed at the business premises and mentioned on all tax documents.
11. Timely Response to Notices
Must respond to GST notices (SCN, ASMT, DRC, etc.) within stipulated timelines to avoid penalties or cancellation.
12. LUT for Export (if applicable)
File Letter of Undertaking (LUT) to export goods/services without IGST.
13. GST Rate & HSN/SAC Compliance
Apply correct GST rate and HSN/SAC code on all invoices.
Penalties apply for incorrect classification.
14. Composition Scheme (if opted)
Applicable if turnover ≤ ₹1.5 crore.
File CMP-08 quarterly and GSTR-4 annually.
Cannot collect tax from customers or claim ITC.
Penalties for Non-Compliance:
Late fee: ₹50 per day (₹20 if NIL return)
Interest: 18% per annum on delayed tax
Penalties for fraud, evasion, or non-filing
Direct Tax Consultancy
The Tax Consultancy Division comprises of Partners, Directors, Senior Managers, Associates and other qualified and experienced personnel. The services offered in Tax Consultancy include –
- Corporate Taxation Advisory Services: Advising large Companies / Corporations on their income tax matters, including foreign taxation matters to Indian corporations.
- Tax Management Services: Attending to the matters of tax laws compliance.
- Tax Planning: Advising clients on structuring tax-efficient business planning, including restructuring of business e.g. amalgamations/ merger etc.
- Services relating to Foreign Collaboration Agreements, NRIs taxation, Double Tax Avoidance Agreements Reliefs etc.
Here is a summary of key important provisions under the Income Tax Act, 1961 for a Resident Assessee in India:
1. Residential Status – Section 6
An individual is considered resident if:
Present in India for 182 days or more during the financial year, or
Present in India for 60 days or more during the financial year and 365 days or more in the preceding 4 years.
Resident and Ordinarily Resident (ROR) vs Resident but Not Ordinarily Resident (RNOR) – has implications on scope of income taxable.
2. Taxability of Income – Section 5
For a Resident (ROR):
Global income is taxable in India.
For RNOR:
Income earned in India or from a business controlled in India is taxable.
3. Income Heads – Section 14
Tax is levied under 5 heads:
Income from Salary
Income from House Property
Profits and Gains of Business or Profession
Capital Gains
Income from Other Sources
4. Exemptions – Section 10
Important exemptions include:
HRA (Section 10(13A))
Leave encashment (Section 10(10AA))
LTA (Section 10(5))
Agricultural income (Section 10(1))
Dividend income up to ₹10 lakh (now taxable from AY 2021-22 onwards under normal slab)
5. Deductions – Chapter VI-A
Common deductions for residents:
Section 80C – up to ₹1.5 lakh (LIC, PPF, ELSS, etc.)
Section 80D – Health insurance premium
Section 80G – Donations to charitable institutions
Section 80TTA/80TTB – Interest on savings account (₹10,000/₹50,000 for senior citizens)
Section 80E – Interest on education loan
Section 80CCD(1B) – NPS additional ₹50,000 deduction
6. Slab Rates for Individuals (AY 2025-26)
Old Regime (with deductions):
Up to ₹2.5 lakh – Nil
₹2.5–5 lakh – 5%
₹5–10 lakh – 20%
Above ₹10 lakh – 30%
New Regime (Section 115BAC):
Lower rates but without major deductions and exemptions.
Up to ₹7 lakh income is tax-free with rebate u/s 87A.
7. Income from House Property
Standard deduction of 30% on Net Annual Value
Interest deduction on home loan:
Section 24(b): up to ₹2 lakh for self-occupied house
8. Capital Gains
Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) rules depend on asset type.
Exemptions under Section 54, 54EC, 54F for reinvestment in residential property or bonds.
9. Presumptive Taxation (For Residents)
Section 44AD – for small businesses
Section 44ADA – for professionals
Simplified return filing for eligible resident individuals.
10. Senior Citizen Benefits
Higher exemption limits
No advance tax if not having business income (for resident senior citizens – Section 207)
Section 80TTB – interest deduction up to ₹50,000
11. Filing of ITR – Section 139
Mandatory for residents if:
Total income > Basic Exemption Limit
Holding foreign assets or bank accounts
TDS deducted, or income exceeds limits under specified conditions
12. TDS and Advance Tax
Residents must comply with:
Advance tax (Section 208)
TDS on rent, interest, etc. (various sections like 194A, 194I)
13. Penalties and Prosecution
Section 270A – Penalty for under-reporting
Section 234A/B/C – Interest for delay in filing or payment
Section 276CC – Prosecution for willful failure to file returns
Here is a summary of the high cash transaction implications under the Income Tax Act, 1961:
HIGH CASH TRANSACTION IMPLICATIONS UNDER INCOME TAX ACT, 1961
1. Section 269SS – Restriction on Cash Loans/Deposits
Prohibition: No person shall take or accept loan, deposit, or any sum of ₹20,000 or more in cash.
