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accounting (35)

Friday, 31 March 2017 13:14

Company Law Services

Maitreya Patni

Foreign Company Incorporation & Company Law Services
We are a well recognized chartered accountant firm, providing consultations and services in Company Law Matters. Our services are customized in accordance to your specific requirements. We assist you from the very initial processes of company establishment to company maintenance process, etc. Our services include:

  • Formation & Registration of Company
  • Setting up a Liaison Office
  • Setting up a Branch Office
  • Setting up a 100% Subsidiary Company
  • Setting up a Project Office
  • E- Filing of Documents with MCA.
  • Compliance under Companies Act, 2013
  • Getting the Company name changed.
  • Formation of Section 25 Company (Non profit making organization)
  • Getting Charge Registered
  • Liaison with Registrar of Companies & Regional Directors
  • Getting Director Identification Number (DIN)
  • Maintenance of statutory records prescribed under Companies Act, 2013.
  • Winding up proceedings of companies, trusts and societies
  • Getting public & private limited companies declared defunct

Merger & Acquisition

Our merger & acquisition team consists of tax, accounting and consulting professionals who provide corporate and private equity buyers with a broad range of accounting, tax and business advisory services to support mergers, business acquisitions, investment and financing structures, disposition alternatives and post-transaction activities.

Our team of advisers has in-depth knowledge and represents clients of different sizes in a variety of industries. Each adviser is committed to serving our clients professionally, confidentially and honestly to enable our clients to maximize their business opportunities.

Whether our clients are planning to buy or merge with another business (joint venture), we have the experience and the expertise to meet their specific requirements. The business acquisition services provide total solutions. Some of the procedures include identification of potential acquisitions, negotiations with the commercial elements of the transaction and forecasting the future of the business. Services offered under the above categories are:

  • A review of goals and objectives
  • Due diligence
  • Business forecasting
  • Advice on potential pitfalls and rewards involved in a merger
  • Assistance in purchase negotiations
  • Advice on financing
  • Assistance with preparation of a business plan
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Friday, 31 March 2017 13:07

OUTSOURCING & STATUTORY COMPLIANCES

Maitreya Patni

We are one of the leading names in the field of offering service support for handling ‘Outsourcing Facilities.’ Here, our team of experts effectively handles Business Process Outsourcing services that are based on listening to our clients needs as well as developing innovative ways towards meeting their needs. Working closely with management, we assist clients in reaching their goals.

We provide financial services for quick and hassle free working. We deal with banks, investment banks, insurance companies, credit rating companies and stock brokers on behalf of our clients and assist them to expend their business and operate it carefully.

Some of the key factors that aid us in successfully supporting the Outsourcing of a Business Process include:

  • Thoroughly analysis of process so clients know the involved costs and can determine cost savings of outsourcing over specific time period
  • Defining roles & responsibilities in outsourcing partnership to ensure there are no surprises and goals & expectations are clear to both parties
  • Establish measurable performance objectives including speed of transactions, time period to close books and others with establishment of performance incentives including rewards and penalties for meeting those objectives
  • Developing detailed transition plan for ensuring smooth hand-off where outsourcing is major undertaking benefitting from careful advanced planning
  • Establishing clear dispute-resolution process for handling issues as they arise, thus making for smoother operations and ensuring there is no contractual or legal problem
  • Monitoring results for bringing continuous improvements thorough arranging long-term contracts on yearly renewal basis that allows annual review of outsourcer’s performance

Our range of services include:

  • Maintenance of accounting and book-keeping records
  • Payroll management services & Pay-roll records
  • Management Information Systems (MIS) reporting and statutory compliances including income tax, tax deducting at source (TDS), withholding tax, service tax, company law, RBI rules & regulations and secretarial compliance on regular basis

Outsource Bookkeeping Services to A.Chandak & Co.
For small or medium businesses marinating up-to-date bookkeeping is probably the most important part of the daily routine. The establishment of an accounting division, hiring and training bookkeeping personnel and buying bookkeeping software is costly.

Such companies, whose core competency is not bookkeeping, can benefit by outsourcing to A.Chandak & Co. Outsourcing bookkeeping services to A.Chandak & Co. will eliminate the need to have an accounting division while at the same time your organization can get access to professional bookkeeping services at just 40%-50% of the cost. A.Chandak & Co. has an impeccable record of delivering remote bookkeeping services to growing and changing businesses in all industries. A.Chandak & Co.’s outsourcing services are focused at helping customers with the accounting requirements and significantly reducing the operating costs of their finance department.

Why outsource bookkeeping services to A.Chandak & Co.?
By choosing A.Chandak & Co. as your bookkeeping outsourcing partner, you can get access to several benefits such as:

  • Save upto 50% on bookkeeping expenses
  • Save upto 50% on bookkeeping expenses
  • Focus more on your business
  • Get access to complete financial management from bookkeeping to tax returns
  • Hire a dedicated online bookkeeper with complete loyalty
  • Round-the-clock access to accounts
  • No need to hire/train accountants
  • Realtime online bookkeeping
  • Complete confidentiality and data security with the latest encryption technologies, remote servers and physical security systems

Our financial and accounting outsource team have the depth and breadth to understand, analyze, and provide critical solutions to all your accounting and financial issues. By using our accounting and financial outsource solutions you can save 30-50% of your total cost and can improve your overall operational efficiency of your entire accounting processes.

Outsourcing has transformed the whole industry. Globalization and modern economic policies of developed countries have also boosted the whole process of outsourcing. Now the cheap and best resources of one country are used by other countries where the cost of similar work is higher in comparison. By this way both the companies are benefitted equally, one will get the best price according to its resources and other will get the work done within time and cost limits.

The key to Outsourcing, however, is finding a right outsourcing partner who can be trusted for the entire process of work. We believes in high quality and cost effective solutions to clients. We have been involved in handling outsourcing business from long time. We have adequate infrastructure, functional experience, flexibility and scalability to cater our foreign and domestic clients.

