The Liberalized Remittance Scheme (LRS) is part of the Foreign Exchange Management Act (FEMA) 1999, laying down the guidelines for outward remittance from India. Under LRS, all resident individuals, including minors, are allowed to freely remit up to USD250,000 per financial year (April – March).
How CA on Web Pvt. Ltd. can assist
We CA on Web Pvt. Ltd. are a Chartered Accountant consulting firm providing all kinds of consultancy and compliance services related to the Liberalized Remittance Scheme. Our expert advisors assist clients with all compliances with the Liberalized Remittance Scheme
The services that we offer in relation to Liberalized Remittance Scheme include the following:
FEMA Compliances related to the Liberalized Remittance Scheme.
Applying to RBI in relation to approval for the Liberalized Remittance Scheme, if required.
Submission of documents to AD for release of remittance.
Drafting of documents for approval from RBI
Advising various routes for the acquisition of immovable property in or outside India,
Liasoning with AD Bank and RBI in relation to Limited Remittance Scheme
Are you considering to start a business, but you’re unsure about your funding situation and whether you’ll be able to cover all of the startup costs by yourself or not? You could be unsure of whether to choose a private limited company or an one person company registration. This blog will clear your choices.
Table of Difference Between private limited company & OPC registration:
Basis of Difference
One Person Company (OPC)
Private Limited Company (Pvt Ltd)
Meaning
A One Person Company combines the sole proprietorship and company business structures. The idea opened up opulent possibilities for sole proprietors and other independent business owners who can benefit from Limited liability and corporatization.
A Private Limited Corporation is a separate legal entity from its Directors or Shareholders. A pvt ltd company must have at least two shareholders in order to be incorporated.
Number of Owner/ Members
It has only 1 owner.
It has a minimum of 2 owners or members and a maximum of 200.
Share Capital
Share capital and Share of profit are held 100% right by one person.
Rights of share capital and profits are distributed among all owners/members as per the article of association. (AOA)
Transfer of Share
Not Applicable
As per the terms and conditions decided in the article of association many types of limitations are imposed by the AOA.
Share Prospectus
Not Applicable
No need to issue Prospectus.
Number of Directors
It must have at least 1 Directors and it can have a maximum of 15 Numbers of Directors.
It must have at least 2 Directors and it can have a maximum of 15 Numbers of Directors.
Name of Company
The word ‘OPC’ is used as part of the name of the company.
The word ‘Private Limited’ is used as part of the name of the company.
Funds Raising
It has on one owner so it is not possible to raise funds by issue of shares of the company.
With the agreement of all the company’s shareholders, shares of the company may be issued in order to raise money.
Points of Differences Between Private Limited and one person company registration
1. Ownership and Regulation:
The employees’ ownership of a company is indicated by their shareholdings. In the case of one person company registration, ownership is held by a single member and is not shared with any other party. A member who owns 100% of the business is independent and has the flexibility to do whatever they want, as long as they abide by all applicable rules and regulations. He can simultaneously become a shareholder and a director and seize total authority, which is not feasible in the case of a private company. The Private Corporation always has at least two members with equal ownership. As a result, decision-making freedom is constrained and dependent. The directors chosen by the shareholders make all managerial decisions. The percentage of shares that each member owns determines their voting power.
2. Activities in OPC & Pvt. Ltd. Company:
The one-person company registration is not allowed for a specific set of authorized business activities. No OPC as an organization may engage in activities like non-banking financial activities, investing in securities, etc. Private Companies are permitted to engage in these types of operations with the prior consent of the relevant rules.
3. Taxability:
Since the OPC idea is not recognized by the IT Act, such businesses will be treated similarly to other businesses for taxes purposes. Private businesses are subject to a 30% tax rate on their whole income, minus cess and surcharges. Small businesses, however, are subject to the 25% tax rate on all income.
4. Company’s establishment & registration
One Person Companies and Private Companies both have the same costs associated with their formation, however, the costs associated with compliance are somewhat different. In OPC, the cost of compliance is lower than in private companies as it has a long procedure for registration. Each form must be filed, which costs INR 500, reflecting the greater OPC compliance cost. Compared to an OPC, a private limited company has higher compliance costs because of more documentation and paperwork.
5. Audit & Yearly Compliance:
Any business registered under the 2013 Indian Companies Act must undergo an audit. The Yearly Compliance portion is the same. Within 30 days of registration, both OPC and Private Companies must select a statutory auditor. Forms must be filed annually with the Ministry of Corporate Affairs as part of the Annual Compliance. Both must also submit income tax returns for each fiscal year.
6. Investment By The NRI Or Foreign National
Foreign nationals and NRIs can easily establish a private limited business in India, which is one of its biggest benefits. Private Limited Companies can take FDI via the automatic approval procedure. However, under the OPC, only Indian citizens are permitted to form a firm. One-person businesses can no longer accept and receive foreign direct investment.
In comparison to a Private Limited Corporation, OPC is exempt from several regulations, including those for AGMs and Board Meetings. The meetings do not need to be held like those of a private firm because there is only one member and one director. Whereas the Private Company itself benefits from a number of exemptions, OPC is given greater privileges.
8. Conversion of OPC:
In the case of a one-person company registration, there is a restriction on corporate expansion.
OPC must become a private or public company if its paid-up capital surpasses INR 50 Lakh or its annual average revenue exceeds INR 2 Crore. As a result, this is the upper maximum allowed for operation under the OPC. There are no restrictions or limitations in the case of a private company. Also, a minimum of two years must have passed since the one-person company’s registration if the promoter wants to voluntarily convert the OPC into another company.
Reasons why choose private limited company registration Over OPC Company
We will focus on why private limited company registration is a better choice than OPC.
Separate legal entity: A private limited company is a separate legal entity from its shareholders. This means the company can own assets, sue and be sued in its name, and enter into contracts. In contrast, an OPC has no separate legal entity, and the sole proprietor is responsible for all the obligations and debts of the business.
