How to Register Foreign Companies in India

India is one of the fastest growing economies in the world with healthy resources and a large market base. In the past few years, there is a great boost in foreign direct investment in India (FDI) because of the changed regulatory environment in the past few years. Therefore, it is very easy for foreign nationals to start a business in India.

Sometimes people get often confused in “Indian Company” and “Foreign Company”. If a foreign national incorporates a company in India then it is an Indian Company. But when a foreign company set up a branch office in India then it is known as Foreign Company.

Foreign Direct Investment (FDI)

The amount/capital to be invested by any foreign national/NRI shall be classified as FDI in India. In 1990s, there was high number of restrictions on FDI in India where as today, there are amendments in all the rules and regulations of company formation in India.

FDI is classified as

•  Business where FDI is not allowed at all.
• Business sectors where permission is required from Foreign Investment Promotion Board(FIBP)
•  Business where no permission required.

All foreign nationals/ NRI’s must go through FDI policy before company incorporation in India in order to check any restrictions, prohibition in the proposed business activity

Entry Strategy into Indian Market

A foreign company can commence operations in India by incorporating a company under the companies Act, 1956 through registration of company or establishing a branch or liaison office.

Establishing a private limited company is the easiest and fastest way to set up in India. FDI of up to 100% into a public limited or private limited is permitted under the FDI policy wherein no approval from RBI or central government is required. For the purpose of registration or incorporation, an application has to be filed with Registrar of companies (ROC). For more information please visit http://dca.nic.in.

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How To Register A Trademark In India

When an outsider looks for startup business, the first thing they notice is the trademark. A trademark is  the identity of a business lies. It is the name and symbol under which a business undertakes its trade and commerce, which represents the company.
In India, trademarks are regulated by the Trade Marks Act of 1999. The Act aims to provide registration and better protection towards trademarks while preventing the use of fraudulent marks.

How to Choose a “Good” Trademark?

The mark(s) should be easy to remember.
It should be short and easy to spell and write.
It may be aesthetically appealing.
It should not ideally be descriptive in its nature.
It can be fanciful and coined, to avoid confusion.

“APPLE/ASUS/DELL/HP/LENOVO” for computers are an example of a non-descriptive and arbitrary mark, which makes for good trademarks.
“KODAK” for cameras is a coined term; that also makes a good trademark.
“MICROSOFT” for software, “LAKME/AMWAY/AVON” for makeup, are all good examples.

How to Apply For a Trademark?

Conduct a trademark search that will let you know if there are similar trademarks that are already registered.
Apply for a trademark registration. You can do this by yourself through the Government website, or get a lawyer to do it for you. The procedure of application is laid down in the Trade Marks Act, 1999.
An application number is allotted for every pending registration, which can be tracked on the website.
If the application is accepted, it will be published in the Trademark Journal. If there are no oppositions, your trademark will be registered to you. However, if there are oppositions, there will be a hearing in the Trademark Hearing Office to decide on the final registration of the mark.

Benefits of Registering Your Trademark

A registered trademark identifies and advertises the good/service.
It protects the commercial goodwill of the trader/owner of the trademark.
It protects consumers from buying forged or inferior goods.
In the case of an infringement of a registered trademark, the owner has the option of civil and criminal remedies. In the case of an unregistered trademark, the only remedy available to the owner is the option of filing a suit of passing off.

In India, it is not compulsory to register a trademark. However, there are certain obvious benefits of registration of the same. The benefits are enumerated as above:

Powerful Ways To Grow Your Business

Running your own business is often hard work, specially till you manage to build momentum and getting things moving smooth.
If you’re ambitious for your business, you won’t want to hang about. So here are nine growth strategies to help you get the most from your time and effort as a business owner or as an entrepreneur.
Before you give in to frustration, here is some advice that can help you to grow your small business successfully.
1. Patience Is Necessary
You’ll need to be patient. Contrary to what you see and hear, there is no such thing as a business becoming an overnight sensation. If you want your business to have a fighting chance, you’ll need to have a great deal of patience.