Outsource Payroll processing to A.Chandak & Co.
At A.Chandak & Co., we make sure that there is timely payment in your organization keeping in mind your compensation policies. Apart from this our unique features in providing payroll services are:

  • At A.Chandak & Co., we make sure that there is timely payment in your organization keeping in mind your compensation policies. Apart from this our unique features in providing payroll services are:
  • We systemize and simplify the process of payrolls. Set up cost is reduced significantly and also the processing time and error.
  • Experts ensure accuracy and efficiency in carrying out the functions.
  • We also reconcile the errors while maintaining calculations and thus maintaining accuracy.
  • We manage calculations of multiple groups of employees satisfying every organizations specific need.
  • Systematized and sophisticated software is used to have error free and accurate calculations. The information for tax filling is also provided in time.
  • Perfect confidentiality is maintained. The company accounts, reports, finances etc, all information regarding these are treated as private and confidential.

We give you the entire gamut of services from time and attendance system, employees insurance deductions, reporting and filing to direct statutory deposit payments.

Outsource Statutory Compliances to A.Chandak & Co.
Once a business is registered, some expert services are required to comply with day to day statutory and regulatory compliances. A.Chandak & Co.’s team is expert enough to take care of following statutory compliances of your organisation.

  • Income Tax Compliance Service
  • Withholding Tax Compliance Service
  • Filing of Annual Return with Registrar of Companies
  • Filing of forms with Registrar of Companies for intimating any changes in director/ address.
  • VAT Compliance like monthly return, annual return etc
  • Service Tax Compliance Service
  • Customs & Central Excise Compliance Service
  • Provident Fund Compliance Service
  • ESI Compliance Service
  • Profession Tax Compliance Service
  • Industry specific regulatory Compliance Service
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Friday, 31 March 2017 12:53

SERVICES TO MNC NRI & FOREIGN NATIONAL

Maitreya Patni

We facilitate multinational organizations in exploring opportunities and setting up business also assists them in complying with legal formalities applicable in India. We brief them taxation system and allied procedures relating to the business which they are planning to set up.

This includes feasibility studies, obtaining statutory approvals from government departments, accounting services, human resource procurement, legal services and other services listed below:

Highlights of our services:

  • Setting up accounting systems, internal controls, procedures and accounting manuals
  • Guidance on registration with the Software Technology Park of India for 100% export oriented software companies & with the Customs & Central Excise Departments regarding custom bonding of STP/EOU units
  • Assistance in obtaining IEC code and guidance on import/export policies and procedures
  • Financial & management restructuring of overseas corporate and joint venture collaborations
  • Incorporation of companies and offices for multinational clients in India
  • Managing back office operations covering accounting and statutory compliances
  • Statutory approvals from Government of India
  • Financial restructuring of overseas companies
  • Joint venture collaborations
  • Vetting of commercial agreements
  • Internal audit & Stock Audit
  • Transfer Pricing, determining arm length pricing for transaction between sister concern in accordance with Transfer Pricing rules and regulations.

Forming Legal entity in India

How one can enter in Indian Market
One can enter the Indian market in more ways than one. These are:

1. Liaison Office

A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate.

A liaison Office is not permitted to undertake any commercial / trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels.

Activities Permitted:

  • Representing in India the parent Company / group Companies
  • Promoting export/ import from/ to India
  • Promoting technical / financial collaborations between the parent / group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies

Approval / Incorporation

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof. In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.
  • In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Suitability of a Liaison Office

The liaison office generally acts as a communication channel between the parent company overseas and its present or prospective customers in India. The liaison office can also be set up to establish business contacts or gather market intelligence to promote the products or services of the overseas parent company. The liaison Office cannot undertake any business activity in India nor earn any income in India. The liaison Office has to meet its entire expenses from funds received from the parent company through normal banking channels. At the time of closure of the liaison Office, the RBI grants permission to repatriate the balance in the Indian bank account to the parent company. Since the liaison Office is not permitted to earn any income, it should not constitute a taxable entity in India. However, the liaison Office would be required to withhold tax from certain payments and hence to comply with the requisite tax withholding requirements under the domestic tax law.

2. Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office.

Activities Permitted:

As per the guidelines laid down by the RBI, the Branch Office in India is allowed to carry on only the following activities:

  • Export / Import of goods
  • Rendering professional or consultancy services
  • Carrying out research work, in which the parent company is engaged
  • Promoting technical or financial collaboration between Indian companies and parent or overseas group companies
  • Representing the parent company in India and acting as buying / selling agent in India
  • Rendering services in Information Technology and development of software in India
  • Rendering technical support to the products supplied by parent / group companies

Approval / Incorporation
Foreign companies intending to open a Branch Office in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India.

In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Branch Office is considered a part of the foreign company and is not treated as a separate legal entity.
  • The office can undertake trading activities, but not manufacturing.
  • It is subject to taxation in India at 42.23% on income accrued in India.
  • If there is a double taxation agreement with the country in which the foreign company is incorporated, the tax paid in India can be set off against the total tax payable by the parent company abroad.
  • Branch offices may repatriate profits to their Head Office without obtaining prior approval.
  • The Branch Office would not expand its activities or undertake any new trading, commercial or industrial activity other than that is expressly approved by the RBI.
  • The entire expenses of the Branch Office in India will be met either out of the funds received from abroad through normal banking channels or through income generated by it in India.
  • The Branch Office will not accept any deposits in India.

Repatriation of Profits

A Branch Office can remit the profits (net of any withholding tax) generated out of its operations in India on production of the prescribed documents, and on establishing that it has earned a net profit by undertaking the permitted activities. The Branch Office need not retain any profits as reserves in India.

3. 100% Owned subsidiary

  • Form a Company and the parent Company will hold 100% of Shares in the Company.
    • The Company can take up any business in India.
    • NO RBI permission.
    • Will be treated as Domestic Company
  • Tax Rate Slab will be 30%

Approval / Incorporation

The Company is required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

  • Can be independently promoted by Parent Company
  • Can be promoted by any two people in India and then the holding of this person can be purchased by the Parent Company. (If this is the case, intimation about the transfer of share is required to be informed to Reserve Bank of India).

Typical Points about 100% Subsidiary

  • The profit earned in India can only be taken away by parent Company in the form of dividend after payment of dividend tax.
  • No easy exit.
  • Transfer pricing issues if purchases made from sister concern.

4. Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

5. Joint Venture, With An Indian Partner

Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations
  • Established distribution/ marketing set up of the Indian partner
  • Available financial resource of the Indian partners

6. Foreign Direct Investment (FDI)

India's foreign trade policies have been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories - Investment under automatic route and investment through prior approval of Government.

Procedure under automatic route
FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure under Government approval
FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.

7. Investment by way of Share Acquisition

A foreign investing company is entitled to acquire the shares of an Indian company without obtaining any prior permission of the FIPB subject to prescribed parameters/ guidelines. If the acquisition of shares directly or indirectly results in the acquisition of a company listed on the stock exchange, it would require the approval of the Security Exchange Board of India.

Bank Account Opening

Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided.

Tell us the preference of Bank you want to have bank account with and we will get back to you with complete information.

Getting government approval for foreign direct investments (FDI) / FIPB Approvals.

FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.

Getting Reserve Bank of India (RBI), the apex banking body of India Approvals.

Any foreign company intending to open a liaison Office or a Branch Office or a Project Office in India is required to obtain prior approval from the RBI and any subsidiary company incorporated by foreign company or any foreign direct investment are required to be reported to RBI in form FCGPR.

Registration with Various Authorities

In India a Business Setup to become fully functional require to register with various tax, labour and other authorities. For eg. a manufacturing set up is required to obtain excise registration, trading setup is required to get registered with Sales Tax / VAT Authorities and an service oriented industry is required to register with Service Tax Authorities and obtain STC code whereas all set-up are required to obtain Income Tax Registration (PAN).

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Friday, 31 March 2017 12:40

Corporate Advisory Services

Maitreya Patni

A.Chandak & Co.’s Corporate Advisory Service provides the intelligence you need to incorporate the latest developments in industry trends, best practices, supply chain management, asset and product lifecycle management, production management and plant automation. A.Chandak & Co.’s Corporate Advisory Service delivers the strategic information you need to assess change, and provides an extension to your staff for help with your unique needs. You will have the knowledge needed to move down the learning curve and improve operational performance. Our corporate advisory solutions range from providing project advisory services to start up projects (both green field and brown field) to providing Mergers & Acquisition advisory, financial structuring services, refinancing, hedging and risk management services

Forming Legal entity in India

How one can enter in Indian Market
One can enter the Indian market in more ways than one. These are:

1. Liaison Office

A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate.

A liaison Office is not permitted to undertake any commercial / trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels.

Activities Permitted:

  • Representing in India the parent Company / group Companies
  • Promoting export/ import from/ to India
  • Promoting technical / financial collaborations between the parent / group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies

Approval / Incorporation

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof. In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.
  • In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Suitability of a Liaison Office

The liaison office generally acts as a communication channel between the parent company overseas and its present or prospective customers in India. The liaison office can also be set up to establish business contacts or gather market intelligence to promote the products or services of the overseas parent company. The liaison Office cannot undertake any business activity in India nor earn any income in India. The liaison Office has to meet its entire expenses from funds received from the parent company through normal banking channels. At the time of closure of the liaison Office, the RBI grants permission to repatriate the balance in the Indian bank account to the parent company. Since the liaison Office is not permitted to earn any income, it should not constitute a taxable entity in India. However, the liaison Office would be required to withhold tax from certain payments and hence to comply with the requisite tax withholding requirements under the domestic tax law.

2. Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office.

Activities Permitted:

As per the guidelines laid down by the RBI, the Branch Office in India is allowed to carry on only the following activities:

  • Export / Import of goods
  • Rendering professional or consultancy services
  • Carrying out research work, in which the parent company is engaged
  • Promoting technical or financial collaboration between Indian companies and parent or overseas group companies
  • Representing the parent company in India and acting as buying / selling agent in India
  • Rendering services in Information Technology and development of software in India
  • Rendering technical support to the products supplied by parent / group companies

Approval / Incorporation
Foreign companies intending to open a Branch Office in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India.

In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Branch Office is considered a part of the foreign company and is not treated as a separate legal entity.
  • The office can undertake trading activities, but not manufacturing.
  • It is subject to taxation in India at 42.23% on income accrued in India.
  • If there is a double taxation agreement with the country in which the foreign company is incorporated, the tax paid in India can be set off against the total tax payable by the parent company abroad.
  • Branch offices may repatriate profits to their Head Office without obtaining prior approval.
  • The Branch Office would not expand its activities or undertake any new trading, commercial or industrial activity other than that is expressly approved by the RBI.
  • The entire expenses of the Branch Office in India will be met either out of the funds received from abroad through normal banking channels or through income generated by it in India.
  • The Branch Office will not accept any deposits in India.

Repatriation of Profits

A Branch Office can remit the profits (net of any withholding tax) generated out of its operations in India on production of the prescribed documents, and on establishing that it has earned a net profit by undertaking the permitted activities. The Branch Office need not retain any profits as reserves in India.

3. 100% Owned subsidiary

  • Form a Company and the parent Company will hold 100% of Shares in the Company.
    • The Company can take up any business in India.
    • NO RBI permission.
    • Will be treated as Domestic Company
  • Tax Rate Slab will be 30%

Approval / Incorporation

The Company is required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

  • Can be independently promoted by Parent Company
  • Can be promoted by any two people in India and then the holding of this person can be purchased by the Parent Company. (If this is the case, intimation about the transfer of share is required to be informed to Reserve Bank of India).

Typical Points about 100% Subsidiary

  • The profit earned in India can only be taken away by parent Company in the form of dividend after payment of dividend tax.
  • No easy exit.
  • Transfer pricing issues if purchases made from sister concern.

4. Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

5. Joint Venture, With An Indian Partner

Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations
  • Established distribution/ marketing set up of the Indian partner
  • Available financial resource of the Indian partners

6. Foreign Direct Investment (FDI)

India's foreign trade policies have been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories - Investment under automatic route and investment through prior approval of Government.

Procedure under automatic route
FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure under Government approval
FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.