Liability protection: As a shareholder in a private limited company registration, your liability is limited to the amount you have invested in the company. So, if the company faces financial difficulties, your personal assets are protected. This is not the case with an opc registration, where the owner’s personal assets could be at risk.
Greater funding opportunities: Private limited companies are more attractive to investors and banks, as they have a better capacity to raise capital than opc registration. This allows companies to grow faster and expand their operations.
Perpetual succession: In a private limited company, the death or departure of a shareholder does not affect the existence or ownership of the company. However, in an OPC, the proprietorship ends with the death or insolvency of the sole member.
Better credibility and recognition: Private limited companies are more credible and have better recognition compared to OPCs. This makes it easier for companies to do business with vendors, customers, and other stakeholders.
The OPC registration fees in India vary depending on the services provided by the Chartered Accountant (CA) firm. Typically, the fees charged by CA firms for OPC registration range from Rs. 7,000 to Rs. 15,000, which includes government fees as well. However, the OPC registration fees may change depending on the following factors Legal structure, Professional fees, Turnaround time, and Additional services such as document drafting, name search, etc. can also increase the overall cost.
Private limited company registration fees
Overall, the total private limited company registration fees can range from Rs. 15,000 to Rs. 1 lakh or more, depending on the aforementioned factors. It is recommended to consult with a CA firm for an accurate estimate, as they can provide tailored services according to the specific requirements of the business like government fees, professional fees etc. The CA firm may also charge for additional services like obtaining Digital Signature Certificates (DSC), Director Identification Numbers (DIN), and other necessary licenses or permits, as required by the company. With the assistance of Mr Sanket Agarwal you can easily able to choose between both types of registration, they have helped 1000 plus companies worldwide like India, Dubai, Hong Kong etc. Caonweb are offering the best online ca services.
Frequently Asked Question
Q.) Is OPC like a private company?
If an OPC’s average annual revenue over the 3 most recent financial years exceeded 2 crore rupees or its paid-up share capital exceeded 50 rupees. Then OPC is required to transform into a private or public company.
Q.) Can an OPC corporation employ people?
They are permitted to hire as many people as necessary. There can only be one stakeholder at a time. There may be multiple directors and staff in an OPC.
Q.) What is a Pvt Ltd company’s required minimum annual turnover?
Unlike to a one-person firm, a private limited company structure has no restrictions on capital and turnover.
Q.) Which business cannot be transformed into an OPC?
The formation or transfer of One Person or Company is restricted by Section 8 of the Act. OPC cannot acquire securities from other Body Corporates or indulge in other non-banking financial investment activities.
Online ca services, where to find the best? The top chartered accountants in india are important to a nation’s economic development. Due to their expertise and understanding in areas like FOREX, stock market and company law, and financial taxation, auditors are a good choice. Due to this, it’s essential to choose a CA service online. It even aids in the comprehension of laws and rules by commoners or rural residents. The term “auditor” also applies to chartered accountants.
An online ca services: what it is?
A professional who offers financial and tax services to firms is a chartered accountant (CA). On the other hand, an online CA service offers chartered accountant services remotely via the internet.
This service can be advantageous for organizations since it can save expenses related to traditional accounting procedures, such as office space rental and full-time employee hire.
Online CA services can also offer additional flexibility in terms of service delivery and scheduling. For instance, rather than tying firms to an annual contract, several online CA services provide monthly or quarterly packages that can be used as needed.
All the best chartered accountant in India are available online; no need to visit your CA
Accounting and tax services have transitioned to the digital age alongside businesses. A tax advisor’s services are available to you. In contrast to the past, when you had to visit your neighborhood accounting company for anything, you can now work from a distance. Digital ca services eliminate the need for ongoing appointment inconveniences and out-of-pocket expenses. The vast majority of services, including company registration, tax reporting, and so on, are available. Audits can be performed without consulting a chartered accountant or a certified public accountant. Only in certain circumstances should a tax counselor be physically present.
Get it Done Effortlessly and Fast with a list of chartered accountants in India
You may take care of your business demands swiftly and conveniently by using an online CA service in Delhi. When filing taxes or handling other paperwork, you can save time and money by having a qualified CA on your side. Additionally, you don’t need to worry about flying somewhere because the majority of services are accessible online and from any location with an internet connection. You can sign, file, and send all of your paperwork to the authorities with a few quick button clicks. It is simple and quick.
You can save money both now and in the future by using an online CA service in Delhi. You frequently have to compensate local chartered accountants for their time when you work with them. However, you can simply receive professional assistance without paying any additional fees if you use an online CA service. You also won’t have to worry about being overcharged for extra services you don’t require because these services are frequently customized to meet your unique demands. Online CA services also occasionally provide discounts and other promotional deals, allowing you to receive even more value for your money.
Who Requires a Web-Based CA Service?
A certified accountant’s services are required if you are beginning a business or working for yourself and need assistance with your taxes and financial planning. You can get the same level of service from an online CA service as from a conventional brick-and-mortar business, but for a lot less money.
Additionally, an online CA service is more practical and accessible from any location in the world. To get help from a nearby accounting business, you don’t need to take time off work, deal with public transportation, or locate space. Just take online services by top chartered accountants in India like Mr.Sanket Agrawal, he has helped various companies all around the world to get registration and license done like FSSAI registration, GST Registration, and Company registration. From Income tax to its return, you can get all services.
Online ca services : 3 Steps to Register
Step 1: Choose a service from our vast list https://blog.caonweb.com/, then fill out the form.
Step 2: Complete the form with your personal and business data before paying over a secure payment channel with credit or debit cards, net banking, UPI, or a digital wallet.
Step 3: Our staff member immediately sent us an email, and we soon after received the required documents as scanned copies or images. Rest easy! Your assignment has been finished.
What CA Services does Caonweb offer?
Caonweb offers a number of CA Services, including:
Business registration.
An FSSAI food license.
Registration of NGOs.
Filing tax forms.
