India has its arms open for young entrepreneurs. As a developing country, it is embracing all kinds of businesses. If you are an aspiring business person then you might have some questions around the topics of “Company Registration” and “Income Tax Consultants”. This blog briefly explains all this complex stuff in a layman’s language and by the end of it, you will get a gist of the mentioned topics. If you have nothing to do with businesses or companies, then you can jump down to the “Income Tax Returns” section to understand the ITR filing process. So, make sure you read the whole blog.
Let’s get started!
Table of Contents:
- Company Registration Service
- 1.1. Types of Business structure
- 1.2. How to Register a Company
- Income Tax Consultant
- 2.1. Income Tax for your Company
- 2.2. Income Tax Returns
Company Registration Services
One thing you must know is that the registration of companies is completely digital. You must first recognize the company structure you want to have. The types of companies that can be registered are explained below. Once you have that knowledge, read the process of registration of companies and head over to this link to begin the process. We provide the easiest and user-friendly company registration services.
Types of Business Structures
These are the Business Structures or Types of companies that can be registered in India:
- One Person Company
- As of 2013, any non-minor person can register a one-person company and enjoy the same provisions as that of any other known business structure. It basically enjoys limited liability, equal treatment from banks and creditors, and the nomination of a successor. The biggest disadvantage is the tax rate remains 30% on all profits.
- Limited Liability Partnership (LLP)
- As the name suggests it’s a partnership between individuals or corporations that enjoys limited liability. The risk is divided and no one entity is held accountable. Once a formal partnership like this is established, the entities can work together to make more profits.
- Private Limited Company
- This is the most credible form of business structure in India. A lot of startups incorporate this to raise funds. Examples of Private limited companies are retailers and small businesses. PLC’s too share limited liability among their entities.
- Public Limited Company
- In a Public Limited Company, the shares are traded publicly on a stock exchange. Examples are large multinational corporations.
- Proprietorship firm
- A Proprietorship firm is a small-scale business that is run by a sole entity. It doesn’t have advanced legal provisions like the other business structures. A new entrepreneur can register a Proprietorship easily.
How to Register a Company
Now that you know the types, it is time to register the company. Let’s take the example of the most credible type of business structure. These are the steps for registration of a private limited company.
- Digital Signature
- The digital signature of all the representatives or directors is required to start the process. It is a mandatory step to fill the forms on the MCA (Ministry of Corporate affairs) portal.
- Director identification number (DIN)
- It is a single identification number that is given to the director of the company. Details like name and address are taken from the registration form.
- Name Approval
- All companies ever registered in the country are shown in the MCA portal. The name of the company should be unique, so MCA can approve it without any restrictions.
- Once everything is submitted, the responsible people at MCA will verify the documents and give a certificate of incorporation.
- This basically means that the company can start its business officially.
With this, we have covered the basics of the registration of companies. Now let us move onto the Income Tax space of things. We will discuss income tax in general and how it applies to companies and individuals.
Income Tax Consultancy
Taxes are like an invisible tail. No matter what you do and where you go, it will follow you. Whether you have a business or you work for a business, income tax applies to all. That is why it is important to have clear income tax planning. This is something we at MyTaxAdvisor do best. You will get professionals who have high expertise helping you with all things taxes. Let us first go through some basic things that you should know about income tax as a business owner.
Income Tax for your Company
If you are a business owner then the term “Income Tax Consultancy” may not be alien to you. A lot of paperwork goes into handling the finance part of any company. Therefore, it is mandatory to hire professionals for that part. They will do proper tax planning and will help the company minimize their taxes where ever possible.
All the types of companies have a fixed tax rate that they have to pay every financial year. It is called the Corporate Tax (CIT). The CIT is calculated based on the company’s annual turnover and various other factors. Moreover, companies have to go through something called a “Tax audit”. It means, that the companies have to get their accounts audited and submit an audit report.
All of this requires Income Tax Consultancy. A business person has to keep this in mind and plan his/her resources accordingly.
Income Tax Returns
Income Tax Returns (ITR) can be filed by any company or salaried employee. ITR is a system where you give the information about your income and the government validates it to see if you have paid anything extra as taxes. If so, then you get the money returned. There are various checks in place to see if you are eligible to file an ITR. Also, there are various types of ITR that you can file. It ranges from ITR-1 to ITR-7. You have to figure out which ITR is applicable for you for the given financial year. Too much information right? Do not worry, even individuals can hire an Income Tax Consultant. Head over to this link for reducing your tax liability.