7. Investment by way of Share Acquisition

A foreign investing company is entitled to acquire the shares of an Indian company without obtaining any prior permission of the FIPB subject to prescribed parameters/ guidelines. If the acquisition of shares directly or indirectly results in the acquisition of a company listed on the stock exchange, it would require the approval of the Security Exchange Board of India.

Bank Account Opening

Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided.

Tell us the preference of Bank you want to have bank account with and we will get back to you with complete information.

Getting government approval for foreign direct investments (FDI) / FIPB Approvals.

FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.

Getting Reserve Bank of India (RBI), the apex banking body of India Approvals.

Any foreign company intending to open a liaison Office or a Branch Office or a Project Office in India is required to obtain prior approval from the RBI and any subsidiary company incorporated by foreign company or any foreign direct investment are required to be reported to RBI in form FCGPR.

Registration with Various Authorities

In India a Business Setup to become fully functional require to register with various tax, labour and other authorities. For eg. a manufacturing set up is required to obtain excise registration, trading setup is required to get registered with Sales Tax / VAT Authorities and an service oriented industry is required to register with Service Tax Authorities and obtain STC code whereas all set-up are required to obtain Income Tax Registration (PAN).

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Friday, 31 March 2017 12:16

Management Consultancy

Maitreya Patni

Through this process we are able to develop a customized approach, develop innovative solutions, make recommendations for improvement and offer assistance with, or take full responsibility for the implementation of each activity.

Management Consultancy Services
At A.Chandak & Co. Management Consulting Services is a client service oriented consultancy offering time-tested solutions to your firm's operations, financial and project management systems concerns.

Forming Legal entity in India

How one can enter in Indian Market
One can enter the Indian market in more ways than one. These are:

1. Liaison Office

A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate.

A liaison Office is not permitted to undertake any commercial / trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels.

Activities Permitted:

  • Representing in India the parent Company / group Companies
  • Promoting export/ import from/ to India
  • Promoting technical / financial collaborations between the parent / group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies

Approval / Incorporation

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof. In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.
  • In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Suitability of a Liaison Office

The liaison office generally acts as a communication channel between the parent company overseas and its present or prospective customers in India. The liaison office can also be set up to establish business contacts or gather market intelligence to promote the products or services of the overseas parent company. The liaison Office cannot undertake any business activity in India nor earn any income in India. The liaison Office has to meet its entire expenses from funds received from the parent company through normal banking channels. At the time of closure of the liaison Office, the RBI grants permission to repatriate the balance in the Indian bank account to the parent company. Since the liaison Office is not permitted to earn any income, it should not constitute a taxable entity in India. However, the liaison Office would be required to withhold tax from certain payments and hence to comply with the requisite tax withholding requirements under the domestic tax law.

2. Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office.

Activities Permitted:

As per the guidelines laid down by the RBI, the Branch Office in India is allowed to carry on only the following activities:

  • Export / Import of goods
  • Rendering professional or consultancy services
  • Carrying out research work, in which the parent company is engaged
  • Promoting technical or financial collaboration between Indian companies and parent or overseas group companies
  • Representing the parent company in India and acting as buying / selling agent in India
  • Rendering services in Information Technology and development of software in India
  • Rendering technical support to the products supplied by parent / group companies

Approval / Incorporation
Foreign companies intending to open a Branch Office in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India.

In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Branch Office is considered a part of the foreign company and is not treated as a separate legal entity.
  • The office can undertake trading activities, but not manufacturing.
  • It is subject to taxation in India at 42.23% on income accrued in India.
  • If there is a double taxation agreement with the country in which the foreign company is incorporated, the tax paid in India can be set off against the total tax payable by the parent company abroad.
  • Branch offices may repatriate profits to their Head Office without obtaining prior approval.
  • The Branch Office would not expand its activities or undertake any new trading, commercial or industrial activity other than that is expressly approved by the RBI.
  • The entire expenses of the Branch Office in India will be met either out of the funds received from abroad through normal banking channels or through income generated by it in India.
  • The Branch Office will not accept any deposits in India.

Repatriation of Profits

A Branch Office can remit the profits (net of any withholding tax) generated out of its operations in India on production of the prescribed documents, and on establishing that it has earned a net profit by undertaking the permitted activities. The Branch Office need not retain any profits as reserves in India.

3. 100% Owned subsidiary

  • Form a Company and the parent Company will hold 100% of Shares in the Company.
    • The Company can take up any business in India.
    • NO RBI permission.
    • Will be treated as Domestic Company
  • Tax Rate Slab will be 30%

Approval / Incorporation

The Company is required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

  • Can be independently promoted by Parent Company
  • Can be promoted by any two people in India and then the holding of this person can be purchased by the Parent Company. (If this is the case, intimation about the transfer of share is required to be informed to Reserve Bank of India).

Typical Points about 100% Subsidiary

  • The profit earned in India can only be taken away by parent Company in the form of dividend after payment of dividend tax.
  • No easy exit.
  • Transfer pricing issues if purchases made from sister concern.

4. Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

5. Joint Venture, With An Indian Partner

Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations
  • Established distribution/ marketing set up of the Indian partner
  • Available financial resource of the Indian partners

6. Foreign Direct Investment (FDI)

India's foreign trade policies have been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories - Investment under automatic route and investment through prior approval of Government.

Procedure under automatic route
FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure under Government approval
FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.

7. Investment by way of Share Acquisition

A foreign investing company is entitled to acquire the shares of an Indian company without obtaining any prior permission of the FIPB subject to prescribed parameters/ guidelines. If the acquisition of shares directly or indirectly results in the acquisition of a company listed on the stock exchange, it would require the approval of the Security Exchange Board of India.

Bank Account Opening

Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided.

Tell us the preference of Bank you want to have bank account with and we will get back to you with complete information.

Getting government approval for foreign direct investments (FDI) / FIPB Approvals.

FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.

Getting Reserve Bank of India (RBI), the apex banking body of India Approvals.

Any foreign company intending to open a liaison Office or a Branch Office or a Project Office in India is required to obtain prior approval from the RBI and any subsidiary company incorporated by foreign company or any foreign direct investment are required to be reported to RBI in form FCGPR.