Mode Allowed: Only through account payee cheque/draft or electronic clearing system (ECS)/banking channels.
Penalty: Equal to the amount of loan/deposit (u/s 271D).
2. Section 269ST – Restriction on Receiving High Cash Amounts
Threshold: Cannot receive ₹2,00,000 or more in cash:
In a single transaction, or
In aggregate from a person in a day, or
In relation to a single event or occasion.
Mode Allowed: Must receive via account payee cheque/bank draft/ECS/other prescribed modes.
Exemptions: Government, Banks, Post Office, etc.
Penalty: 100% of the amount received (u/s 271DA).
3. Section 40A(3) – Disallowance of Business Expenditure
Rule: Cash payment exceeding ₹10,000 (or ₹35,000 for transporters) to a single person per day is not allowed as business expenditure.
Penalty: Such expenditure is disallowed, increasing taxable income.
4. Section 43(1) – Cash Payment for Fixed Assets
Effect: If an asset is purchased for business in cash over ₹10,000, it is not added to the asset cost, hence no depreciation allowed.
5. Section 269T – Restriction on Cash Repayment of Loans/Deposits
Limit: No repayment of loan or deposit ₹20,000 or more in cash.
Penalty: Equal to the amount repaid (u/s 271E).
6. Section 285BA – Statement of Financial Transactions (SFT)
Banks, Co-ops, Registrars, Mutual Funds, etc. must report:
Cash deposits > ₹10 lakh in savings accounts in a year
Cash payments > ₹10 lakh for FD, ₹1 lakh for credit card, etc.
Implication: May trigger scrutiny or notice from IT Department.
7. Section 194N – TDS on Cash Withdrawals
Rule: TDS @ 2% on cash withdrawals exceeding:
₹1 crore (for regular filers)
₹20 lakh (for non-filers of ITR in past 3 years; 2% on ₹20L–₹1Cr and 5% beyond ₹1Cr)
8. Other Practical Implications
Scrutiny and Notices: High cash deposits/withdrawals may lead to income tax scrutiny.
Presumptive Tax Schemes: May face rejection if actual turnover/profit pattern doesn’t align.
Real Estate & Jewelry: Cash dealings are closely monitored and may trigger PAN/Aadhaar requirement and SFT reporting.
Summary Table
Provision Threshold Implication 269SS ₹20,000 No cash loan/deposit 269ST ₹2,00,000 No cash receipt from single person/event 269T ₹20,000 No cash loan/deposit repayment 40A(3) ₹10,000 Cash expenses not allowed 43(1) ₹10,000 Cash asset purchase not eligible for depreciation 194N ₹1 Cr / ₹20L TDS on cash withdrawals 285BA Varies Reporting of cash transactions Here’s a comprehensive list of High-Value Transactions that are monitored and reported under the Income Tax Act, 1961, through Form 26AS or Annual Information Statement (AIS), primarily to track tax evasion and ensure proper filing:
List of High-Value Transactions Reported to Income Tax Department
Sl. No. Nature of Transaction Threshold Limit Reporting Authority 1 Cash deposit in savings bank account ₹10,00,000 or more in a financial year Banks, Co-operative banks 2 Cash deposit in current account ₹50,00,000 or more in a financial year Banks, Co-operative banks 3 Fixed Deposits (excluding renewals) ₹10,00,000 or more in a financial year Banks, Post Office, Co-operative banks 4 Credit Card Bill Payments (Cash) ₹1,00,000 or more in a financial year Banks, Co-operative banks, Credit card co. 5 Credit Card Bill Payments (Other than Cash) ₹10,00,000 or more in a financial year Banks, Co-operative banks, Credit card co. 6 Purchase of shares, mutual funds, bonds, debentures ₹10,00,000 or more in a financial year Companies, Mutual Funds, RBI 7 Purchase of foreign currency ₹10,00,000 or more in a financial year Authorised dealers, Money changers 8 Sale or purchase of immovable property ₹30,00,000 or more per transaction Registrar/Sub-registrar (via Form 26QB) 9 Cash received for sale of goods or services ₹2,00,000 or more per transaction Any person liable for audit u/s 44AB 10 Investment in Mutual Funds ₹10,00,000 or more in a financial year Mutual Fund Companies 11 Cash withdrawal from bank account ₹1 crore or more in a financial year Banks, Co-operative banks, Post Office 12 Dividend Income ₹5,000 or more (TDS deducted & reported) Companies paying dividends 13 Interest Income (FDs, Bonds, etc.) ₹5,000 or more (TDS deducted & reported) Banks, Post Offices, etc. How Are These Tracked?
