Aspiring to start a company of your own is indeed quite ambitious. But getting stuck into a web of legalities can be daunting at times. At such times, having a reassuring support can be an immense relief.
My Tax Advisor is a one-stop solution to all your financial and legal dilemmas. Based in Mumbai, My Tax advisor aims to offer you intriguing, out-of-the-box ways to help you start your new company.
In this article, we’ll dive into exploring legal and financial know-hows that are necessary to start a company in India.
STEPS TO BEGIN A NEW COMPANY:
Starting a company isn’t an overnight process, it takes a lot of paperwork and careful planning to affirm a strong foundation of a company. Here are 5 steps that will help you ease your process of registering your company in India.
- Choose your company name:
Although it might sound naïve, but having a good company name is the most essential step in starting a company. The customers will remember the name of your company before anything else, take an example of Uber, Amazon or Jio. Having an arguably long name won’t be ideal. It’s imperative to choose a company name that is easier to remember, pronounce and promote to your customers.
There are certain clauses that need to be followed while selecting a company name. Few of them are as follows:
- The name should reflect the vision and mission of your business.
- It should be distinctive enough to catch the attention of your customers.
- Generic names like the name of any state or an area cannot be used as a company name.
My TaxAdvisor offers you legal help in selecting an appropriate name for your company that tackles all the legal discrepancies.
- Register your company’s DLC:
DSC (Digital Signature Certificate) play instrumental role in starting your company, especially in the era of digital advancements.
Indian IT Act 2000 has made provisions to enhance the security and originality of your company by allowing you to in register the company’s official signatures in digital form.
- Acquire your DIN:
DIN (Director Identification Number) is a unique number allotted by the MCA (Ministry of Corporate Affairs), India to a new or an existing director of the company.
With this 8-digit number having a lifetime validity, the details of the director are saved in a centralised database. You can log on to MCA portal and apply to acquire your DIN.
- Creating an Account on MCA:
Once you have acquired you DIN, you can create your account on MCA (Ministry of Corporate Affairs) by registering on mca.gov.in.
Click on the new registration option and once all the requirements are met, you’re all set in taking your first step in starting a new company.
- Register for GST number :
If your annual turn-over exceeds 40 lakhs, you are applicable to enrol for Goods and Services Tax (GST) registration.
You can register for GST for free using MyTaxAdvisor. Right from registering your company to acquiring your GST number, we’ve got you covered!
TYPES OF COMPANIES IN INDIA
Depending on your business goals and future prospects, you can choose your type of company to start. There are 5 major types of companies you can start in India:
- Sole proprietorship:
Sole proprietorship is one of the easiest ways to start your company. All you have to do is provide mandatory identification documents and you’re good to go. However, it is advisable to consult a Chartered Accountant for a registration certificate.
- One-person company:
In the earlier days before 2013, a company was compelled to have at least two directors. However, since the inception of One Person Company, an individual is allowed to take a 100% charge of a company.
The major difference between a sole proprietorship and one person company is that the latter is able to incorporate the entire company and avail additional tax benefits.
- Partnership company:
A partnership company, as the name suggests, is formed when your venture is shared with partners. An agreement of association which is termed as Partnership Deed has to be signed by the partners. This agreement contains the details about sharing of profits and roles of partners in a business.
- Limited liability company:
A Limited Liability Company or LLC is one of the most flexible business structures. Companies like Nike, IBM, and Google are prime examples of LLC companies. There are multiple owners to this business structure. The owners can be an individual, corporations, foreign entities or other LLCs. LLC constitute less paperwork as compared to other business structures.
- Private limited company:
A private limited company or LTD has minimum 2 to maximum of 200 members. As the name suggests, a private limited company cannot obtain funds from public, hence publically issuing shares is not allowed for a LTD company.
The percentage of taxation in LTD is comparatively a bit lesser than other business structures.
We, at MyTaxAdvisor will provide you financial and legal assistance to help you register your new company by guiding you in all the steps in a much easier and flexible manner.