Registration with Various Authorities

In India a Business Setup to become fully functional require to register with various tax, labour and other authorities. For eg. a manufacturing set up is required to obtain excise registration, trading setup is required to get registered with Sales Tax / VAT Authorities and an service oriented industry is required to register with Service Tax Authorities and obtain STC code whereas all set-up are required to obtain Income Tax Registration (PAN).

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Friday, 31 March 2017 12:02

Auditing Services

Maitreya Patni

we offer tailor-made accounting systems. In the modern jet age there is fierce competition in the trade and industry. Entrepreneurs are vying with one another in competitive edge to stay ahead of others. This being the business scenario it is most imperative for the CEOS and other junior staff to keep them fully updated with the statistics of the working of a business house and its current affairs required for planning and formulations of policies of the Company.

This can only be possible if the accounts are maintained in an elaborate manner and kept up to date minute to minute. We at A. Chandak & Co. keep the most competent and efficient staff to meet with this important requirement of our clients and readily furnish every data and information as and when required. This is our specialty, time is the essence of business and we are fully seized of this secret of success.

Whether it is a full service accounting and book-keeping plan or quarterly updates and financial statement preparation, we provide accurate and timely services that include:

  • Book-keeping.
  • Payroll reconciliation.
  • Partnership accounting.
  • Account reconciliation.
  • Accounts receivable/Payable reconciliation.
  • Capital planning and Investment management.
  • Separate currency and Investment gain/loss accounting.
  • Daily on line access and timely reporting via internet (in PDF or Excel format)
  • Preparation of management accounts and statutory accounts.
  • Data Entry/Comparison of data from hard copy to soft copy & vice versa.

Forming Legal entity in India

How one can enter in Indian Market
One can enter the Indian market in more ways than one. These are:

1. Liaison Office

A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate.

A liaison Office is not permitted to undertake any commercial / trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels.

Activities Permitted:

  • Representing in India the parent Company / group Companies
  • Promoting export/ import from/ to India
  • Promoting technical / financial collaborations between the parent / group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies

Approval / Incorporation

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof. In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.
  • In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Suitability of a Liaison Office

The liaison office generally acts as a communication channel between the parent company overseas and its present or prospective customers in India. The liaison office can also be set up to establish business contacts or gather market intelligence to promote the products or services of the overseas parent company. The liaison Office cannot undertake any business activity in India nor earn any income in India. The liaison Office has to meet its entire expenses from funds received from the parent company through normal banking channels. At the time of closure of the liaison Office, the RBI grants permission to repatriate the balance in the Indian bank account to the parent company. Since the liaison Office is not permitted to earn any income, it should not constitute a taxable entity in India. However, the liaison Office would be required to withhold tax from certain payments and hence to comply with the requisite tax withholding requirements under the domestic tax law.

2. Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office.

Activities Permitted:

As per the guidelines laid down by the RBI, the Branch Office in India is allowed to carry on only the following activities:

  • Export / Import of goods
  • Rendering professional or consultancy services
  • Carrying out research work, in which the parent company is engaged
  • Promoting technical or financial collaboration between Indian companies and parent or overseas group companies
  • Representing the parent company in India and acting as buying / selling agent in India
  • Rendering services in Information Technology and development of software in India
  • Rendering technical support to the products supplied by parent / group companies

Approval / Incorporation
Foreign companies intending to open a Branch Office in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India.

In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Branch Office is considered a part of the foreign company and is not treated as a separate legal entity.
  • The office can undertake trading activities, but not manufacturing.
  • It is subject to taxation in India at 42.23% on income accrued in India.
  • If there is a double taxation agreement with the country in which the foreign company is incorporated, the tax paid in India can be set off against the total tax payable by the parent company abroad.
  • Branch offices may repatriate profits to their Head Office without obtaining prior approval.
  • The Branch Office would not expand its activities or undertake any new trading, commercial or industrial activity other than that is expressly approved by the RBI.
  • The entire expenses of the Branch Office in India will be met either out of the funds received from abroad through normal banking channels or through income generated by it in India.
  • The Branch Office will not accept any deposits in India.

Repatriation of Profits

A Branch Office can remit the profits (net of any withholding tax) generated out of its operations in India on production of the prescribed documents, and on establishing that it has earned a net profit by undertaking the permitted activities. The Branch Office need not retain any profits as reserves in India.

3. 100% Owned subsidiary

  • Form a Company and the parent Company will hold 100% of Shares in the Company.
    • The Company can take up any business in India.
    • NO RBI permission.
    • Will be treated as Domestic Company
  • Tax Rate Slab will be 30%

Approval / Incorporation

The Company is required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

  • Can be independently promoted by Parent Company
  • Can be promoted by any two people in India and then the holding of this person can be purchased by the Parent Company. (If this is the case, intimation about the transfer of share is required to be informed to Reserve Bank of India).

Typical Points about 100% Subsidiary

  • The profit earned in India can only be taken away by parent Company in the form of dividend after payment of dividend tax.
  • No easy exit.
  • Transfer pricing issues if purchases made from sister concern.

4. Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

5. Joint Venture, With An Indian Partner

Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations
  • Established distribution/ marketing set up of the Indian partner
  • Available financial resource of the Indian partners

6. Foreign Direct Investment (FDI)

India's foreign trade policies have been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories - Investment under automatic route and investment through prior approval of Government.

Procedure under automatic route
FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure under Government approval
FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.

7. Investment by way of Share Acquisition

A foreign investing company is entitled to acquire the shares of an Indian company without obtaining any prior permission of the FIPB subject to prescribed parameters/ guidelines. If the acquisition of shares directly or indirectly results in the acquisition of a company listed on the stock exchange, it would require the approval of the Security Exchange Board of India.

Bank Account Opening

Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided.

Tell us the preference of Bank you want to have bank account with and we will get back to you with complete information.

Getting government approval for foreign direct investments (FDI) / FIPB Approvals.

FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.

Getting Reserve Bank of India (RBI), the apex banking body of India Approvals.