Reported under: Statement of Financial Transactions (SFT)
Relevant Forms: Form 26AS, AIS (Annual Information Statement)
Reporting due date: 31st May following the financial year
Consequences of Non-compliance or Mismatch
Scrutiny/Notice from Income Tax Department
Penalty under Section 271FAA for non-reporting (₹500 per day)
Higher TDS/TCS rates under Section 206AB/206CCA
Possible reassessment or audit of ITR
ROC Compliances
Companies and LLPs should take care and adhere to the compliances within the specified due dates. If the companies or LLPs fail to fulfil the compliance requirements, then a heavy penalty will be imposed on them. Thus, the companies and LLPs should keep in mind the ROC compliances to be followed annually. IGSK & Associates becomes helping hand for the ROC Compliances.
The ROC Compliances of MCA include –
- Business formation services like Private Limited company, LLP, One person company, sec 8 companies (NGO).
- Compliances and corporate governance.
- Corporate secretarial services.
- ROC Annual return filing for Private Limited , Sec 8 Companies.
- Annual Statement of Account & Annual Return of LLP , One Person company.
- Change of Registered Address of companies.
- Appointment and Resignations of directors.
- Appointment of auditors, Commencement of business, Directors KYC
- Other all ROC Compliances under MCA
Here is a List of ROC (Registrar of Companies) Compliances under the Companies Act, 2013 applicable to Private Limited Companies, Public Companies, and OPCs:
Annual ROC Compliances
Compliance Form Timeline Applicability Appointment of Auditor ADT-1 Within 15 days of AGM All companies Filing of Annual Return MGT-7 / MGT-7A Within 60 days from AGM MGT-7: Public & Pvt Ltd MGT-7A: Small Co./OPC Filing of Financial Statements AOC-4 / AOC-4 CFS / AOC-4 XBRL Within 30 days from AGM All companies Director KYC DIR-3 KYC / Web KYC By 30th September For all Directors holding DIN Disclosure of Interest by Directors MBP-1 First Board Meeting or every year All companies Disclosure of Non-disqualification DIR-8 Before appointment/reappointment All companies Event-Based ROC Compliances
Event Form Timeline Change in Registered Office INC-22 Within 15 days Change in Director/KMP DIR-12 Within 30 days Increase in Authorised Capital SH-7 Within 30 days Allotment of Shares PAS-3 Within 15 days Creation/Modification of Charge CHG-1 Within 30 days Satisfaction of Charge CHG-4 Within 30 days Resignation of Director DIR-12 Within 30 days Change in Company Name INC-24 After approval of special resolution Conversion of Company Type INC-27 As applicable Filing Resolutions and Agreements MGT-14 Within 30 days (for applicable resolutions) Other Important Compliances
Compliance Form Due Date Return of Deposits/Loan (if any) DPT-3 By 30th June every year MSME Return (if applicable) MSME Form I Half-yearly (April & October) Active Company Tagging INC-22A (ACTIVE) One-time / if reintroduced Commencement of Business (for new co.) INC-20A Within 180 days of incorporation Penalty for Non-Compliance:
Late filing fees of ₹100 per day per form
Additional penalties and prosecution depending on the nature of non-compliance
Let me know if you want:
Format for each form
Applicability by company type (Pvt Ltd, Public, OPC)
Editable Excel compliance tracker
Here’s a detailed summary of penalties for Private Limited Companies under the Companies Act, 2013 and MCA (Ministry of Corporate Affairs):
Common Penalties for Private Limited Companies (as per Companies Act, 2013)
Compliance Default Section Penalty Details Non-filing of Annual Return (MGT-7) Section 92 ₹100/day of default (No maximum limit); Company and Officer both liable. Non-filing of Financial Statements (AOC-4) Section 137 ₹100/day of default (No max cap); additional penalties may apply. Not holding Annual General Meeting (AGM) Section 99 Company: ₹1 lakh + ₹5,000/day for continuing default; Officer in default: same. Default in Auditor Appointment Section 139 ₹25,000 to ₹5 lakh for company; Every officer in default: imprisonment up to 1 year or fine ₹10,000–₹1 lakh. Failure to maintain books of accounts Section 128 Company: ₹50,000–₹5 lakh; Officers in default: imprisonment up to 1 year or fine ₹50,000–₹5 lakh or both. Failure to file Board Resolutions (MGT-14) Section 117 Company: ₹1 lakh + ₹500/day (Max ₹25 lakh); Officers: ₹50,000 + ₹500/day (Max ₹5 lakh). Delay in Director KYC (DIR-3 KYC) Rule 12A of Companies (Appointment & Qualification of Directors) Rules ₹5,000 late fee per DIN (after due date). Not appointing CS (if required) Section 203 Company: ₹5 lakh; Officers: ₹50,000 + ₹1,000/day (Max ₹5 lakh). Delay in filing INC-22 (Registered Office Address) Section 12 ₹1,000/day of delay (Max ₹1 lakh for company and each officer). Non-appointment of Auditor in 1st AGM Section 139(1) ₹25,000 to ₹5 lakh; Officer in default can also be imprisoned. DIN non-compliance Section 155 Penalty of ₹50,000 to the person who acts as a director without a valid DIN. Important Notes:
Late filing fee for MCA forms (e.g., AOC-4, MGT-7, etc.) is ₹100 per day per form (no upper cap).