Continue Reading : http://ajsh.in/blog/powerful-ways-to-grow-your-business/

Tax Department Unveils Draft Rules For Registration Under GST

The government has put out the draft rules for the goods and services tax for discussion ahead of the September 30 meeting of the centre and states to discuss the regulations. In view of the right deadline, the finance ministry has asked for feedback by September 28. Rules relate to registration, invoice and payments, laying down procedures, guidelines and documentation.

The GST council will discuss the rules on September 30, The government has prescribed a largely online process for registration and laid down strict timelines for completing the process. We intend to have these rules approved by GST council in its meeting on 30th September so that business systems can be modified by all revenue.

It’s encouraging to see that the rules largely envisage electronic interactions between the tax authorities and industry with only need-based physical intervention like verification of premises on the application filed for Private company Formation in Gurgaon Indirect tax. Further all the PAN details are to be verified online with CBDT database which is expected to bring larger part of the business in the mainstream.

Your desired name must be included, typically with a corporate identifier, such as Corporation, Incorporated, Company, or an abbreviation, such as Inc. You may want to conduct a preliminarily name available search before submitting the Incorporation documents. If you incorporate online, the company incorporation in gurgaon service you purchase will typically include this. Remembers that the state holds final approval rights to ensure that a name is not already in use or in deceptive similar to one in use.

Much of this had already been explained through the FAQs issued by the finance industry earlier giving industry an advance peak into the details. Rules provide for complete electronic payment of tax and adjustment of credit and a unique ID number will be generated by the common portal for GST transactions for every debit or credit transaction.

Ittefaq Unplugged: The new form will be totally improved

The new form of B R Chopra's 1969 thriller Ittefaq featuring Sidharth Malhotra and Sonakshi Sinha will be a totally distinctive mammoth from the first.

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We get notification from solid sources that the new form will be completely redone including the personality of the executioner toward the end.

Says the source, "Each motion picture buff has seen the first Ittefaq which was delivered by the fabulous B R Chopra and coordinated by his sibling Yash Chopra. It was a way breaking anticipation thriller with a sterling execution by Rajesh Khanna as a mentally exasperates criminal on the run who looks for safe house in a home where a lady is in solitude in the house. It turns out toward the end that the lady has killed her better half."

Producer Abhishek Pathak to make lawful move against Lisa Haydon

Couple of months back, maker Abhishek Pathak was truly kicked about beginning the shoot of the continuation of Atithi Tum Kab Jaoge. The film titled Atithi In London was reported with Kartik Aryan of Pyaar Ka Punchnama notoriety and Lisa Haydon in the number one spot. In any case, a sudden unforeseen development has now made a noteworthy blockade between maker Abhishek Pathak and his driving star Lisa Haydon.
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The Housefull 3 performer Lisa Haydon as of late took to online networking to report her engagement with long time playmate and telecom head honcho Dino Lalvani. While the couple is making the most of their pre-conjugal euphoria time, we hear that the performing artist chose to pull out of the film only ten days preceding the film going on floor. Maker Abhishek Pathak uncovered that he as of late got a call from her supervisor expressing that Lisa is not intrigued by the film any longer. In spite of the fact that he doesn't know about the precise reason, Pathak presumes that the declaration about her wedding is likely the explanation behind the same. Altogether annoyed with the performing artist's unprofessionalism, Pathak has now chosen to make lawful move against the on-screen character and her ability administration group.

Rules For Picking A Company Name

When you decide to start your own company, the first step it to get it registered with the registrar of companies. To do this, you need to get various documents together. You also have to think of a unique company name. In the company incorporation form, you need to at least pen down 5-10 company names that are unique and suit your business. Based on the availability the registrar approves of one name.