Any foreign company intending to open a liaison Office or a Branch Office or a Project Office in India is required to obtain prior approval from the RBI and any subsidiary company incorporated by foreign company or any foreign direct investment are required to be reported to RBI in form FCGPR.

Registration with Various Authorities

In India a Business Setup to become fully functional require to register with various tax, labour and other authorities. For eg. a manufacturing set up is required to obtain excise registration, trading setup is required to get registered with Sales Tax / VAT Authorities and an service oriented industry is required to register with Service Tax Authorities and obtain STC code whereas all set-up are required to obtain Income Tax Registration (PAN).

Published in accounting
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Friday, 31 March 2017 11:52

AUDITING SERVICES

Maitreya Patni

When faced with a swiftly changing economic and regulatory landscape, the need for timely, high-quality audits is critical. We approach client’s audit with a deep understanding of their business, the industry in which they operate, the risks that client faces and the latest regulatory laws. Our commitment to delivering high-quality assurance services is at the heart of what we do. We provide comprehensive audit and assurance services designed to deliver real value and underpin investor confidence. Explore the services we offer :

Forming Legal entity in India

How one can enter in Indian Market
One can enter the Indian market in more ways than one. These are:

1. Liaison Office

A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate.

A liaison Office is not permitted to undertake any commercial / trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels.

Activities Permitted:

  • Representing in India the parent Company / group Companies
  • Promoting export/ import from/ to India
  • Promoting technical / financial collaborations between the parent / group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies

Approval / Incorporation

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof. In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.
  • In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Suitability of a Liaison Office

The liaison office generally acts as a communication channel between the parent company overseas and its present or prospective customers in India. The liaison office can also be set up to establish business contacts or gather market intelligence to promote the products or services of the overseas parent company. The liaison Office cannot undertake any business activity in India nor earn any income in India. The liaison Office has to meet its entire expenses from funds received from the parent company through normal banking channels. At the time of closure of the liaison Office, the RBI grants permission to repatriate the balance in the Indian bank account to the parent company. Since the liaison Office is not permitted to earn any income, it should not constitute a taxable entity in India. However, the liaison Office would be required to withhold tax from certain payments and hence to comply with the requisite tax withholding requirements under the domestic tax law.

2. Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office.

Activities Permitted:

As per the guidelines laid down by the RBI, the Branch Office in India is allowed to carry on only the following activities:

  • Export / Import of goods
  • Rendering professional or consultancy services
  • Carrying out research work, in which the parent company is engaged
  • Promoting technical or financial collaboration between Indian companies and parent or overseas group companies
  • Representing the parent company in India and acting as buying / selling agent in India
  • Rendering services in Information Technology and development of software in India
  • Rendering technical support to the products supplied by parent / group companies

Approval / Incorporation
Foreign companies intending to open a Branch Office in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India.

In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Branch Office is considered a part of the foreign company and is not treated as a separate legal entity.
  • The office can undertake trading activities, but not manufacturing.
  • It is subject to taxation in India at 42.23% on income accrued in India.
  • If there is a double taxation agreement with the country in which the foreign company is incorporated, the tax paid in India can be set off against the total tax payable by the parent company abroad.
  • Branch offices may repatriate profits to their Head Office without obtaining prior approval.
  • The Branch Office would not expand its activities or undertake any new trading, commercial or industrial activity other than that is expressly approved by the RBI.
  • The entire expenses of the Branch Office in India will be met either out of the funds received from abroad through normal banking channels or through income generated by it in India.
  • The Branch Office will not accept any deposits in India.

Repatriation of Profits

A Branch Office can remit the profits (net of any withholding tax) generated out of its operations in India on production of the prescribed documents, and on establishing that it has earned a net profit by undertaking the permitted activities. The Branch Office need not retain any profits as reserves in India.

3. 100% Owned subsidiary

  • Form a Company and the parent Company will hold 100% of Shares in the Company.
    • The Company can take up any business in India.
    • NO RBI permission.
    • Will be treated as Domestic Company
  • Tax Rate Slab will be 30%

Approval / Incorporation

The Company is required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

  • Can be independently promoted by Parent Company
  • Can be promoted by any two people in India and then the holding of this person can be purchased by the Parent Company. (If this is the case, intimation about the transfer of share is required to be informed to Reserve Bank of India).

Typical Points about 100% Subsidiary

  • The profit earned in India can only be taken away by parent Company in the form of dividend after payment of dividend tax.
  • No easy exit.
  • Transfer pricing issues if purchases made from sister concern.

4. Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

5. Joint Venture, With An Indian Partner

Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations
  • Established distribution/ marketing set up of the Indian partner
  • Available financial resource of the Indian partners

6. Foreign Direct Investment (FDI)

India's foreign trade policies have been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories - Investment under automatic route and investment through prior approval of Government.

Procedure under automatic route
FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure under Government approval
FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.

7. Investment by way of Share Acquisition

A foreign investing company is entitled to acquire the shares of an Indian company without obtaining any prior permission of the FIPB subject to prescribed parameters/ guidelines. If the acquisition of shares directly or indirectly results in the acquisition of a company listed on the stock exchange, it would require the approval of the Security Exchange Board of India.

Bank Account Opening

Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided.

Tell us the preference of Bank you want to have bank account with and we will get back to you with complete information.

Getting government approval for foreign direct investments (FDI) / FIPB Approvals.

FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.

Getting Reserve Bank of India (RBI), the apex banking body of India Approvals.

Any foreign company intending to open a liaison Office or a Branch Office or a Project Office in India is required to obtain prior approval from the RBI and any subsidiary company incorporated by foreign company or any foreign direct investment are required to be reported to RBI in form FCGPR.

Registration with Various Authorities

In India a Business Setup to become fully functional require to register with various tax, labour and other authorities. For eg. a manufacturing set up is required to obtain excise registration, trading setup is required to get registered with Sales Tax / VAT Authorities and an service oriented industry is required to register with Service Tax Authorities and obtain STC code whereas all set-up are required to obtain Income Tax Registration (PAN).

Published in accounting
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Friday, 31 March 2017 11:41

TAXATION

Maitreya Patni

Enhancing a stakeholder value is a fundamental concept, which drives every management effort in the modern business environment. Progressive and bottom – line focused managements have realized that taxes should be viewed as a dynamic item of cost, rather than a passive charge on the profits.

