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Partnership Firm is one of the most important forms of a business organization, where two or more people come together to form a business and divide the profits thereof in an agreed ratio. A Partnership is easy to form, and the compliance is minimal as compared to companies. Partnership registration is not compulsory and in at the discretion of the partners whether they want to register partnership firm or not. But a partnership firm cannot avail legal benefits if it is not registered, hence it is always advisable to register it.

Sole Proprietorship Firm Registration is Single Person Firm Registration i.e is the main objective is Open Current Bank Account on the Name of Business so it’s a simply firm which is enable doing business in India with Less Compliance and Less Costing. a Sole Proprietorship Firm require minimum 2 Legal Entity Proof for open a Current Bank Account.

The Public limited company is the company which is incorporated or registered under the Companies Act, 2013. It is different from the Private Limited Company, and therefore its compliance also changes. The shares of a Public limited company is issued to the public. These shares are then freely traded. Public Limited Company is also called as publicly held company. It can be listed on stock exchange, but for Private Limited Company it should first get converted in to a Public limited Company, only then it can be listed on stock exchange. In Public limited company, there should be a minimum paid up capital of Rupees 5 Lakhs, minimum 3 Directors and a minimum number of shareholder should be 7. Compliance for the Public Limited Company is also more as compared to other company. Features: There are many of the characteristics of the Public Limited Company like; Directors: According to the Companies Act, 2013, to start up a Public Limited Company you must require a minimum of 3 Directors and there can be an increase in a number of Directors in the future. Limited Liability: The liability of each shareholder is limited. In simple words, a shareholder of a Public Limited Company isn’t personally responsible for any loss of the company for any amount greater than the amount invested by them. Paid Up Capital: A Public Limited Company is required to have a minimum paid-up capital of Rs. 5 lakh or such higher amount as prescribed under the act. Prospectus: A Prospectus is a legal document which is drafted by Public Limited Company that includes securities for sale, investment shares and many more. This is made for the Public especially. Name: This requirement comes under the Companies Act, 2013 which is a must for all the public companies to add the word “limited” after their name.

Private Limited Company registration is the most popular legal structure option for businesses in India. A private limited company can have a minimum of two members and a maximum of fifty members. The directors of a private limited company have limited liability to creditors. In a case of default, banks/creditors can only sell company’s assets but not personal assets of directors. If you want to start a company in India then make sure your company is registered as Company Registration should be your first priority. It is very important to register your company as a registered company have multiple advantages from easy to register to easy to dissolve. Start-ups and growing companies prefer private limited company as it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent.

One Person Company is a new and useful concept in India which is usually introduced by The Companies Act 2013. It is one of the best ways to start up a new company. It is a legal entity separate from its member, offering limited liability protection to its sole member. OPC is adequately a company that has only one shareholder as its member. How to form OPC’s (One Person Companies) A single individual can make an OPC by subscribing his name to the memorandum of association and fulfilling other requirements lay down in The Companies Act, 2013. Such a kind of memorandum just states the details of the nominee who shall become the company’s single-member. If in case of an original person dies or incapable to involve in all these contractual relations. Along with an application of registration, the memorandum and the nominee consent to his nomination should be filled to the registrar of the companies. They can get back their names at any point in time by submission of requisite applications to the registrar. The nomination of that person can also later be removed by the member.

LLP (Limited Liability Partnership) is an act which is firstly introduced in India under the Act of 2018, the main purpose to establish this Act is to offer a form of business entity that is simply maintained while LLP provided to the owners. In a common business Partnership, you don’t need any documentation to establish your Partnership. A common Partnership is one in which all the persons can manage and control all the business and you can also take any kind of legal and official decision. If any of the partners are liable to pay his debts and loss, then along with that person other people have also pay the debts. On the other hand, In LLP, there is required a Partnership Agreement. In this, some required information about the partners and business must be filled. A limited member is one in which he or she is not responsible to pay all the other personal debts. But they can lose their investment in the business. They have no authority to run all the business lonely. These members have a general partner which has the authority to run the business or take the legal or major decisions. The agreement specifies all the roles and responsibilities of that general person along with the liable person. In this agreement, each partner has a right that he or she can leave anytime from the partnership and the new person can be added to this partnership anytime.