Audits, such as internal audits, bank audits, and tax audits.
NGO-related work, including 12A and 80G certifications and other credentials.
Tax consulting for individuals and businesses.
Several licenses are required, including FSSAI, Trade, ISO, and Drug Licence.
TDS, GST, accounting, PF & ESIC, and numerous other services.
Online chartered accountants’ Assistance to Small Businesses
Let’s see how an online chartered accountant can support a small business owner :
Tax Advisory Service:
CAs are specialists in tax legislation and can assist you in planning your tax assessment in advance and adjusting the balance sheet of your business. the greatest information on value-added taxes and service taxes. When you consider the advantages it delivers, paying taxes on occasion is important, and saving on them is much more so. Additionally, businesses frequently overpay their taxes, so financial specialists may assist you in reducing tax expenditures where necessary.
Project Financing Service:
When it comes to managing the money that is spent on new projects or installments, financial professionals are your best bet. They can assist you in creating the finest budget with savings on the capital required for the project’s inception.
Auditing Services:
The auditing services provided by CPAs include the appraisal of the business or product and the creation of an exhibit.
Know technology:
Those that gain a thorough understanding of how it can help, how it functions, and what changes are coming up will have a significant advantage over other CAs since they can promote efficiency and suggest a wise course of action.
Bookkeeping & Accounting :
Maintaining accurate financial records is a crucial component of every organization and has a direct impact on the company’s financial situation. With the assistance of a certified accountant, bookkeeping is one of the most fundamental and straightforward accounting procedures that you may implement.
Generate Reports:
It is important to never underestimate the usefulness of financial reports, which can be used to analyze your company’s accounts & finances on a monthly, quarterly, or yearly.
Services in CA Near Me are in High Demand: How?
We employ tried and true specialists in India with more than ten years of expertise in business and tax consulting, including chartered accountants, club secretaries, and tax advisors who ensure the quickest and best execution of all online ca services that are allocated to them. We have a decade of experience supporting clients by making things easy, unlike traditional Indian CA companies. As the technology revolution advances, our client’s needs are constantly changing, so we work hard to be on the cutting edge of satisfying those needs.
To meet the needs of every taxpayer, we are introducing an online service platform where customers can find local online CA services or a directory of the best-chartered accountants in India from which they may select a specialist. Caonweb is always developing its skills by altering the way we work and offering clients digital services. We collaborate with our clients to create long-term partnerships that will support their growth and operations.
Why choose Caonweb best chartered accountant in India for startup growth?
By offering high-quality, reasonably priced services online, we assist entrepreneurs and small business owners in starting and expanding their businesses.
One of India’s largest financial services marketplaces for SMEs and startups is being built by Caonweb. From company registration to fundraising, debt financing to investor relations management, and managing government compliances, we are aware of the financial requirements of startups. We have a panel of Chartered Accountants (CAs) from all over India to assist SMEs and Startups in starting, managing, and expanding their firm. We offer you all of the services needed to launch an SME, including loan syndication, insurance, GST registration, returns, trademark registration, ISO certification, FSSAI licensing, Startup India registration etc.
Frequently Asked Question
Q- How Do We Choose the Top Online CA?
The greatest online CFO/CA services are available at https://www.caonweb.com/ca-services. Caonweb consulting has extensive expertise working with online CFO/CA service providers. There are many skilled individuals working with Caonweb Advisory, and hundreds plus of happy customers.
Q- Why should I hire a qualified online CA?
Professional chartered accountants are very knowledgeable about finances, have a wealth of expertise, and know which financial advice to offer to businesses. Hiring a qualified Chartered Accountant in Delhi was made necessary because the advice they provide is essential to the development of the business.
Q- What are the benefits of using an Online CA?
Small and medium-sized businesses can benefit greatly from Online CA services.Chartered accountant near me With this arrangement, they will receive a qualified specialist at a fair price. He is available for all the services you need. The key benefit is that the arrangement is made through a highly structured, professional company. Consequently, the service is unaffected by the change in the people.
With the help of small business accounting and bookkeeping services, you can keep track of all your financial transactions and ensure total transparency in your business operations. All owners and managers need to be aware of the financial situation of the entity before making any strategic decisions. At this point, accounting and bookkeeping are involved. Even while you may handle Accounting and Bookkeeping internally, it is always advisable to get professional assistance. Choose today from the most appropriate plan with Caonweb.
What is small business accounting & bookkeeping?
A component of bookkeeping is keeping track of a company’s ongoing financial transactions. Accounting is the process of creating financial accounts. All types of enterprises, even small businesses, and freelancers must use accounting. In addition to being required, it is always preferable to maintain precise and current financial statements to prevent financial snags. Account maintenance is crucial for both an industrialist and a home-based firm. A business must adhere to certain accounting regulations. Expert assistance is required in order to meet these requirements.
What is small business accounting?
The systematic process of small business accounting is used to collect, examine, and communicate information about a company’s financial transactions. Accounting enables the determination of a company’s financial position and the dissemination of that information to stakeholders. It assists a company in making decisions both now and in the future, and it also portrays a company’s legitimacy to the market. Investors, creditors, workers, and the government are some examples of accounting users who need a thorough comprehension of financial statements.
What is small business bookkeeping?
The systematic recording and categorization of a company’s financial transactions are done through bookkeeping. Bookkeeping is said to be the cornerstone of accounting, even though accounting is thought to be a part of the greater area of finance. The main objective of bookkeeping is to maintain an accurate record of all financial transactions for a business. Businesses use this information to guide key investment decisions. The bookkeeper maintains records and books. Accurate bookkeeping is essential for companies since it gives precise statistics on a company’s success.
Who must take Bookkeeping accounting services?
This bookkeeping solution may come in handy if your company has a growing staff and revenue. Every corporate entity is required to keep accurate books and accounts. Companies that are the subject of an internal or statutory audit must also do it.