MCA imposes additional penalties for fraudulent activities under Section 447.
From July 2022, MCA introduced adjudication for many sections where penalties are levied by the Registrar of Companies (RoC).
MCA also applies disqualification of directors if company does not file financial statements/annual returns for 3 consecutive years (Section 164(2)).
Here is a summary of penalties for Limited Liability Partnerships (LLPs) under the Ministry of Corporate Affairs (MCA) and LLP Act, 2008 (as amended):
General Penalty under LLP Act, 2008
Section 74: If no specific penalty is provided for any default:
LLP and its partners are liable to pay a fine up to ₹5,000, and
A further fine of ₹100 per day during the continuation of the default (maximum limit varies case to case).
Common Penalties for LLP Non-Compliances
Non-Compliance Relevant Form Penalty Delay in filing Annual Return Form 11 ₹100 per day (no upper limit) Delay in filing Statement of Accounts and Solvency Form 8 ₹100 per day (no upper limit) Non-filing of Incorporation document Form FiLLiP ₹10,000 + ₹100/day (for continuous default) Non-maintenance of books of accounts – Fine of ₹25,000 – ₹5,00,000 for LLP and every designated partner Failure to file changes in partners/designated partners Form 4 ₹100 per day Failure to file LLP Agreement/changes to it Form 3 ₹100 per day Non-appointment of designated partner – ₹10,000 + ₹100/day (continuing default) Non-compliance with order of Tribunal (NCLT) – Fine up to ₹5 Lakhs and/or imprisonment up to 6 months Penalty for Non-filing of ROC Returns (Post 2022 Amendment)
Due to the LLP (Amendment) Act, 2021 effective from April 1, 2022, the MCA introduced:
De-criminalization of minor offenses
Increased focus on monetary penalties
E.g., Filing default → monetary penalty instead of imprisonment
Additional Notes:
There is no cap on late filing fee of ₹100/day, hence penalties can accumulate quickly.
Small LLPs and Start-up LLPs may receive relaxed penalties under MCA schemes like CFSS (when applicable).
Non-compliance may also lead to LLP strike off and disqualification of partners.
Here is a summary of penalties applicable to Section 8 Companies under the Companies Act, 2013 (MCA) in case of non-compliance:
1. Penalty for Non-Compliance of Conditions of Section 8 (Sec 8(11))
If a Section 8 Company violates any of the conditions for its license (e.g. non-profit objective, misuse of profits), the Central Government may:
Revoke the license, and
Direct the company to:
Convert into another company type (private/public)
Wind up under the Insolvency and Bankruptcy Code (IBC)
Penalty:
Particulars Penalty Company ₹10 lakhs to ₹1 crore Officers in default ₹25,000 to ₹25 lakhs each If fraud is found Prosecution under Section 447 (Imprisonment up to 10 years + fine up to 3 times the amount involved) 2. Penalty for Not Filing Annual Returns / Financial Statements (Sec 92, 137)
Form Due Date Penalty for Default AOC-4 (Financial Statement) Within 30 days of AGM ₹100 per day (no upper limit) MGT-7 (Annual Return) Within 60 days of AGM ₹100 per day (no upper limit) 3. Penalty for Not Holding AGM (Section 96)
Even Section 8 companies are required to hold an AGM (Annual General Meeting).
Penalty:
Company + Every Officer in Default: Up to ₹1 lakh
Plus continuing default: ₹5,000 per day
4. Penalty for Non-Maintenance of Statutory Registers
Non-compliance with Section 88 (Register of Members etc.)
