Sole Proprietorship (Individual)

A sole proprietorship firm (Individual) is such a type of business entity that is owned, controlled and managed by a single person. The Individual owner of the Business is called Sole Proprietor of the Firm. As the business is run by anIndividual person, there is no legal difference between the promoter and the business. The promoter himself receives all the profits.

The government of India has not prescribed any registration mechanism for registering a proprietorship firm Thus, the registration of a proprietorship can only be recognized through

• Registrations called Shop & Establishments (Ghumastadhara) that the business is required to have as per the rules and regulations of Local Authority.
• Tax registrations may include GST Registration and/or SSI/MSME/Udhyog Adhar Registration that should be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship.

Partnership

Partnership registration is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. It is owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium-sized businesses in the unorganized sectors.

Partnership firms are created by drafting a Partnership deed amongst the Partners and start a registered Partnership firm in India

Hindu Undivided Family (HUF)

An HUF is a family which consists of all persons lineally descended from a common ancestor, and also the wives and daughters of the male descendants. It consists of the karta, who is typically the eldest person or head of the family, while other family members are coparceners. The karta manages the day-to-day affairs of the HUF. Children are coparceners of their father’s HUF. Once a daughter gets married, she becomes a member of her husband’s HUF, while continuing to be a coparcener of her father’s HUF. Even Jain, Buddhist and Sikh families can have HUFs.

Under section 2(31) of the Income-tax Act, 1961, an HUF is considered a “person" and, therefore, is treated as a separate entity for the purpose of tax assessment. Often families that own ancestral properties and businesses obtain a separate Permanent Account Number (PAN) in the name of the HUF. This is done so that the incomes earned from the assets and businesses owned by the HUF are assessed separately, which also brings down the family’s tax liability. An HUF is taxed on the same slab rates that are applicable to an individual income tax Assessee.

Limited Liability Partnership (LLP)

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.

Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

Mutual rights and duties of the partners within LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity

Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held.

Private Limited Company

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. MCA has recently implemented major changes to the process and made it very simple to incorporate a company. In this article, we look at the private limited company registration process and documents required in detail.

Public Limited Company

A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. It’s stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market. A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholders

PAN Application& Income Tax returns

Permanent Account Number (PAN) is a ten-digit alphanumeric number, for eg. AAAAA0000A, issued in the form of a laminated card, by the Indian Income Tax Department, to any “person” who applies for it or to whom the department allows the number without an application.

After Taking PAN you can file your Income tax Return and Quote anywhere for statutory requirements.

TAN Application

TAN i.e. Tax Deduction and Collection Account Number is a 10-digit alphanumeric number, e.g. AELM12345L, required to be obtained by all persons who are responsible for deducting tax at source or collecting tax at source.

It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates, Annual Information Return and other documents as may be prescribed. There are two modes for applying for TAN- Offline and online

After Getting TAN You can Deduct TDS as per Statutory Requirements and Pay on Monthly Basis and Return Filing on Quarterly basis.

Udhyog Aadhar

Udhyog Aadhar is a twelve-digit Unique Identification Number provided by the Ministry of Micro, Small and Medium Enterprises, Government of India for small and medium enterprises in India. It is also known as Aadhar for Business.

GST Registration

GST Registration is applicable on all goods and services except Petroleum products as of now. GST (Goods & Service Tax) is a consolidated tax, which essentially means that State and Central Indirect taxes have been merged. Entire country now operates under a uniform tax system. It now replaces service tax, excise, VAT, entertainment tax, luxury tax, octroi, CST etc.

GST Registration Process in India is completely online. It requires no manual intervention or no physical paper submissions. A very simple procedure has been prescribed for GST Registration.

GST Registration is compulsory for traders, manufacturers, businesses, individuals, professionals etc, whose turnover (sales) exceed INR 20 Lakh. If your sales are less than INR 20 Lakh,but doubled the limit for exemption from payment of goods and services tax (GST) to Rs 40 lakh and announced that the higher turnover cap of Rs 1.5 crore for availing composition scheme of paying 1 per cent tax will be effective from April 1.

you may also voluntarily opt for GST Registration in case you wish to avail the benefits of Input Tax Credit. In northeast states, this limit is INR 10 Lakh. Further, all persons who make interstate purchase or sales of services or goods have to apply for GST registration. Above limits do not apply to them.

GST returns

GST return filing is completely an online process in India. It is very easy and quick. However, it is necessary that returns are filed correctly and error-free to ensure that GST credit can be passed on to the next stage. All you need is GST website login credentials to get started. Once you are registered, GST return filing is mandatory. Non-filing of GST returns entail heavy penalties.

All registered persons under GST are required to file various returns. Main returns to be filed are GSTR-3B (which is a monthly summary) and GSTR 1 (details of outward supplies). GSTR 3B is to be filed every month by 20th. GSTR 1 is to be filed on a monthly or quarterly basis, depending on the turnover. It is to be filed on 10th of every month or quarter, as the case may be. Finally, an annual GST return GSTR 9 must be filed by all GST registered entities on/before the 31st of December. GSTR 4 is to be filed if you have opted for composition scheme. The registered entities will be required to file GST returns even if the entity has not done any business during any period.

GST Modification

After receipt of GST Registration Certificate, if you wish to modify any fields such as name, address, email ID, contact details, you need to apply for GST Modification request.

GST Modification is divided into two parts: Core Fields and Non-Core Fields. Core Field changes require supporting documents to be attached while applying. Non-Core Fields can be updated without submitting any proofs.

Book Keeping (Accounting) Service

For small or medium businesses maintaining up-to-date bookkeeping is probably the most important part of the daily routine. The establishment of an accounting division, hiring and training bookkeeping personnel and buying bookkeeping software is costly. Such companies, whose core competency is not bookkeeping, can benefit by outsourcing to us.

Outsourcing bookkeeping services to Vikas Purohit & Associates will eliminate the need to have an accounting division while at the same time your organization can get access to professional bookkeeping services at just 40%-50% of the cost.

We have Highly Trained Accounting staff to work for fulfilled your Accounting requirements, to provide you Monthly MIS reports, Preparation of Accounts and Finalise Accounts as per Statutory Requirement of India.