This system is made to meet the accounting requirements of companies and those in the following positions:
Retailers of goods
Consultants & Professionals
Investors in the stock market
Individuals in independent business
Why are accounting and bookkeeping services integral for companies?
Bookkeeping and accounting are crucial for the effective management of any firm. Additionally, bookkeeping focuses on maintaining records of all the firm financial activities. Accounting oversees and keeps track of the business’s financial activities. Having said that, managing the bookkeeping and accounting for any executive is not that simple. Errors and mistakes are common during these actions. Only a specialist expert can effectively manage bookkeeping and accounting tasks.
It’s important to record financial transactions in the right areas in the books when doing bookkeeping. Accounting must monitor financial details and produce accurate financial reports regarding the company. You can also contract with any bookkeeping outsourcing business to complete your bookkeeping responsibilities. It may provide superior bookkeeping services. You can potentially outsource the accounting task to one of the many accounting outsourcing companies. An organization that prioritizes bookkeeping and accounting tasks can increase business productivity.
Documents Needed to Incorporate Bookkeeping accounting into business
Services Company or Business establishment Documents.
A year’s worth of bank statements or monthly statements (with remarks).
Bills for purchases and sales, if any.
invoices for expenses, if any.
Information about what is due and owing.
Any additional registration with the government.
Cash Outlays.
Bank Statements of partners or members, along with comments if used in business transactions.
Promoter costs incurred for a company or LLP registration.
What activities are included in small business accounting & bookkeeping?
Bookkeeping will retain the following main activities for organizations:
Recording of financial transactions.
Creating accurate invoices.
Properly preparing financial statements.
Accurately posting credits and debits.
Executing payroll transactions.
In addition to the aforementioned operations, bookkeeping also includes various other tasks.
Accounting will retain the following main activities for an organization:
Producing accurate financial reports to provide company insights.
Correctly adjusting the entries.
Handling tax return processing.
Preparing all of the company’s critical financial statements.
Making and receiving the required payments in a timely manner.
In addition to the above activities, accounting also covers a few more things.
4 reasons for outsourced bookkeeping services
Long hours and accuracy are required for the job of business bookkeeping; hiring a small business accountant internally adds to the expense. By outsourcing corporate bookkeeping services, you can access “virtual” accountants that are eager to put in the time quickly and with higher-than-average quality.
Providers of bookkeeping services are aware of particulars like small business taxes and lean versus busy tax seasons. Resources won’t be an issue for you during this time because we have qualified accountants available on call at all times.
Instead of worrying about money, you would want to focus on expanding your consumer base. Your company’s financial arm is handled by an outsourced professional without the hassles that come with it.
Do bookkeeping and accounting Differ from One Another?
Between bookkeeping and accounting, there is a fine line.
Every day, a bookkeeper uses software to help them record the business’s transactions. Bookkeepers classify and summarize all financial information. On the other hand, accountants interpret and evaluate every financial transaction. The categories, examine and report on the data, as well as the financial condition of the company. Although they are not the same, they work together and are equally vital for every organization. While accounting refers to analyzing, interpreting, reporting, and summarising financial data, bookkeeping refers to the act of recording financial transactions.
Your firm will run more easily if you use a bookkeeper to help you record financial transactions, compliances, and lodgements. In order to minimize errors and omissions, an accountant will simultaneously analyze the data generated by your bookkeeper.
Benefits of having small business accounting & bookkeeping services
To determine the business’s revenue and expenses
Everyone must be aware of the income earned and expenses incurred in order to maintain efficiency and transparency. This enables them to plan and strategically use their financial resources.
Having quick access to operational data
Management has access to operational data at any moment thanks to current records. Since business owners and managers aren’t involved in every transaction immediately, accounting and bookkeeping will occasionally help them keep track of everything.
Consistent reconciliation justifies choices
Data reconciliation on a monthly or quarterly basis enables management to assess a company’s positive and negative characteristics. Periodic data reconciliation is an additional benefit of accounting services. Therefore, after examining the profit and loss, decisions for the future can be justified.
Accurate financial statements will help you draw potential investors
The decision to invest in any company is made only after a thorough examination of its financial situation. You must ensure that your books of accounts are correct and up to date before seeking investors. Financial statement inconsistency may deter investors from investing in your company.
When to consider taking Bookkeeping and Accounting Services
According to our expertise working with numerous firms, outsourcing bookkeeping and accounting often works best when:
Small businesses don’t need a full-time accountant or bookkeeper; they need someone with more skills than the office manager or secretary can provide.
Any sized business cannot afford to hire a skilled full-time professional like an accountant & bookkeeper.
A developing business is constantly looking for ways to scale its bookkeeping and accounting operations.
Temporary services are required, for example, if extra assistance is needed with end-of-year reports, a full-time employee is taking a vacation or maternity leave, etc.
The Changing Environments of Accounting and Bookkeeping
Since they have both been around for a very long time, bookkeeping and accounting have experienced significant changes in the way business is conducted. Future trends will follow this one in a similar way. Future developments in the accounting and bookkeeping industries include:
Integration of bookkeeping and accounting tasks: The difference between bookkeeping and accounting is gradually fading. It’s interesting to see how various accounting functions are gradually being incorporated into the bookkeeping process with the development of accounting and bookkeeping software. In addition, bookkeeping software may now produce financial statements, which were formerly a component of the accounting process.
Bookkeeping will Gradually become Outdated: While most firms will still require a bookkeeper to maintain the books, bookkeeping will expand far beyond data entry, bank ledger balance, and bank statement reconciliation. As most jobs are done by accounting software, these functions will gradually decline over the future years and may even become obsolete.
Expanding the Services: Newer technologies have compelled accountants and bookkeepers to be open to technological developments and investigate new software solutions. With the aid of the most recent software, bookkeepers have the chance to assist their clients through this transformation by offering value-added services like payroll processing and credit card reconciliation.
Introduction of smartphones: Businesses are moving more and more of their activities online, particularly as smartphones and mobile devices become more user-friendly and widely accessible. Business owners desire data access from many locations and devices, and accounting and bookkeeping professionals ensure that properly created reports are always accessible online for their clients.