TIPS TO REMEMBER WHILE STARTING A COMPANY
Although the steps for starting a company might seem conveniently easier, following a few tips will help you smoothen the process of starting a new company. Here are a few tips recommended by us to help you start a company much comprehensively.
- Make sure you select the right type of business according to your planned framework for investment and visions
- Ensure that you consult a chartered accountant to understand the fundamentals and benefits of taxation for different business structures.
- Consult legal advice and get all your legal clearances documented and approved from authorities. At times, a business fails to register or validate a certain document, which might create hurdles in the future during audits.
- A thorough knowledge of tax implications, liabilities and risk management is essential before venturing into your business.
THE BEST PLACE TO START A NEW COMPANY IN INDIA | MY TAX ADVISOR
Now that we’re well versed in understanding the essentials of starting a new company in India, a company that pays special attention to all your requirements would be impeccable, wouldn’t it?
Our team at MyTaxAdvisor, with a combined experience of more than 10+ years prominently helps you avail your financial and legal solutions in a comprehensive manner. Equipped with a bunch of dynamic, zealous and experienced individuals, MyTaxAdvisor is your go-to place to understand tax benefits and other complex services in a much simpler way.
Right from free registration for GST to an expert counsel on starting a new company, we, at MyTaxAdvisor have got your back! We provide an extensive range of packages curated to suit your business requirements and facilitate an overall seamless experience.
Connect with us at info@mytaxadvisor.co.in and discover a wide range of services to help you start your dream company!
Have you ever faced taxation issues or are confused about what taxes are and how they are paid? In that case, this article will provide you with the answer to your questions by introducing you to the right person- A tax consultant!
A tax consultant is a person who gives advice on tax-related problems and helps people pay their taxes. Basically, a tax consultant plays an extensive role in the accounts industry. He knows taxation laws, has full-fledged knowledge of the tax percentage for every sector, statutory compliance, and is a financial problem solver.
Now let’s get deeper into this!
What are the educational qualifications of a tax consultant?
Tax consultants generally have well-equipped knowledge of the law, some also take up consultation courses in this field, some tax consultants also complete the personality development course. For being a tax consultant, there is literally no need to be qualified from a specific educational background. A person with a good sense of accounting and tax laws is surely eligible to become a tax consultant.
What are the services offered by tax consultants?
- Tax advisory services– Tax consultants provide logical financial advice to their clients. They tell them the strategies to lessen their financial burdens and tricks to computing the taxes. Hence he/she should have strong knowledge about countries’ taxation laws and regulations.
- Strategic planning and finance management- The consultant is accountable for the strategic planning and financial management of the business. So he always plans and executes tax reduction strategies legally. He also coordinates with different departments of the organization to know the background and plan accordingly.
- They act as auditors and accountants: They maintain balance sheets and tax return files so as to keep a record of the client’s finances. They give guidance with regards to managing assets, properties, etc.
A tax consultant can work for an agency or can be self-employed. In both cases, he does the same work of finding out clear and legal ways to bring down tax percentages. If a taxpayer has faced some severe life issue, such as the death of a family member or spouse, divorce, etc would be prudent to seek a tax consultant’s advice. The advice of a tax consultant varies depending upon the situation. For example, a retired person would get different advice and an entrepreneur who is planning to set up a new shop would get different advice. This is how the work and skill compliance of a tax consultant varies from person to person.
Income tax consultants are wise strategic and have a hang of all the know-how of taxations. Tax consultation proves to be extremely important as it might reduce a lot of your expenses spent on tax, that you would otherwise use in a time of emergency.
For business owners or agencies, consultants do financial wonders and help businesses gain profits.
If you are in search of tax consultants to align your finances, then there are a lot of tax consultants in Mumbai. My tax advisor is a great consultation service to go for! They provide brilliant advice and services to improvise your financial cycle!
Reduce taxation charges with the best legal strategies and prosper financially!