Penalty:
Company + Officer in Default: ₹50,000 each
Plus ₹1,000 per day of continuing default
5. Penalty for Contravention of CSR (if applicable) – Section 135
If Section 8 company is covered under CSR applicability and fails to:
Spend the required amount, or
Transfer the unspent amount to specified funds,
Penalty:
Company: ₹50,000 to ₹25 lakh
Officer in default: ₹50,000 to ₹5 lakh or imprisonment up to 3 years or both
6. Other General Penalties
Non-compliance Penalty Not appointing statutory auditor (Section 139) ₹25,000 – ₹5 lakh (for company) + Officer: ₹10,000 – ₹1 lakh Failure to report changes (e.g. DIR-12, INC-22) ₹100 per day per form (late filing fee) Not holding board meetings as per Section 173 ₹25,000 per officer in default If you’d like, I can also provide a compliance checklist to help avoid these penalties.
BUSINESS SET UP IN UAE
Setting up a business in the UAE can be done through two main jurisdictions: Mainland and Freezone. Each has distinct features, benefits, regulatory authorities, and business scopes. Below is a detailed comparison of UAE Mainland vs Freezone business setup to help you decide the right jurisdiction for your needs:
1. OVERVIEW
| Aspect | UAE Mainland | UAE Freezone |
|---|---|---|
| Jurisdiction | Regulated by the Department of Economic Development (DED) of respective Emirates | Regulated by the Freezone Authority (FZA) of specific Freezone |
| Business Scope | Can do business anywhere in UAE and internationally | Can do business only within Freezone or internationally (needs agent/distributor for mainland) |
| Ownership | 100% foreign ownership allowed (since 2021, for most activities) | 100% foreign ownership allowed |
| Office Requirement | Physical office space is mandatory | Flexi desk / Virtual office available |
| Government Authorities | DED, Ministry of Economy, Municipalities, etc. | Respective Freezone Authority |
| Visa Eligibility | No limit (depends on office space size) | Limited visas (depends on package/office size) |
2. COST COMPARISON
| Cost Head | Mainland Business | Freezone Business |
|---|---|---|
| License Cost | Moderate to High (varies by Emirate) | Starts from AED 12,000 to AED 25,000+ |
| Office Rent | Higher (physical office required) | Lower (Flexi-desk options available) |
| Visa Cost | Approx. AED 3,000 – AED 7,000 per visa | Similar, depending on Freezone policy |
| Renewal Fees | Applicable yearly | Applicable yearly |
3. TYPES OF LICENSES
| License Type | Mainland | Freezone |
|---|---|---|
| Commercial License | Yes | Yes |
| Industrial License | Yes | Yes (with warehouse facility) |
| Professional License | Yes | Limited to specific Freezones |
| Freelance Permit | No (not directly) | Yes (available in many Freezones) |
4. BUSINESS OPERATION SCOPE
| Operation | Mainland | Freezone |
|---|---|---|
| Within UAE Market | Allowed | Not allowed directly (need distributor) |
| Outside UAE (Export) | Allowed | Allowed |
| With Government Tenders | Allowed | Not directly allowed |
5. TAXATION AND COMPLIANCE
| Tax/Compliance | Mainland | Freezone |
|---|---|---|
| Corporate Tax (2023) | 9% if net profit > AED 375,000 | 0% to 9% (varies: some Freezones exempt) |
| VAT (5%) | Applicable if turnover > AED 375,000 | Applicable if turnover > AED 375,000 |
| Audit Requirement | Mandatory (for most businesses) | Varies by Freezone |
| Economic Substance Reg. | Yes | Yes (for relevant sectors) |
| UBO Disclosure | Yes | Yes |
6. VISA & EMPLOYMENT
| Category | Mainland | Freezone |
|---|---|---|
| Investor Visa | Available | Available |
| Employee Visas | Unlimited (depends on office size) | Limited (depends on package/office space) |
| Family Visa | Allowed | Allowed |
7. ADVANTAGES SUMMARY
Mainland Business Advantages:
Can trade anywhere in UAE directly
Bid for government projects
Unlimited employee visas
More recognition for local clients
Freezone Business Advantages:
Low setup cost (especially for startups)
100% foreign ownership guaranteed
Quick incorporation process
No import/export duties within Freezone
Easier bank account opening (in reputed zones)
8. BEST SUITED FOR:
| Business Type | Ideal Jurisdiction |
|---|---|
| Trading within UAE local market | Mainland |
| International export/import | Freezone |
| IT/Consulting, Freelancing | Freezone |
| Large scale manufacturing & distribution | Mainland |
| Startups, SMEs, low-cost setups | Freezone |
9. POPULAR FREEZONES IN UAE
| Emirate | Freezones |
|---|---|
| Dubai | DMCC, DAFZA, Dubai South, IFZA, Dubai Silicon Oasis |
| Abu Dhabi | ADGM, Masdar City, TwoFour54 |
| Sharjah | SAIF Zone, SPC |
| Ajman | AFZ |
| Ras Al Khaimah | RAKEZ |
| Fujairah | Creative City |
10. TIME FOR SETUP
| Task | Mainland | Freezone |
|---|---|---|
| Name Approval | 1–2 days | 1–2 days |
| License Issuance | 5–7 working days | 3–5 working days |
| Visa Processing | 7–10 days | 5–7 days |
| Total Setup Time | ~2 weeks | ~1 week |
CONCLUSION: WHICH ONE TO CHOOSE?