Conclusion
With more than 50+ clients from India, Hong Kong & Dubai, Caonweb is a reputable provider of professional bookkeeping services along with accounting to small and medium-sized enterprises by CA Mr. Sanket Agrawal. You can go over our Best Accounting Services and submit a quote request.
Frequently Asked Question
Q – How does accounting software work?
A computer application known as accounting software helps in the recording and reporting of financial transactions for an entity. It functions using a variety of modules, including the general ledger, accounts payable, and receivables, among others. It facilitates the analysis of financial data and makes calculations simple to do and comprehend. Tally, Busy, and other programs are examples of accounting software.
Q – How much do small business accounting & bookkeeping services cost?
The size of the company, the industry, the volume of transactions, the availability of financial services, and the complexity of the operation all affect bookkeeper rates. Our experts will walk you step-by-step through the payment process.
Q – How long does the Bookkeeping accounting period last?
While the external accounting or bookkeeping period is for twelve months, from April 1 to March 31 each year, it is typically thought of as a month or a quarter.
Q – Which automated accounting option is ideal for small businesses and freelancers?
Your personal needs, which are based on a variety of variables including the number of employees and your business activities, will determine the answer. There are numerous choices for automated accounting software. Zoho Books and Quickbooks Online are the finest options for small businesses. Additionally, it’s important for freelancers to monitor their earnings. Working for yourself can be enjoyable, but keeping track of your finances can be challenging.
A private limited company has perpetual existence and is a separate legal entity. The business must comply with a specific set of compliances by submitting the necessary forms to maintain its active status. Every Private Limited Company is required by the MCA to complete required secretarial compliance files or RoC compliance by the deadlines specified in order to avoid penalties. What ROC Compliance of Private Limited companies are discussed in this article.
What is Private limited company?
A well-known type of limited liability form of ownership is a private limited company. A private limited corporation must be incorporated and run by a minimum of two people. The minimum amount of paid up capital for the company is unrestricted. For millions of small and medium-sized businesses that are family-owned or managed by professionals, a private limited company is the most recommended form of business entity due to its distinctive features, such as limited liability for shareholders, the capacity to raise equity funds, and perpetual succession.
Introduction: What Are roc filing for private limited companies?
A private limited company is the corporate structure that is most suitable for medium-sized to large firms as well as for companies looking to grow more quickly and significantly. The Corporations Act of 2013 regulates the registration process and other requirements for private limited companies. For a private limited company to be incorporated, the Act specifies a few requirements. For instance, the company should consist of no fewer than 2 and no more than 200 people.
The fact that a private limited corporation grants its members with limited liability is its most remarkable characteristic. The private limited company is now a distinct legal entity according to the Companies Act, 2013. Being a legal entity, the private limited company is required to comply with the Act’s requirements in order to maintain its active position. Regardless of the company’s turnover, these annual compliances must be properly followed. Failure to comply would result in the company’s name being removed from the RoC registry (Registrar of Companies).
The compliance for private limited company can be roughly categorized as follows:
RoC Annual Compliance is required.
Event-Based Compliance with RoC.
Now let’s understand in detail about annual compliance for pvt ltd company and its categories.
Mandatory annual roc filing for private limited companies
A Private Limited Company must adhere to several regulations during its working period and complete information on annual compliance for pvt ltd company :
Board meetings:
A private limited company must hold its first board meeting no later than 30 days after incorporation. After that, a firm is expected to hold at least four board meetings annually, with no more than 120 days separating two consecutive board meetings. One Person Companies (OPC), Small Companies, Section 8 Companies, and Dormant Companies are only needed to hold one Board meeting per half-year, with a minimum of 90 days elapsing between meetings. The directors must be notified seven days in advance of any board meetings. Additionally, board meetings may be called on short notice. A board meeting requires a quorum of either two (2) directors OR one-third of the entire membership, whichever is higher.
Annual General Meeting:
All company, with the exception of an OPC, must hold an Annual General Meeting of its Members for the purpose of establishing the financials and board report, choosing the auditor, choosing the directors, etc. The company’s first AGM must be held nine months after the conclusion of the previous fiscal year. The subsequent AGMs, however, must be held within six months of the fiscal year’s conclusion. However, there cannot be more than a 15-month interval between two AGMs. A 21-day notice must be given to all members in order to schedule an annual general meeting. AGMs may also be called with less notice.
Appointment of the Auditor (Form ADT-1)
Within 30 days of the company’s incorporation date, companies are required to appoint their first auditor. The appointment of the first auditor must be made using Form ADT-1 before to RoC and will last for five years. Form ADT-1 must be submitted to the RoC if a new auditor is chosen by a company within 15 days of the annual general meeting.
All Directors shall disclose their holdings in any other entities on Form MBP-1 at the Company’s annual first board meeting.
Annual Return and Income Tax Filing:
For each financial year, every firm is obliged to file an income tax return with the IRS and have its accounts examined by an outside auditor. The business must also submit Form AOC-4, along with its audited financial statements and the director’s report, to the ROC within 30 days of its annual general meeting. In contrast, the business has 60 days following its annual general meeting to file its annual return using form MGT-7. The following ought to be mentioned in financial statement:
Balance sheet
Information on the specifics on the balance sheet.
Particulars on corporate social responsibility.
All of the business transactions between connected parties.
Information about the profit and loss statement.
The audit report as well as any further unrelated transactions (both directors and secretarial audit).
Information regarding the board meeting and auditor should also be filed.
Ongoing maintenance of Statutory Registers:
A firm must legally keep track of a number of registers, including the minutes of board meetings, annual general meetings, and meetings of debenture holders, registers of charges, share certificates, and members, among others. Submitting Form MGT-7.Within 60 days of the day the annual general meeting was held, every firm has MGT 7A Applicability. It should include the following details:
The meeting’s board and member details.
Other holdings and affiliated firms’ registered office and main place of business.