Incorporation of company in India

Before deciding on a name, you can also conduct a company name search online. There are various websites that offer services where you can check if a particular name is available or not. However, the registrar of companies across India expect an applicant to follow a few naming guidelines. Sometimes, the approval of the name can be subjective. The approval depends on the officer handling your application. It is advised to follow the below guidelines to better your chances of approval:

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•    Unique component: Every company name should have a unique component. For example, in Flipkart Internet Private Limited, Flipkart is the unique component. Since the name has been taken, it will not be given to any other business that exists over the internet or even related categories such as e-commerce and online solutions. But in this too, there is some subjectivity. Some ROCs may not even approve the name Flipkart Chemicals saying that a well-known internet brand Flipkart already exists. Similar sounding names will also be rejected by the ROC.Chartered accountant firm

•    Blacklist: The ROC will immediately reject abbreviations, adjectives and generic words. If a company uses the words bank, exchange and stock exchange, it can be rejected unless it has been approved by the RBI or SEBI.

•    No common trademark: Make sure to check that there is no registered trademark by the same name on the IP India website. If it does exist, it can only be approved if you get a no-objection certificate from the owner who authorises to use it.

•    Descriptive component: The company name should not describe what you do. For example, if your company is into research, you cannot include the word research in the name.

•    Avoid unusual spellings: When creating a name, stay with words that can easily be spelled by customers. Also, check the spelling two-three times before submitting the documents to the ROC. A wrong spelling can cost you a lot.Starting Business in India

Thus, keep the above points in mind during company name search.

Why Bookkeeping is Important

What is bookkeeping?

By definition, bookkeeping is the process of recording your or a company’s financial transactions and the first basic step of the accounting process. The accounting process involves classifying, reporting and analyzing of data and none of it can take place if there is no organized and accurate bookkeeping. Chartered accountant firm in India

IMPORTANCE OF BOOKKEEPING IN A BUSINESS

Bookkeeping is one aspect that most business owners would not love to involve themselves in. On the contrary financial management is very crucial to sustaining and expanding a business. Without it, there is risk of hitting cash flow crisis, wasting money, scrambling for receipts and facing other financial information issues that could lead to the closure of a business. Chartered accountant in Delhi

Accurate bookkeeping is a necessity for each and every business that has a vision to grow or stand out in the competitive market. Many businesses which would otherwise have been successful have been brought down by their failure to maintain proper financial records. Whether you like it or not bookkeeping is very essential in a business. Bookkeeping Services for Small Business

A proper bookkeeping system is essential to any business whether big or small in order to manage its daily functions and keeps the business running successfully. For any successful business, the main obligation is to maximize profits, minimize any loss and at the same time maintain its position as a responsible entity within the society. A business that does not have a proper bookkeeping system is like a blind folded driver who can easily cause an accident.  Foreign Investment Approvals

1. Better financial analysis and management

Cash flow management is one of the most important things to focus. Regardless if you are busy or not, once invoices are delayed, no follow-ups on customer payments and falling out on supplier’s list of customers will eventually crash you down. Bookkeeping can systematize it up from up-to-date follow-ups, invoicing and on-time payment for suppliers.

2. Fulfillment of Tax Obligations

Bookkeeping keeps track on any information and documents in order to accomplish annual taxes. You don’t have to rush anymore to find all those bills or try remembering expenses when tax time comes. Tax returns are also made easier with an organized Balance Sheet, Cash Flow and Profit & Loss, your tax advisor will devote time in giving you sound tax advice instead of correcting entries in the financial statements.

3. Reporting to Investors is Easy

The process of reporting to your investors on crucial information about the financial status of the company is no longer a worry. From charts, graphs to lists of data presented to the investors are all acquired from the book of account.

4. Business Planning is Easy

What you need is only the Balance Sheet and Profit & Loss to check if the company is on the right track financially, from there you can start your business planning so much easy.