| If your goal is… | Choose |
|---|---|
| To sell goods/services across UAE directly | Mainland |
| To start a low-cost or freelance business | Freezone |
| To export/import or e-commerce only | Freezone |
| To work with government contracts | Mainland |
| To open business quickly and remotely | Freezone |
Here’s a detailed explanation of Corporate Taxation provisions in the UAE, as per the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, which came into effect from 1 June 2023:
1. Applicability of Corporate Tax in UAE
| Category | Applicability |
|---|---|
| Mainland Companies | Subject to Corporate Tax (CT) |
| Free Zone Companies | Subject to CT, but may enjoy 0% on Qualifying Income (conditions apply) |
| Branches of Foreign Companies | Subject to CT |
| Individuals | Only subject if conducting business activities generating turnover over AED 1 million |
2. Corporate Tax Rates in UAE
| Income Slab | Corporate Tax Rate |
|---|---|
| Net Taxable Income up to AED 375,000 | 0% (to support SMEs/startups) |
| Net Taxable Income above AED 375,000 | 9% |
| Large multinational companies with revenue > €750 million (approx. AED 3.15 billion) | 15% (as per OECD Pillar Two)** |
3. Exempt Entities
The following entities are exempt from corporate tax:
Government and government-controlled entities
Extractive businesses (oil, gas) if paying Emirate-level taxes
Public benefit entities (charities, non-profits) if approved
Qualifying investment funds
UAE pension and social security funds
Wholly owned UAE subsidiaries of exempt entities (subject to conditions)
4. Qualifying Free Zone Persons (QFZP)
Free Zone businesses can enjoy 0% CT on qualifying income, if they meet all of the following:
Maintain adequate substance in UAE
Derive qualifying income (defined by the UAE Cabinet)
Comply with transfer pricing and documentation rules
Do not elect to be taxed at normal rates
Qualifying Income may include:
Transactions with other Free Zone entities
Export of goods/services outside UAE
Income from certain financial activities
However, non-qualifying income (like income from the UAE mainland) is subject to 9% tax.
5. Calculation of Taxable Income
Based on accounting net profit as per IFRS (International Financial Reporting Standards)
Adjustments for:
Non-deductible expenses
Exempt income
Tax losses carried forward (up to 75% of taxable income)
Transfer pricing adjustments
6. Deductions Allowed
Some common deductible expenses:
Salaries and wages
Rent, utilities, business operating costs
Interest expense (capped at 30% EBITDA)
Bad debts (subject to conditions)
Depreciation/amortization of assets
7. Transfer Pricing Rules
Businesses must comply with arm’s length principle when transacting with related parties or connected persons. Documentation includes:
Master File
Local File
Disclosure forms in CT return
8. Tax Filing & Payment Timeline
| Requirement | Timeline |
|---|---|
| Tax Period | Generally aligned with financial year |
| Return Filing | Within 9 months from end of tax period |
| Tax Payment | Same deadline as return (within 9 months) |
| No advance tax or quarterly payments required currently |
9. Penalties
Non-compliance with UAE Corporate Tax Law can result in penalties such as:
Late filing of returns
Failure to maintain records
Transfer pricing violations
Underpayment or non-payment of tax
Fines vary from AED 10,000 to AED 50,000 or more depending on severity and repetition.
10. Key Things to Do Now
Businesses should:
Assess tax residency and structure
Identify qualifying vs non-qualifying income
Prepare IFRS-compliant financial statements
Maintain proper documentation and books of accounts (minimum 7 years)
Evaluate Transfer Pricing exposure
VAT Taxation Provisions in UAE – Detailed Overview (as per Federal Decree-Law No. 8 of 2017 on VAT and its amendments)
The United Arab Emirates (UAE) introduced Value Added Tax (VAT) on 1st January 2018. The Federal Tax Authority (FTA) governs VAT in the UAE.