Indeed, an effective tax – cost management provides a distinct competitive advantage, which requires the application of appropriate tax strategies, proactively identified and scrupulously implemented.

In the modern day world all businesses are engaged in multinational transactions and operations, they are continually challenged to manage the impact of multiple and ever-changing tax -jurisprudence.

A.Chandak & Co. provides comprehensive and sophisticated tax assistance in effectively managing the impact of taxation. We help address, domestic and international tax issues.

Cross Border Taxation

  • Double Tax Avoidance Advisory
  • Transfer Pricing

Direct Taxation Advisory

Taxation Litigation Services

Tax Connect Services

  • Strategic Business Decisions
  • Succession Planning
  • Tax Review (Due Diligence)
Published in accounting
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Friday, 31 March 2017 11:17

SERVICE TAX & COMPLIANCE SERVICES

Maitreya Patni

Service Tax has now become one of the major sources of yielding revenue to the exchequer. It has been extended to several items with enhanced rates. The rules and regulations and various procedures laid down under service tax are very cumbersome, tedious and best with the problem of interpretation , disputes and litigation all its provisions have to be completed with very strictly . Even minor lathes can land you in soup. The tax has to be deposited in treasury with in the stipulated period and various returns are to be filed on prescribed forms with in specified dates failing which return penal action in called for.

We have with us extensive experience in handling the demands of Service Tax Consultancy services that comprise areas like:

  • Service Tax Registration
  • Consultancy on Services as per the applicability of Service tax Act
  • Filing of Service Tax returns in ST-3
  • Consultancy on deposit of monthly service tax of corporate and individuals
  • Maintenance of Service Tax Records
  • Liasioning with respective Authorities
  • Preparation of returns & challans
  • Handling departmental audit
  • Regarding credit claims

Here, our rich experience allows us to successfully handle all matters pertaining to services including handling of departmental audits. Working in close relation with client organizations, we analyze their needs and based on that perform execution of services, thus ensuring best possible service support is offered from our end. Some of the factors that distinguish us from others include:

  • Rich experience in the field
  • Capability to offer prompt and reliable services

Forming Legal entity in India

How one can enter in Indian Market
One can enter the Indian market in more ways than one. These are:

1. Liaison Office

A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate.

A liaison Office is not permitted to undertake any commercial / trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels.

Activities Permitted:

  • Representing in India the parent Company / group Companies
  • Promoting export/ import from/ to India
  • Promoting technical / financial collaborations between the parent / group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies

Approval / Incorporation

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof. In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.
  • In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Suitability of a Liaison Office

The liaison office generally acts as a communication channel between the parent company overseas and its present or prospective customers in India. The liaison office can also be set up to establish business contacts or gather market intelligence to promote the products or services of the overseas parent company. The liaison Office cannot undertake any business activity in India nor earn any income in India. The liaison Office has to meet its entire expenses from funds received from the parent company through normal banking channels. At the time of closure of the liaison Office, the RBI grants permission to repatriate the balance in the Indian bank account to the parent company. Since the liaison Office is not permitted to earn any income, it should not constitute a taxable entity in India. However, the liaison Office would be required to withhold tax from certain payments and hence to comply with the requisite tax withholding requirements under the domestic tax law.

2. Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office.

Activities Permitted:

As per the guidelines laid down by the RBI, the Branch Office in India is allowed to carry on only the following activities:

  • Export / Import of goods
  • Rendering professional or consultancy services
  • Carrying out research work, in which the parent company is engaged
  • Promoting technical or financial collaboration between Indian companies and parent or overseas group companies
  • Representing the parent company in India and acting as buying / selling agent in India
  • Rendering services in Information Technology and development of software in India
  • Rendering technical support to the products supplied by parent / group companies

Approval / Incorporation
Foreign companies intending to open a Branch Office in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India.

In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Branch Office is considered a part of the foreign company and is not treated as a separate legal entity.
  • The office can undertake trading activities, but not manufacturing.
  • It is subject to taxation in India at 42.23% on income accrued in India.
  • If there is a double taxation agreement with the country in which the foreign company is incorporated, the tax paid in India can be set off against the total tax payable by the parent company abroad.
  • Branch offices may repatriate profits to their Head Office without obtaining prior approval.
  • The Branch Office would not expand its activities or undertake any new trading, commercial or industrial activity other than that is expressly approved by the RBI.
  • The entire expenses of the Branch Office in India will be met either out of the funds received from abroad through normal banking channels or through income generated by it in India.
  • The Branch Office will not accept any deposits in India.

Repatriation of Profits

A Branch Office can remit the profits (net of any withholding tax) generated out of its operations in India on production of the prescribed documents, and on establishing that it has earned a net profit by undertaking the permitted activities. The Branch Office need not retain any profits as reserves in India.

3. 100% Owned subsidiary

  • Form a Company and the parent Company will hold 100% of Shares in the Company.
    • The Company can take up any business in India.
    • NO RBI permission.
    • Will be treated as Domestic Company
  • Tax Rate Slab will be 30%

Approval / Incorporation

The Company is required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

  • Can be independently promoted by Parent Company
  • Can be promoted by any two people in India and then the holding of this person can be purchased by the Parent Company. (If this is the case, intimation about the transfer of share is required to be informed to Reserve Bank of India).

Typical Points about 100% Subsidiary

  • The profit earned in India can only be taken away by parent Company in the form of dividend after payment of dividend tax.
  • No easy exit.
  • Transfer pricing issues if purchases made from sister concern.

4. Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

5. Joint Venture, With An Indian Partner

Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations
  • Established distribution/ marketing set up of the Indian partner
  • Available financial resource of the Indian partners

6. Foreign Direct Investment (FDI)

India's foreign trade policies have been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories - Investment under automatic route and investment through prior approval of Government.

Procedure under automatic route
FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure under Government approval
FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.

7. Investment by way of Share Acquisition

A foreign investing company is entitled to acquire the shares of an Indian company without obtaining any prior permission of the FIPB subject to prescribed parameters/ guidelines. If the acquisition of shares directly or indirectly results in the acquisition of a company listed on the stock exchange, it would require the approval of the Security Exchange Board of India.