5. Proper Record Keeping as Required by Law

Bookkeeping keeps record keeping properly organized from small to big big/invoice. It makes retrieving process easy once audit time comes

To achieve all these, you can hire a bookkeeper or accountant to do it and keep your financial aspect intact and organized. Bookkeeping can spell the difference between success and bankruptcy and can also literally mean thousands of dollars for your business. Tax Advisor in India

5 Ways To Get Better Credit

A number of different factors affect your credit score, the best thing to do to improve it is, well, everything you can. Even if you decrease your credit card debt by just 10%, you will likely see an improvement in your scores by the next month. Accounting outsourcingcompanies in India

 
1) Check your credit report for errors.

Depending on which study or article you read, 50­-80% of credit reports contain an error. A single error can lower your score anywhere from 5­50 points. Yikes.

I had a delinquent mark on my credit report because we made a late payment on an Old Navy credit card. We thought we had paid the balance in full and canceled the card, and the card issuer never mailed us a statement. I didn’t find out about an outstanding $47 charge until I opened the Credit Karma iPhone app one day.

Check your credit report for errors, and see that mistakes and inaccuracies are removed. You’ll be glad you did. Accounting outsourcingservices in Delhi

2) Tell your side of the story.

Let’s say you that you deserve the derogatory marks on your credit report. You lost your job, ran out of money, and stopped paying the minimum on your credit card.

Go ahead and write the creditor. Ask for a goodwill adjustment. Be honest. Cite the extenuating circumstances and explain that you were a decent customer before you lost your job. A goodwill adjustment will, in effect, erase those debts or any account sent to a collection agency, and the associated mark on your report.

If your debt is still outstanding, and you’re now in a position to pay it, write the creditor a letter and agree to pay your balance if the creditor will report the account as “paid as agreed.” Be sure to ask for any such agreements in writing.

3) Keep your oldest cards open.

  The first thing that some people do when they want to get a handle on their finances is consolidate and simplify. They start canceling accounts left and right: “See… we’re cleaning up the house. Aren’t we doing good?”

Age is an important factor in your credit score. Keeping old accounts open, especially if they don’t carry an annual fee, increases the average age of each account. When card issuers review my credit history, they see 100% in on­time payments (thanks to the technique above), stretching back to 2002. I seem very creditworthy.

4) Become an authorized user. 

If you’ve got crappy credit, then ask a relative or friend to add you as an authorize user on her account.

By hitching your wagon to a Clydesdale, you can improve your score faster. If your friend is worried about how your, ahem, previously bad habits will affect her balance and credit, then offer to put some safeguards in place. For example, maybe she never gives you the card. Or maybe the two of you write out an agreement that limits your activity on the card.

5) Increase your credit limit. 

Take a look at the credit cards you already have. Which one has the longest and “cleanest” history? Call the number on the back of the card. Get an account rep on the line. Ask for a credit line increase. Explain that you really appreciate the bank’s excellent products, and you’ve been a customer in good standing for X number of years. You have used credit responsibly, and you’d appreciate a credit line increase.

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By increasing your total available credit, you can decrease your credit utilization rate. Lowering your credit utilization will raise your score.

A word of caution: a credit line increase can add a new hard inquiry to your credit report.

You’ll have to ask the rep you get on the line. That being said, the long­term benefit to your credit utilization rate may outweigh a short­term dip in your credit score.

Why Auditing is Necessity

Auditing

An audit is more than a formality, it is a necessity to protect your business and encourage it to thrive. Early warnings, open communication and pragmatic resolution of issues are the essential features.

Audit testing procedures tailored to the specific audit, our firms maintain excellent relationships with their clients. This quality-led approach means members provide an intelligent, constructive and challenging audit to every one.