1. VAT Rate Structure in UAE
| Type of Supply | VAT Rate |
|---|---|
| Standard Rate Supplies | 5% |
| Zero-Rated Supplies | 0% |
| Exempt Supplies | No VAT |
2. Standard Rated (5%) VAT
Applies to most goods and services unless specifically zero-rated or exempt. Examples:
Electronics
Automobiles
Clothing
Food & beverages (except essential ones)
Hotel & restaurant services
Professional services (legal, consulting)
3. Zero-Rated Supplies (0%)
Supplies taxed at 0% but input tax credit is allowed.
Examples:
Exports of goods and services outside GCC VAT countries
International transportation (airlines, ships)
Certain healthcare & education services
Newly constructed residential properties (first supply within 3 years)
Crude oil and natural gas
4. Exempt Supplies (No VAT, No Input Credit)
VAT is not charged, and no input tax credit is allowed.
Examples:
Residential property rentals (after first supply)
Local passenger transport (metro, buses)
Certain financial services (banking, life insurance)
5. VAT Registration in UAE
Mandatory Registration
If annual taxable turnover exceeds AED 375,000
Voluntary Registration
If turnover exceeds AED 187,500, but below mandatory threshold Note:
Registration is done online on the FTA Portal
Both UAE mainland and free zone businesses must register if eligible, except for designated zones (discussed below)
6. VAT in UAE Free Zones
UAE has “Designated Zones” which are treated as outside the UAE for VAT purposes under specific conditions (like customs control, physical boundaries). Supplies between designated zones may be VAT-free.
However, transactions within the UAE or to non-designated zones are subject to VAT.
7. VAT Returns and Compliance
VAT Return Filing: Quarterly or Monthly (based on turnover)
Due Date: 28th of the following month after the tax period ends
Format: VAT201 Form (Online)
Late Payment Penalty: 2% of unpaid tax + escalating fines
8. Input Tax Credit
Registered businesses can claim input VAT on purchases used for taxable supplies. Conditions:
Must have valid tax invoice
Goods/services must be used for taxable business activity
VAT must be correctly charged
9. VAT Invoice Requirements
A valid VAT invoice must include:
Supplier & buyer details
TRN (Tax Registration Number)
Invoice date
Description of goods/services
VAT rate & amount
Total including VAT
10. Penalties & Fines (Common)
| Violation | Penalty (AED) |
|---|---|
| Failure to register for VAT | 10,000 |
| Late filing of VAT return | 1,000 first time, 2,000 repeat |
| Late VAT payment | 2% of unpaid + daily interest |
| Failure to issue proper VAT invoice | 5,000 per invoice |
| Incorrect records or failure to keep records | 10,000 – 50,000 |
11. VAT Deregistration
Required if turnover falls below AED 187,500
Must apply within 20 business days from the trigger date
Failure results in penalty of AED 10,000
Summary for Businesses
| Category | VAT Implication |
|---|---|
| Mainland Business | Must register and charge VAT |
| Freezone Business | Must register unless exempt; Designated Zones have special rules |
| Export Services | 0% VAT |
| Local Sales | 5% VAT |
| Exempt Services | No VAT, no credit |
The Department for Promotion of Industry and Internal Trade (DPIIT)
The Department for Promotion of Industry and Internal Trade (DPIIT) is a government body in India responsible for promoting industrial development, entrepreneurship, and innovation in the country. One of the key initiatives of DPIIT is the Startup India program, which aims to support and nurture startups in India through various schemes and incentives.
DPIIT recognition for startups is a crucial aspect of this program, as it provides eligible startups with benefits such as tax exemptions, funding opportunities, and fast-track patent examination. In this article, we will explore the DPIIT registration process, eligibility criteria, benefits, and how it can help startups to grow and succeed in India’s dynamic and competitive startup ecosystem.
What is DPIIT Full Form?
In order to understand what DPIIT is, you first need to know what DPIIT stands for? DPIIT full form stands for the Department for Promotion of Industry and Internal Trade. It falls under the Union Ministry of Corporate Affairs and is responsible for formulating policies for the promotion of industrial development, foreign direct investment, and internal trade in India.
DPIIT comes under the Ministry of Commerce and Industry. This government body was formed in January 2019 after the merger of the Department of Industrial Policy and Promotion (DIPP) and the Department of Commerce.
What is the purpose of DPIIT?
The primary purpose of DPIIT is to create a conducive environment for the growth and development of industries and businesses in India. The department is responsible for formulating and implementing policies that facilitate investment, innovation, and entrepreneurship. DPIIT works closely with various stakeholders such as businesses, industry associations, state governments, and other central government departments to achieve its objectives.
One of how DPIIT promotes the growth of businesses is by providing recognition to eligible entities under various schemes. DPIIT recognition is a coveted status that offers several benefits to businesses. To be eligible for DPIIT registration/recognition, a business must meet specific criteria and follow a set of procedures.
