Planning For A Start-up?

By Author: Devang Master
Total Articles: 3
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Things to remember for a start-up

If you can think about it, you can do it. Sounds like a really good inspiration for all those entrepreneurs looking to establish a start-up. But a start-up is not just about having a concept and then going forth with gusto. It is also about filling a number of requirements which more often than not involve quite many documents. Read on to find out the most necessary things required to go forth with a start-up.

Registering the company

Although the legal terminology makes it seem like that the registration of a business is a tussle, in reality it is not long of a procedure. As a start-up, you first need to keep in mind the INC-29 introduced by the Ministry of Corporate Affairs. This new form combines the procedure of getting a Director Identification Number, Name Approval Application and Incorporation Application in one single step.

Taxation requirements

The first thing that a start-up enthusiast needs to know is that to encourage the Make in India initiative, the government of India has provided taxation relaxations to start-ups. These relaxations are ...
... provided for three years under Section 80I of the Income Tax Act, 1961. Moreover the benefits will be provided to start-ups incorporated after April 1st, 2016.

In order to establish itself, a start-up needs to obtain two certificates , one for eligible start-ups and the other for tax benefits of eligible businesses. Start-ups which are formed as private limited companies, LLPs’, one person company and registered partnerships are eligible for the taxation benefits.

A start-up can earn a certificate through an online application, along with a recommendation from an incubator or letter of funding of not less than 20% through an angel investor.

The profits of eligible start-ups , which have an annual turnover of about Rs.50 crores, can avail a tax holiday. But these profits are subjected to MAT of less than 25%.

Compliance requirements

The credibility of a start-up depends on its compliances with all the applicable laws. For a company and LLP, the compliances of Registrar of Companies are mandatory. A few of the most important provisions include appointment of auditor, conducting board, shareholder’s meetings, filing statutory annual returns and maintenance of statutory registers.

Appointment of auditor
The auditor of the company needs to be appointed within one month of its incorporation and needs to hold office till the conclusion of the first general meeting

Conducting board meetings
One meeting needs to be conducted in every three calendar months

Filing financial and other returns
Private limited companies are required to maintain various statutory registers and records as required by the Company Law. Minutes of the meetings like that of Board meetings are also required to be maintained by the company

Audit compliances
A statutory audit determines whether an organization provides a fair and accurate representation of its financial position and transactions

Payroll compliances
A start-up cannot work without employees and they need to be governed by various labor regulations

For someone looking to make their mark in the market with a start-up, forming one seems like a frustrating task. Making the whole process easier for you is Filingenie. We understand all your requirements and provide you with the easiest and best of the routes available. All you need to do is register with us. For more information, visit our website.