Auditing Services in Delhi

• Statutory Audits : It is a legally required review of the accuracy of a company's or governments financial records. The purpose of a statutory audit is the same as the purpose of any other audit - to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, book keeping records and financial transactions of both Public and Private Companies, Banks, Financial Institutions, PSU's, firms and Sole-Proprietors.
• Internal Audit : Focus is to ensure strong internal control systems to minimize the risk of accidental or deliberate errors and omissions. Safeguarding of assets, adequate division of authority over key control areas and compliance with internal operating policies and guidelines are other focus areas.
• Tax Audit : To prepare report in Form 3CA/3CB including annexure in Form 3CD as per div 44AB of the Income-Tax Act. We'll help with your IRS tax audit by:
  • Reviewing the tax authority notice or inquiry and explain what it means
  • Researching issues involved
  • Assisting you in assembling documents and records for the tax audit
  • Reviewing the tax audit findings and explaining them to you
  • Explaining the appeal process and other options available to you in the event you disagree with the tax authority's findings

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• Process / Transaction Audit : A process audit is an examination of results to determine whether the activities, resources and behaviors that cause them are being managed efficiently and effectively.
• Management Audit : To assess the systems, methods and policies followed by an entity's management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement.
• Stock Audit: : It is carried out on behalf of banks and financial institutions. The objective is to ensure that the security against which funds are lent by the bank is safe and valued correctly.
• Due Diligence : We assist clients in conducting financial, legal and accounting reviews in case of mergers, acquisitions and investments. A sound understanding of local laws, regulations and accounting practices enables us to vet all critical issues in detail.
• Forensic / Risk Audit : Our forensic audit focuses on high risk areas and helps you strengthen your internal controls.Chartered accountant in Delhi

What is it : Forensic audit techniques seek to uncover corporate or other organization fraud. Results emanating from a forensic audit are typically used to support both civil litigation and criminal prosecutions. Forensic audit techniques can be broken down into five basic categories. 

Testing Defences : Most businesses and other organizations have procedures and defences set up to prevent the occurrence of fraud. A good initial forensic audit technique is to attempt to circumvent these defences yourself. The weaknesses you find within the organization's controls will most probably guide you down the same path taken by suspected perpetrators. This technique requires you to attempt to put yourself in the shoes and think like your suspect.

Trend Analysis : Businesses have cycles and seasons much akin to nature itself. An expense or event within a business that would be analogous to a snowy day in the middle of summer is worth investigating. Careful review of your subject organization's historical norms is necessary in order for you to be able to discern the outlier event should it arise within your investigation.

Digital Forensic Examinations : Every transaction leaves a digital footprint in today's computer-driven society. Close scrutiny of relevant emails, accounting records, phone logs and target hard drives is a requisite facet of any modern forensic audit. Digital investigations can become quite complex and require support from trained digital investigators. However, many open-source digital forensics tools are now available to assist you in this phase of the investigation. 

Face to Face Interviews : Forensic auditing is akin to detective work, and every good detective desires to look his witnesses and suspects in the eye. Personal interviews with the staff of your target entity yield a better understanding of its operations and of the culture that exists within it. According to John J. Hall of the Journal of Accountancy, critical information can be gleaned from interviews with parties who have knowledge of the events without being directly connected to the fraud. 

Full Financial Auditing : Detailed financial audits can be complex and most often require the assistance of a qualified forensic accountant. Basic financial audit techniques include bank statement reconciliations, scrutiny of all vendor contracts and payments, review of tax returns and analysis of public filings. Financial forensic audit techniques seek to identify suspicious transactions and trace them back to potential perpetrators.

How we can help

• Gather and analyze evidence
• Integrate interview information with queries from databases, emails, and hard drives
• Report our findings, review internal controls, and provide remediation options
• Expert testimony

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Internal Audit : The scope of the audit is defined as per the internal controls and is carried out with specific emphasis on cost control. The main purpose of an internal control audit system is to ensure no mistakes, omission or accidental or deliberate errors. Our team is well trained in safeguarding of assets and operating with internal guidelines and policies to ensure smooth procedures.

Corporate Governance: A New Start for Corporates

Meaning of Corporate Governance:

•     The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially takes care of the interests of all the stakeholders in a company i.e. its shareholders, management, customers, suppliers, financers, government and the community.

•     Corporate governance broadly refers to the mechanisms, processes and relations by which corporations are controlled and directed to achieve their goals with legal compliance and social help.

•     Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and suggests the policies for making decisions in corporate actions.