A Digital Signature Certificate (DSC) is a secure digital key that certifies the identity of the holder, issued by a Certifying Authority (CA). It typically contains your identity (name, email, country, APNIC account name and your public key). Digital Certificates use Public key Infrastructure meaning data that has been digitally signed or encrypted by a private key can only be decrypted by its corresponding public key. A digital certificate is an electronic “credit card’’ that establishes your credentials when doing business or other transactions on the Web. Documents Required For Digital Signature (DSC) Passport size photograph PAN card copy Copy of Aadhaar Card/ Voter Identity Card Why Digital Signature (DSC) Validity-Digital Signatures usually comes with validity of one or two years and they can be easily renewed once validity expires E-token-Digital signature certificate are stored in a secure USB Flash Drive called E-Token. Quick Processing-One can get DSC in very quick time of 1-3 days from date of submitting the application along with required documents. Class II Digital Signatures-It is used for company, LLP registrations, IT Return E-filing etc. Class III Digital Signatures-It is used mainly for E-Tendering and Participation in E-Auctions.

Previously known SSI registered entities are now known and registered as MSME, i.e.; Micro, Small and Medium Enterprises. MSME stands for Micro, Small and Medium enterprises, categorized based on the annual revenue in business. These entities possess MSME registration certificate, registered with MSME Department of the Central Government under MSME Development Act, 2006. The Act was enacted for the promotion and growth of the businesses operating at small or medium scale. Where all major activities were eligible for registration under MSME earlier, trading and other few activities are now specifically excluded from eligibility. Although the registration is voluntary, businesses prefer to obtain MSME registration online due to numerous benefits declared by the government.

Considering the recent trends in the business sector, a gradual shift of businesses is observed from the local market to the international market. To spread reach and conquer the international market, the import and export activities are undertaken which further requires the Import Export Code. Import Export Code is a 10 digit unique code allotted to the business entities that allow imports and exports. The code is allotted by the Directorate General of Foreign Trade (DGFT) to the applicants. Register for IEC code online comes with one-time registration and lifetime validity. The process for import export code registration has become simpler with online IEC application supported by a few documents.

FSSAI registration is a mandatory compliance used to ensure the safety of food products and it is essentially a food safety certificate issued by the food authority in India. This governing body, also known as Food Safety and Standards Authority of India (FSSAI) marks businesses compliant with the regulations of the Food Safety and Standards Act, 2006. FSSAI license is mandatory before starting any food business. All the manufacturers, traders, restaurants who are involved in food business must obtain a 14-digit registration or a license number which must be printed on food packages. This step is taken by government’s food licensing & registration system to ensure that food products undergo certain quality checks, thereby reducing the instances of adulteration, substandard products and improve accountability of manufacturers by issuing food service license.

Trade License is a certificate/document which grants the permission to carry on a particular trade or business for which it is issued. It does not confer ownership of property or permission for any other activity other than for which it is issued. The License Department is the authorized department by the municipal corporations which issues licenses in consultation with other specialized consultative departments like Fire Brigade, Health, Engineering, Estate and others of same type. In perspective of this, it is important for any business establishments to take fundamental licenses from the License Department before starting manufacturing, exchange or storage of any activity/commodity. The application must be received from the business establishment, 3 months before the commencement of activity. Trade License is valid for the financial year only, at the end of 31st March, this license will automatically be expired and need to be renewed.

Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax. Professional tax is imposed at the state level in India. Different states have different rates and methods of collection. It is not imposed in all states. The states which impose professional tax are Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional Tax is deducted from the salary of the salaried employees by the employers and same is deposited with the State Government.