Holders and members of the Debenture, including the modifications.
Important managerial figures, directors, and promoters with a notice of the modifications.
Directors and other important managerial staff are paid.
Information on the legal disputes that the business is facing.
Specifics of any fine or penalty assessed against the business.
Holdings of shares
Securities such as shares and debentures.
Indebtedness or liability.
Compliance certification is important.
Director’s Identification Number (DIN) KYC Filing:
Every person who has received a DIN must file form DIR-3 KYC with the ROC in order to provide their KYC information for each fiscal year. Failure to submit form DIR-3 KYC would result in the deactivation of your DIN and a late filing fine of Rs 5,000.
Certificate of Commencement of Business:
All firms established after November 2018 are required to submit form INC-20A for the Certificate of Business Commencement inside 180 days of the company’s formation. This is a one-time mandatory compliance.
Private limited Companies Compliances based on Event
In addition to the annual filings, there are numerous more compliances that must be completed whenever an event occurs within the organization. The following are examples of such incidents in detail:
Within 30 days of making the changes, the RoC must be notified of the changes in the directorship by filing the e-form DIR 12 with Section 149.
Change in Authorized Share Capital
The e-form SH-7, referred to in Sections 61 and 64, must be submitted by the firm to the RoC within 30 days of any change in the authorized share capital.
Returning of Allotment:
Within 30 days of approving the special resolution, the firm must notify the RoC by filing the form MGT-14, thereby acknowledging the permission given by the shareholders. The e-form PAS-3 must be submitted within 15 days following the share allocation. Section 62 mentions each of them.
Satisfaction of charges to be Registered:
The business must file the e-form CHG-4 and notify the RoC of the same as per Section 82 within 30 days of the date of charge satisfaction.
Modification of Charge:
The e-form CHG-1 must be submitted within 30 days of the date when the company establishes or alters charges following Section 77. By paying the necessary supplemental charge, the e-form may be submitted within a 120-day maximum period.
Appointment of Statutory Auditor
Within 15 days of the statutory auditor’s appointment, the e-form ADT-1 required by Section 139 must be submitted to the RoC. The e-form ADT-3 must be submitted within 30 days following the auditor’s resignation.
Resignation of Statutory Auditor
Section 140 says the company is needed to notify the ROC by filing an E-Form ADT-3 within 30 days of the Resignation of the Auditor.
Changing the Registered Office:
After the Special Resolution, the Company has 30 days to file E-Form MGT-14. In E-Form 23, the company must get RD approval for the change of registered office. The RD’s approval order must be submitted in E-Form INC-28 within 60 days. After the RD has been approved, the Company has 30 days to file the INC-22.
Delay in Payments towards MSMEs:
A company must file an E-Form MSME before the 30th of April and the 30th of October every year to notify the ROC if payments to MSMEs are delayed for more than 45 days.
Return of Deposits:
Every annual year ending according to Section 73 on March 31st requires the company to submit an E-Form DPT-3, Return of Deposits and Money Not Held as Deposits, to the ROC by June 30th.
Resolutions and Agreements:
According to Section 117 and Section 179 the RoC must receive the resolutions and agreements that the private limited company has entered into and signed using the MGT-14 form.
Maintenance of statutory registers and accounting books:
To notify the ROC of the extra space, except for the registered office of the private limited company where the books of accounts and statutory registers are kept, the board’s decision to amend section 128 should be executed within 7 days of filing the form AOC-5.
Disclosure of Substantial Beneficial Ownership (SBO)
According to Section 90, the Company must submit E-Form BEN-2 to the ROC with information about the Substantial Beneficial Owners.
Calendar ROC Compliance Calendar 2022-23 Due dates
Companies and Limited Liability Partnerships with Indian registrations must submit all necessary ROC Filing Forms by the deadlines given.
The Companies and LLPs risk paying a large fine if they disregard the ROC filing requirements.
Therefore, it is crucial for businesses and limited liability partnerships (LLPs) to keep track of all the crucial deadlines for both annual and event-based ROC compliances.
Here is a ROC Compliance Calendar 2022-23 :.
Form Name
Particulars
Period of time
Due Date
MSMe 1
Half-yearly form for unpaid MSME invoices
October 2022 to March 2022April 2022 to September 2022
30.04.2022 31.10.2022
LLP 11
LLP Annual Return
FY 2021-22
30.05.2022
PAS 6
To be submitted by an unlisted public company for the half-yearly share capital audit report.
For a half-year ending on 31st March 2022 For a half-year ending on 30th September 2022
30.05.2022 29.11.2022
DPT 3
Return of Deposits
Financial Year 2021-22
30.06.2022
FLA
Annual Return to RBI
FY 2021-22
15.07.2022
DIR 3 KYC
KYC of Directors or Partners
FY 2021-22
30.09.2022
AOC 4
Form for filing Financial Statements
FY 2021-22
29.10.2022 (Within 30 days of AGM)
ADT 1
Notice to Registrar for Auditor Appointment
FY 2021-22
14.10.2022 (Within 15 days of GM)
MGT 14
To be filed by the companies after passing any resolution (On the occurrence of any event)
FY 2021-22
29.10.2022 (Within 30 Days of Passing of Board Resolution)
MGT 7
Annual Return
FY 2021-22
28.11.2022 (Within 60 days of AGM)
The deadlines for the ROC Compliance Calendar 2022-23 must be noted by businesses and limited liability partnerships. The aforementioned dates, however, are open to modification and extension as and when announced by the relevant government department.
Why Would a Private Limited Company Need to Filer a RoC Compliance?
The company and the executives accountable for the non-compliance shall be fined for the duration of the default for any failure to comply with the RoC: https://www.mca.gov.in/MinistryV2/compliancerelatedfiling.html. The amount of the fine will be calculated daily and for the entire duration that the default persists. Additional fees must be paid in the event of late filing. The requirements of compliance for private limited company should therefore be followed by every organization.
