WHAT IS ESOP?
Employee Stock Option Plan (ESOP) can be defined as Employee Benefit Plan, designed for the long-term benefits of the employees of the Organization by providing them with an option to participate in the equity ownership of the Organization by paying minimal amount of consideration.
Continue reading “ESOP – Employee Stock Option Plan”
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”
The most of common structures for Non-Profit Organization in India are Trust, Society and Section 8 Companies.
Trust: Trust is considered to be the oldest form of Charitable Organization. Trust can be either private or public. It is primarily created for the benefit of a section of people. Trust is governed by the Indian Trust Act 1882. The main instrument for Registration of Trust is Trust Deed. The creator of the Trust also appoints trustees. The trustees are given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified.
Society: Societies are governed under Society Registration Act 1860. It is generally formed by seven or more people who come together for a common charitable purpose. The main instrument for Registration of Society is the Memorandum of Association.
Section 8 Company: Section 8 companies are governed by Companies Act 2013. A company under this section can be formed for promoting charitable object relating to art, commerce, science, health and so on. These companies enjoy all the privileges and subject to all obligations of Limited Companies. Continue reading “Difference Between Trust, Society and Section 8 Company”
The process of Dematerialization of shares was introduced to convert the whole Capital Market into electronic mode. Dematerialization, in simple terms, is a process of converting physical shares into electronic mode which is maintained in an account with the Depository Participant. The Account in which the shares are maintained is termed as the Demat Account. Continue reading “What is Dematerialization of shares?”
All LLPs registered with the Ministry of Corporate Affairs need to file Annual Returns and Statement of Accounts for every Financial Year. It is mandatory for a LLP to file a return irrespective of whether it has done any business. There are three mandatory compliance requirements to be followed by LLPs.
- Filing of Annual Return
- Filing of Statement of the Accounts or Financial Statements
- Filing of Income Tax Returns
Continue reading “Mandatory Compliances for an LLP (Limited Liability Partnership)”