To start the Pharma business, a drug license is required. The central drugs standard control organization and state drugs standard control organization issue the drug license in India. The provisions for this has been made in Drugs & Cosmetics Act, 1940 which is applicable to whole of India. It is an Act to consolidate all the laws relating to drugs & cosmetics, which established the Drugs Control Department. In 1964, the Act was amended to include Ayurvedic & Unani drugs. However a particular business entity may require different types of drug license based on their business. Normally, the drug control organization issues two types DL one is Retail drug license which is issued to a person who runs a chemist shop and another one is a Wholesale drug license which is issued to a person who wants to sell drugs on a wholesale level. In case a business is operating in more than two states, it has to obtain drug license in every state in which business is being carried on. Drug license is location specific. If drugs are sold or stocked for sale at more than one place, application shall be made, and license shall be issued, in respect of each such place except migrant vendors. Once the license is granted to the business, all such License must ensure that all the condition in the drug license are compiled at all the time during the course of the business. All the records /registers /Forms must be maintained in the manner specified by the licensing authorities and authorities shall be kept informed for all the changes or modification in the business activities.

EPF (Employee Provident Fund) Registration is a process to give social benefits to employees. It is very best scheme for the employees which comes under Employees Provident Funds and Miscellaneous Provisions Act, 1952 which is regulated by the organization of Employees Provident Fund. According to the act, if the strength of the company is more than 20 employees then it’s mandatory for the establishment to obtain EIN No. If the employee strength of the company less than 20 then the company can apply for EIN. Any company can get the EPF registration certificate within 30 days from the date of the employment of 20 employees. Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family. Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit. All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.

Permanent Account Number (PAN) allows the government to keep a record of all kind of Official Financial Transactions that may be difficult from accessing an Individual or Companies Tax Liability. PAN is a 10 digit alpha-number character, issued in the form of laminated card. Once a Pan Card is issued, no continued compliance filings are necessary and it is valid for lifetime of the entity. Tax Deduction & Collection Account Number (TAN) is a 10 Digit Alphanumeric Number abbreviation used for Tax Deduction and Collection Account Number. Under the Income Tax Act, a payer is required to deduct tax at appropriate rates, from payments of specific nature (like salary, payments to contractor or sub-contractors, professional charges, payment of rent, etc) and deposit the same with Central Government- quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source.

Nidhi Company is a Company registered under the Companies Act, 2013 which has a sole objective of cultivating the habbit of thrift and saving amongst its members. Nidhi companies are allowed to take deposit from its members and lend to its members only. Therefore, the funds contributed for a Nidhi company are only from its members (shareholders) and used only by the shareholders of the Nidhi Company. Nidhi Company is a class of NBFCs and RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhis deal with their shareholder-members only, RBI has exempted the notified Nidhis from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal entity to take deposit from and lend to a specific group of people.

A producer company is basically a company registered to deal with the primary production of its active member related to farming. The main objective includes production to its selling and exporting also. For the purpose of incorporation of producer company, Part IXA of Companies Act, 1956 is applicable until any special Act is enacted for such companies. A producer company is registered with ten or more member being producers; or any two or more producer institutions; or its combination. Alike any other company, the liability of its members is limited to the extent of unpaid share capital by its members. The producer company is deemed to be a private limited company under this Act, however, the threshold of the number of members does not apply to same.

Popularly known as Section 8company is a company registered with charitable objects such as the promotion of Arts, commerce, science, education, sports, protection of the environment, religion, charity, etc. By promoting it as a not-for-profit organization, the Act does not bar the company from profit creation but rather prohibits distributing profit among members. This says that all the income or profit from any activity of the company must be utilized towards charitable purpose for which it is registered. The charitable company is registered under Section 8 of the Companies Act, 2013, which provides it special status due to its objects. Compared to other types of companies, Section 8company enjoys various exemptions and relaxations.