It can be very stressful to run your company’s day-to-day operations and follow corporate compliance requirements at the same time. To ensure timely compliance and the avoidance of interest or penalties in the easiest possible way, it is therefore best to pair up with Caonweb, the expert Mr. Sanket Agarwal will help in annual compliance for pvt ltd company process worldwide, having experience of registering more than 1000 + companies in different country like India, Hong Kong, Dubai etc. Offering best CA Near me services!!!
FAQ
Q – Can you list a few of the ROC’s requirements for private limited companies?
An annual general meeting must always be held for a private limited business. Companies must hold their AGMs within six months after the financial year’s end. The Director’s report can be made using all the data needed by Section 134.
Q – What occurs if ROC filing is not completed?
The corporation and the directors are both responsible for the penalties and repercussions for failing to file the ROC Filing. A fine of Rs. 50,000 must be paid by the company and the negligent officers.
🟢Form 10BD required to be filed for donations received is now live. Excel CSV Upload option available.
📢 REMINDER TO TRUSTS REGISTERED U/S 80G:
All the Donations which are eligible for exemption u/s 80G received by the Trusts for the Financial Year 2021-22 required to be filled in Form No. 10BD and should be electronically uploaded accompanied with signed by the Managing Trustee/Office Bearer before 31st May 2022.
📢 Updation of UDINs at e-filing Portal
After receiving various complaints by the members for Invalidation of the UDINs at the e-filing portal of Income Tax Department, certain technological changes have been made in the site. So, now the Members are advised to again try updating those UDINs which have been invalidated earlier at the e-filing Portal.
Members are also hereby intimate to kindly update all the pending UDINs for FORMs or certificate etc. at the e-filing portal on immediate basis. Points to be noted that the last date with which UDINs are required to be updated at the e-filing portal is 31st May 2022.
Further, while generating the UDIN all the members are advised to be careful in selecting the Correct fields.
For any clarification, please get more information to Click Here: CAONWEB
Shops are something which is associated with almost everybody’s day to day life. Almost all the shops that we see in our daily routine life are subject to shop & establishments registration. The sole purpose of this act is to regulate the functioning of small & medium sized shops, wage payment, terms of service and various other working conditions in a shop. As per the shops & establishments act, one must mandatorily possess a shop license to proceed with the said business in the area.
What is a “Shop or an establishment”?
Shop & establishment act defines shops as those premises where the sale of goods or service is undertaken either in the retail or wholesale format. Whereas, a shop, commercial establishment, hotel, theatre or amusement park etc. all of these form a part of establishment.
Following category of business owners need to have a shop license before starting their business operations.
Retail shops
Wholesale shops
Commercial establishments
Warehouse, godown or storeroom.
Entertainment & amusement theatres
Corporate office where services are rendered.
What is the shop registration process in India?
Every state in India has a separate law that governs the shop registration and hence different shop registration process differs from state to state but broad guidelines for shop registration the same throughout. Some of the typical steps involved in getting shop registration certificate are as follows:
Submission of application: within initial 30 days of business operation a business entity must apply for the shop license. The application can be made in person or one can submit the fill the form by visiting the state department of labour official web portal.
Registration fee & document submission: Along with the application a certain set of supporting documents also needs to be uploaded so as to verify the application. Therefore following list of document needs to be submitted along with the registration fee.
Name of the shop with photographic proof of business name board & entrance.
Memorandum & articles of association (if any); generally in case of LLP or company.
PAN details of so formed business entity.
Owner identity proof (if rented property).
Directors list with identity & address proof.
Complete details of existing employees.
Inspection: Chief inspection officer from the labour department of state must be present at the site for the purpose of inspection. Only on being satisfied with the site location and details mentioned in your application form, the officer will prepare his report.
Shop registration certificate: After successful inspection by the officer, you will get registration approval that day only and the physical shop registration certificate will be issued within minimum time period.
The provisions of shop & establishment act do not apply to:
Establishment used to treat infirm, destitute or mentally unfit for the role.
A worker who is at the supervisory or managerial level
Office of central/state government or local authority
A worker who holds a confidential position
Office of RBI
Opening a shop has been much easy as compared to a company registration or a LLP. But still there are certain grey areas where an individual needs to consult a financial & legal expert to put things to work. CAonWEB will help you and make it easy to get shop registration certificate so that an individual need start their business operation on time.
Get in touch with our legal experts about shop registration certificate and the most effective shop registration process in India.
194 IA Governs the provisions of TDS to be deducted on any immovable property transfer.
APPLICABILITY:
A person who is purchasing any immovable property (other than agricultural land) from a resident needs to deduct TDS at the rate of 1%.
There is no need to deduct TDS If the property value is less than Rs. 50 lakhs.
EXCEPTION:
In case of 194LA regarding compulsory acquisition, provision of this section 194IA is not applicable.
If the seller is non-resident Indian or NRI then TDS is to be deducted under section 195 on basis of capital gains and not under this section.
For properties which are under construction, TDS will be deducted only on installments paid on or after 1st June, 2013.
TIME OF DEDUCTION:
Time when tax deducted is to be made is at the time of credit of such amount to the account of the payee or at the time of payment whichever is earlier. The date of registration, agreement or contract is not relevant to decide the time of payment of TDS.
When the purchase price of the property exceeds rupees. The TDS will then be deducted from the first installment itself and for all installments. The buyer should not wait for the aggregate instalment amounts to exceed Rs. 50 lakh. It is incorrect to assume that TDS is to be deducted from final instalment or when amount exceeds Rs. 50 lakhs.
If the purchaser has taken bank loan and the bank pays directly to the seller in this case also TDS needs to be deducted on date of such payment to the seller.
In such case, it should be considered that the amount paid by bank is after tds and tds to be paid. For Example: – A bank pays Rs. 400000/- to the seller, so we should consider this as payment after TDS and so the gross payment will be 400000/.99 = 404040.40/- So the purchaser has to pay Rs. 4040 as TDS.