How to get DPIIT Recognition?
DPIIT registration or recognition for startups is a program initiated by the Department for Promotion of Industry and Internal Trade to provide recognition, benefits, and incentives to eligible startups, to promote their growth, development, and expansion in India. To receive DPIIT registration/recognition for startups, eligible businesses must submit an online application that includes details about their business, team, product or service, and funding.
The application is further evaluated by a panel of experts, and successful applicants receive a certificate of recognition and access to various benefits and incentives. We have elaborated on each step of the process in the further segment of the blog.
Determine the Eligibility Criteria
Eligibility is the one of the most vital factors while filing for any sort of government application. This is the reason, before applying for DPIIT recognition, a business must determine its eligibility. DPIIT offers recognition under various schemes such as the Startup India Scheme, Industrial Entrepreneurship Memorandum (IEM), and the National Industrial Classification (NIC) code. Each scheme has specific eligibility criteria, and businesses must meet them to be considered for recognition.
For instance, to be eligible for recognition under the Startup India Scheme, a business must be incorporated as a private limited company, partnership firm, or limited liability partnership (LLP). It must be less than ten years old from the date on which it was incorporated and must have an annual turnover of less than INR 100 crores.
Additionally, the business must be working towards developing new and innovative products, processes, or services driven by technology, with the primary objectives of wealth creation and employment generation. An additional condition applicable is that it should be an original structure and not a product of the splitting or reconstruction of an existing business.
Register & Create a profile on the DPIIT Portal
Once a business has determined its eligibility, it must undergo DPIIT registration on its portal. The DPIIT portal is an online platform that enables businesses to apply for recognition under various schemes. To register, a business must provide basic details such as its name, address, and contact information. The contact information would be verified using OTP. With this, your DPIIT registration process will be completed and you will receive your login credentials on your registered e-mail ID.
Using these credentials, you can log in to the portal, and create your complete profile by entering details like the current stage of your startup, the details of directors/partners, the details of the authorised representative, business plan, details of funding, details of intellectual property and the proposed business activities. You must also upload supporting documents such as the Certificate of Incorporation, PAN card, and GST registration.
Apply for Recognition
After registering and creating your complete profile on the DPIIT portal, a business can apply for recognition under the Startup India scheme. The application form will require the business to provide details such as its business model, financial projections, and the problem it intends to solve. The business must also provide information on its team, including the founders, directors, and key management personnel.
Await Approval
Once the application is submitted, DPIIT will review it and communicate its decision of approval or rejection to the business. If the application is approved, the business will be granted recognition under the Startup India scheme. The recognition certificate is valid for a specified period and can be renewed before expiry.
What are the benefits of DPIIT?
DPIIT recognition offers several benefits to eligible startups, including access to various schemes and programs, such as tax exemptions, fast-track patent examination, and funding opportunities. It also provides startups with visibility, credibility, and networking opportunities with industry leaders, investors, and mentors.
Additionally, DPIIT recognition can help startups to overcome bureaucratic hurdles, improve the ease of doing business, and promote a culture of innovation and entrepreneurship in India. We have explained some of the prominent benefits of DPIIT Recognition below.
1. Tax Benefits
Businesses recognized by DPIIT are eligible for various tax benefits. For example, startups recognized under the Startup India Scheme are exempt from paying income tax for the first three years. Additionally, they are eligible for a 100% deduction of profits for five consecutive years out of seven years from the date of incorporation.
2. Faster Access to Funding
DPIIT recognition can help businesses attract funding from investors and financial institutions. Investors are more likely to invest in recognized businesses as they are perceived to have a higher potential for growth and profitability.
3. Brand Recognition
DPIIT recognition can help build a startup’s brand in several ways. Firstly, receiving DPIIT recognition provides instant credibility and validates the startup’s potential for growth and innovation. This recognition can be used in the startup’s branding efforts, such as website, social media, and marketing materials, to showcase its achievements and differentiation. Secondly, DPIIT recognition can provide startups access to various networking opportunities, such as events, conferences, and mentorship programs, which can help them connect with industry leaders, investors, and potential customers.
Get your business registered under DPIIT to reap such benefits eventually helping in its expansion and overall growth.
Conclusion
In conclusion, DPIIT registration or recognition for startups plays a vital role in promoting entrepreneurship and innovation in India by providing startups with the resources and support they need to grow and succeed. By offering benefits such as tax exemptions, funding opportunities, and fast-track patent examination, DPIIT registration/recognition helps eliminate barriers to entry and foster a culture of innovation in India. Hopefully, now you have a better understanding of DPIIT Registration.