Company Registration for NRIs and Foreign Nationals in India

Private Limited Company Registration is considered to be the most ideal for NRIs, foreign nationals and for foreign entities who want to set up business in India.

According to FEMA guidelines, Foreign Direct Investment (FDI) is restricted in other types of businesses like Proprietorship, Partnership Firm and One Person Company. Though FDI is permitted under the automatic route in LLPs operating in sectors where 100% FDI is allowed through the automatic route and there are no FDI linked performance conditions. Continue reading “Company Registration for NRIs and Foreign Nationals in India”

How to close a private limited company

We come across various instances when small businesses are not able to sustain in this highly competitive era and prefer to get closed down, rather than running on losses. Many a times, startups prefer closing down a Company when the founder’s drop their business idea in view of an alternate lucrative opportunity.

The Companies Act 2013 provides various modes of closing of Companies. One of such ways is declaring the Company as “Defunct” and getting its name struck out from the records of Registrar. This is a hassle free and easy exit mode provided to Companies, which could not commence their business or are not in operations. Continue reading “How to close a private limited company”

Compliances for Private Limited Company, LLP and OPC – a clear comparison

Being a Chartered Accountant and interacting with several entrepreneurs, I found that the most common question bothering startup founders is which business entity to form and what are the compliances of these entities. Hence, there is a need to summarize this essential information in a comprehensive manner and layman terms.

The three most preferred business entities in India – Private Limited Company, Limited Liability Partnership (LLP) and One Person Company (OPC) have some important differences in their compliance structure which affect their running costs as well. Continue reading “Compliances for Private Limited Company, LLP and OPC – a clear comparison”

Difference Between Statutory Audit and Tax Audit

Audit means an examination of books of accounts, statutory records, documents and vouchers conducted with the purpose of establishing the fact that the accounting records presents a true and fair view of the Organization.  It is conducted by a party which is independent of that organization.

There are various kinds of audit being conducted under different laws such as statutory audit, internal audit, cost audit, stock audit etc. Continue reading “Difference Between Statutory Audit and Tax Audit”