DUE DATE OF TDS PAYMENT AND FORM 26QB
The deductor that is person buying property has to file form 26QB which is a Challan cum declaration statement within 30 days from the end of the month in which payment is made. It is not possible to file a separate TDS return for such deductions. Form 26QB must be submitted online.
OTHER NOTES
• TDS is deducted for each installment payment and you must submit a separate Form 26QB for each deduction.
• Form 26QB is submitted for a combination of one buyer and one seller. As with one buyer and two sellers, if you have two buyers and two sellers, you will submit four forms 26QB (two forms for each buyer) for each deduction.
• You do not need to obtain a tax credit account number (TAN) for those who are required to take a tax credit in this section. Only the buyer’s PAN minus TDS is required to submit Form 26QB.
A major part of India’s GDP is from agriculture and allied products. India being one of the agricultural rich economies has its strong presence and goodwill of agricultural products even overseas. APEDA which is a government registered body working directly under the Ministry of commerce & industry is the apex institution to govern the SOP for APEDA registration in India. APEDA act came into force in 1986 by Agriculture & processed food product export development authority act, 1985 passed by parliament.
Development of agriculture related Industries: By way of providing financial assistance, surveys, research studies, reliefs or subsidy schemes etc.
Registration: Export registration on payment of required fees.
Setting quality standards of the product for exports.
Packaging and marketing of scheduled products.
Training & development of industrial personnel.
Carrying out inspection.
How to get complete guidance about APEDA registration in India?
There are a set of agricultural products specified under the APEDA which are known as scheduled products. The exporters of such products require prior approval from the authorities to export them via. APEDA registration in India.
One of the most opted out methods to get APEDA registration is to hire a consultant who will look after all the registration, documentation & compliance procedures for APEDA registration in India rather than keep a close watch on your operations.
Find the most trusted APEDA Consultant [https://www.caonweb.com/apeda-registration.php] >>> fill up the expert consultancy form >>> APEDA consultant will get in touch with you shortly >>> customized advice for each product.
Till the time your APEDA query is in process you can grab as much information about APEDA its benefits, documents required and get answers to all your queries from our website.
What are the advantages related with APEDA registration in India?
Export of scheduled agricultural product requires APEDA registration
Financial credit assistance scheme of government to promote agricultural products
Helps in brand publicity across borders
Expanded market outreach which will help the exporters to understand various other products and the business environment of the exporting country.
Participate in the training & development programmes organized by APEDA.
What is the procedure for APEDA registration in India?
Sections 12 of APEDA act, 1985 pens down all the rules & regulation compliance which are required for APEDA registration in India. Who is required to have APEDA Registration? It states thatevery person exporting one or more scheduled products shall opt for APEDA registration, before the expiry of one month from the date on which he undertakes such exports or before the expiry of three months from the date this act came into force, whichever is later.
CAONWEB being the most trusted Chartered accountants financial firm will help you in providing all sorts of APEDA registration assistance till you get your final RCMC certificate. Apart from APEDA registration we will also help in all your business compliances.
2.) Find the “Register as Member” clickable option on the right side.
2.1. Basic details: IE Code, name of the company, Email ID & contact no.
2.2. OTP Verification: Email ID & registered number; the exporter needs to first verify both of them separately.
3.) Fill the application form and upload the necessary documents.
4.) APEDA registration fees + 18% GST should be paid through online mode/offline mode.
5.) Application number is generated once the payment is made.
6.) Login details will be sent to the registered Email ID & Contact number.
7.) Exporters can view the status of the application by clicking the “Track Application” icon.
8.) In case of any missing information in the application form, the export will need to resubmit the form online.
Hiring an APEDA Registration Consultants will certainly give you an edge over your competitors because of various reasons such as; expert advice, market analysis, eases in APEDA registration, compliance friendly enterprise.
There is a social responsibility of every individual & corporation towards nature, environment & society at large. Therefore for a company registration in India, one must adhere with the CSR guidelines as specified in the companies act, 2013.
Section 135 of Companies Act:
Section 135 Companies act, implies the formation of a corporate social responsibility committee or CSR committee consisting of three or more directors. This CSR committee must ensure that the company is spending the requisite amount of 2% in every financial year on the CSR activities.
Which corporation comes under the ambit of CSR: Section 135 companies act, 2013
Company having a net worth of Rs. 500 Crore; Or
Company with an annual turnover of Rs. 1000 Crore; Or
Company which is having an annual net profit of Rs. 5 Crore.
Section 134 mandates that the committee must file the report
Containing the details of composition of the CSR Committee.
Recommendation of the committee to the company’s board.
Monitor the CSR activities of the company.
How much should one corporation spend on CSR activities?
The minimum amount which a company is bound to spend on their CSR activities is 2% of their average annual net profit of three (3) immediately preceding financial year.
As there is a minimum amount being specified under the companies act, 2013 there is no maximum limit for the same. Companies can also spend more than 2% in case they wish to do so.
In addition to the above mentioned details a company must prioritise their CSR activities in their region of operation since this will signify a sense of responsibility of the company towards the region in which it operates.
What are the benefits attached with CSR activities?
Goodwill & Public relations
CSR helps in improving the public image of the company at large by considering the steps initiated by the company for the betterment of the society and increase the goodwill of the company by positive narrative & word of mouth.
Social Media Visibility
CSR activity brings the organization into the limelight of the social media which increases the media coverage and the social presence of the company.
Enhance the brand value
Building a social media presence and the customers having a strong narrative towards your company then certainly the brand value of your organization will become strong over the time. This brand value will help in growth of your revenues, more customer loyalty, satisfied customers and enhance your relationship with them.
Outshine among your competitors
If your CSR activities are perfect and unique than those which your competitors are opting for then certainly you will see the change in your revenue figures.
This is an opportunity for every business that they can leverage in their favor. Most businesses consider this as an expense or a burden but this is a chance to connect with your potential audience & build an informal connection and then your real side, value & beliefs of your organization.