•     Corporate governance includes the processes by which corporations’ objectives are set and achieved within compliance of the social & regulatory environment.

Background/ Need for Corporate Governance:

•     In India, most companies are family-owned and/or closely held. Hence, the corporate governance framework in India should emphasize monitoring/regulating connected transactions involving controlling shareholders (so called “promoters”) and related entities.

•     In the wake of the Satyam fraud — in which the company chairman admitted in 2009 that the company’s accounts had been falsified, to the tune of some USD 1.5 billion, the need for reviewing India’s corporate governance framework came to the forefront. There was only technical compliance in that case, and decisions were taken without regard to the rationale underlying relevant accounting principles or whether the transactions made business sense. The Satyam case highlighted inadequacies in the existing legal provisions designed to prevent abusive Relate Party Transactions in India.

•     The Securities and Exchange Board of India Committee on Corporate Governance defines corporate governance as the “acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal & corporate funds in the management of a company.

Control, Ownership and Board Responsibilities:

•     Family interests dominate ownership and control structures of some corporations and the focus on family controlled corporations should be more than on corporations “controlled” by institutional investors or in which public held share capital.

•     The board is responsible for the successful continuation of the corporation. Board of directors are expected to play a key role in corporate governance.

•     The board has responsibility for: CEO selection and succession; providing suggestion to management on the strategy; compensating senior executives; monitoring financial health and performance; and ensuring accountability of the organization to its investors and authorities.

•     Corporate governance mechanisms and controls are designed to reduce the inefficiencies in day to day operations and decision of board. There are both internal monitoring systems and external monitoring systems.

Internal Corporate Governance Controls:

•     Monitoring by the board of directors:- Regular board meetings allow potential problems to be identified, discussed and avoided.

•     Internal control procedures and internal auditors:-  Internal control procedures are policies implemented by an entity’s board of directors, audit committee, management, and other personnel to provide reasonable assurance of the entity in achieving its objectives related to reliable financial reporting, operating efficiency, and compliance with laws and regulations.

•     Balance of power:- The President should be a different person from the Treasurer. This application of separation of power is further developed in companies where separate divisions check and balance each other’s actions.

•   Remuneration:- Performance based remuneration is designed to relate some proportion of salary to individual performance.

•     Monitoring by large shareholders and/or monitoring by banks and other large creditors

External Corporate Governance Controls:

External corporate governance controls encompass the controls external stakeholders exercise over the organization. Examples include:

•     Competition
•     Debt Covenants
•     Financial Statements
•     Government Regulations
•     Managerial Labour Market
•     Media Pressure
•     Takeovers

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Business Process Outsourcing

Whatever you business is, we will simplify and streamline your business processes, so that you can focus on your core competencies.

In today's business world it becomes quite a challenge for business enterprises to carry out all their audits,accounts and finance management on their own. Hence, this is where we step in. As chartered accountants, we help small and medium enterprises or large companies manage their finance, accounts, taxation and payroll processing and help them make best use of their resources. We are customized service providers which help you excel.

Payroll Outsourcing : Payroll Outsourcing primarily helps companies file tax returns on time, easing the pressure of work, reducing the load and help them get more efficient with their core business. Ajsh simplify your complexities and offer highly comprehensive and best payroll processing services.

Accounts Outsourcing : Ajsh key focus areas are providing transformational value to our clients through process excellence-automation, re-engineering and internal/external benchmarking and variable pricing models.

Knowledge Process Outsourcing : Ajsh support organizations looking for innovative solutions and services to achieve operational competitiveness. Backed by an integrated IT-KPO approach, we focus on deliveringtransformational value to our clients, beyond managing SLAs.

Legal Process Outsourcing : Legal process outsourcing is quite a long procedure. It involves various processes like research, analytics, drafting, paralegal services, intellectual property rights, patents and legal research AJSH & Co LLP. pledge to provide the most efficient, effective and economic legal support. We have clients all over the globe whom we help make a mark in the competitive global world.