NGOs or the Non-governmental organization’s are usually non-profit. Sometimes these are often funded by the government. Some international organizations are independent upon the government and international governmental organizations (as funded by them). However, these are active in humanitarian, human rights, educational, health care, public policy, social, environmental, and other areas to effect changes according to their objectives. There are Documents required for section 8 which is also called a Non-Governmental Organisation without them the respective government will not be able to give commencement for the registration any company. NGO can be registered as a legal entity in various ways: Trusts Societies Non-Profit Companies/Section 8 Company

A trust is a convenient method whereby a limited number of persons may hold property on behalf of other persons, who may be a large or fluctuating body or who may include persons not yet born. Once the property has been vested in the trustees, they own the property, but they are compelled by law to exercise their ownership for the benefits of the beneficiaries and for them only. It means that legal ownership vests in the trustee or trustees but beneficiaries have de facto ownership. Minimum of seven people is required to form a society. And these societies are governed by the ‘Societies Act, 1860’. The rules and regulations for these may slightly differ from State to State.

The Goods and Service Tax is the biggest indirect tax reform which amalgamates all the other taxes into one single tax structure. Under GST Regime, the goods and services are now taxed under a single law being Goods and Service Tax Laws. The taxes are levied at a single rate. The collection is then bifurcated between both Central and State Government in name of CGST and SGST or IGST.The registration under GST is mandatory for the business entities based on the criteria of turnover or activities. The GST registration in India is completely an online process. GST Registration affirms seamless flow of Input Tax Credit in addition to providing recognition as a registered supplier. Owing to its benefits, many dealers also obtain the voluntary registration under GST. Who should apply for GST registration? Those who are registered under the Pre-GST Law (i.e Excise, VAT, Service Tax etc.) Those businesses whose turnover is above the threshold limit of Rs. 40 lakhs(Rs. 20 lakhs for the North- Eastern States, J&K, Himachal Pradesh, and Uttarakhand) For the casual taxable person/ Non-resident taxable person. Those who are the agents of the supplier and Input service distributor. Individuals who are paying tax under the reverse charge mechanism. Those who supply via e-commerce aggregator. Those who are supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person. All E-commerce aggregator.

Goods and Service Tax law now governs the major portion of the indirect tax system in India. The suppliers registered under this regime need to fulfill the compliance requirement regularly. Based on the turnover and the activities, the requirements and period of filing returns are prescribed under law. With online GST return filing, the taxpayers intimate the Goods and Service Tax Network (GSTN) about the inflow and outflow of supplies including the amount of tax paid and collected. While recording the taxable transactions with Government, the taxpayer is also required to pay the amount of tax collected from an outward supplier of goods or services after the deduction of Input Tax Credit (ITC).

A person who is liable to deduct tax at source has to file the TDS return as part of compliance. A TDS return is submitted by Tax Deductor in respect of every quarter with the Income Tax Department. The return is a statement that entails the details of the tax collected, source of collection and tax paid to Government for the reporting period. Generally, tax is deducted on transactions such as Salaries, payment to professionals and contractual basis, payment of rents exceeding certain amount, etc. For every such type of transaction and payment, there is prescribed rate of interest. The deductee can claim the benefit of the tax deducted while ITR filing, only if the deductor has filed the TDS return on time.

There is no issue if Income Tax Notices are sent by the Income Tax Department. It can usually send for various reasons like not filing Income Tax Notice, there is no reason to be frightened. However, the Taxpayer concentrates on the nature of the notice, the requestor order in the notice and take steps accordingly. Reasons Behind to Got a Notice There are many reasons behind to receive a notice from the Income Tax Department like; Forget to file Return Return not furnish on time Tax Credit Mismatch Non-Disclosure of Income Non- Disclosure of Assets High-Value Transactions Investment in the name of Spouse or parents Wrong Information in Return Fake Deductions