Bank Account Opening

Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided.

Tell us the preference of Bank you want to have bank account with and we will get back to you with complete information.

Getting government approval for foreign direct investments (FDI) / FIPB Approvals.

FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.

Getting Reserve Bank of India (RBI), the apex banking body of India Approvals.

Any foreign company intending to open a liaison Office or a Branch Office or a Project Office in India is required to obtain prior approval from the RBI and any subsidiary company incorporated by foreign company or any foreign direct investment are required to be reported to RBI in form FCGPR.

Registration with Various Authorities

In India a Business Setup to become fully functional require to register with various tax, labour and other authorities. For eg. a manufacturing set up is required to obtain excise registration, trading setup is required to get registered with Sales Tax / VAT Authorities and an service oriented industry is required to register with Service Tax Authorities and obtain STC code whereas all set-up are required to obtain Income Tax Registration (PAN).

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Friday, 31 March 2017 10:51

INCOME TAX

Maitreya Patni

Holding many years of experience in a wide array of industries, our staff works to stay abreast of developments in our ever-changing state and federal tax laws. Our full line of tax services includes preparation of tax returns for individuals, corporations, partnerships and for other enterprises. We offer:

  • Business and individual tax planning, projections, and valuations.
  • NRI Taxations and foreign company's tax matters
  • e-Filing of Income Tax Returns
  • E-filing of TDS Returns
  • Consultancy on Income Tax Matters
  • Consultancy on Tax Planning & Savings
  • Consultancy on Double Taxation.
  • Consultancy on International Taxation
  • Global compliance services
  • Liaison with Income Tax Authorities
  • Getting Permanent Account Number (PAN)
  • Getting Tax deduction account numbers (TAN)
  • Services related to withholding taxes / Tax Deducted at Source (TDS)
  • Representation before taxing authorities.
  • Support for business acquisition, reorganizations, mergers, and incorporations.
  • Handling Search & Survey Cases.
  • Determining the Arm Length Pricing, Preparation of Transfer Pricing Report & Conducting Transfer Pricing Audit.

Taxation presents arguably the most dynamic and complex challenge in the context of financial planning. Ever changing legislation and rules are matched only by the new methods devised to make the discharging of tax liabilities as efficient as possible. When it comes to tax planning and strategy, every case is unique. Our approach remains versatile with an awareness that individual issues must be dealt with on their own merits but with the overall, long-term considerations always in mind.

Whether you are the tax director of a multi-national group, an owner manager, an individual setting up a company or in receipt of a income, an employee or a Public Benefit Organisation, we make sure you don’t pay more tax than is necessary and that your activities remain tax efficient.

We also value the importance of relationships, especially over the long-term. Getting to know your needs over time means we will become more knowledgeable of your affairs and can react proactively to changing tax requirements in line with your own special circumstances. A.Chandak & Co.’s tax services cover a number of broad areas.

Forming Legal entity in India

How one can enter in Indian Market
One can enter the Indian market in more ways than one. These are:

1. Liaison Office

A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate.

A liaison Office is not permitted to undertake any commercial / trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels.

Activities Permitted:

  • Representing in India the parent Company / group Companies
  • Promoting export/ import from/ to India
  • Promoting technical / financial collaborations between the parent / group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies

Approval / Incorporation

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof. In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.
  • In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Suitability of a Liaison Office

The liaison office generally acts as a communication channel between the parent company overseas and its present or prospective customers in India. The liaison office can also be set up to establish business contacts or gather market intelligence to promote the products or services of the overseas parent company. The liaison Office cannot undertake any business activity in India nor earn any income in India. The liaison Office has to meet its entire expenses from funds received from the parent company through normal banking channels. At the time of closure of the liaison Office, the RBI grants permission to repatriate the balance in the Indian bank account to the parent company. Since the liaison Office is not permitted to earn any income, it should not constitute a taxable entity in India. However, the liaison Office would be required to withhold tax from certain payments and hence to comply with the requisite tax withholding requirements under the domestic tax law.

2. Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office.

Activities Permitted:

As per the guidelines laid down by the RBI, the Branch Office in India is allowed to carry on only the following activities:

  • Export / Import of goods
  • Rendering professional or consultancy services
  • Carrying out research work, in which the parent company is engaged
  • Promoting technical or financial collaboration between Indian companies and parent or overseas group companies
  • Representing the parent company in India and acting as buying / selling agent in India
  • Rendering services in Information Technology and development of software in India
  • Rendering technical support to the products supplied by parent / group companies

Approval / Incorporation
Foreign companies intending to open a Branch Office in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India.

In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

  • Branch Office is considered a part of the foreign company and is not treated as a separate legal entity.
  • The office can undertake trading activities, but not manufacturing.
  • It is subject to taxation in India at 42.23% on income accrued in India.
  • If there is a double taxation agreement with the country in which the foreign company is incorporated, the tax paid in India can be set off against the total tax payable by the parent company abroad.
  • Branch offices may repatriate profits to their Head Office without obtaining prior approval.
  • The Branch Office would not expand its activities or undertake any new trading, commercial or industrial activity other than that is expressly approved by the RBI.
  • The entire expenses of the Branch Office in India will be met either out of the funds received from abroad through normal banking channels or through income generated by it in India.
  • The Branch Office will not accept any deposits in India.

Repatriation of Profits

A Branch Office can remit the profits (net of any withholding tax) generated out of its operations in India on production of the prescribed documents, and on establishing that it has earned a net profit by undertaking the permitted activities. The Branch Office need not retain any profits as reserves in India.

3. 100% Owned subsidiary

  • Form a Company and the parent Company will hold 100% of Shares in the Company.
    • The Company can take up any business in India.
    • NO RBI permission.
    • Will be treated as Domestic Company
  • Tax Rate Slab will be 30%

Approval / Incorporation

The Company is required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

  • Can be independently promoted by Parent Company
  • Can be promoted by any two people in India and then the holding of this person can be purchased by the Parent Company. (If this is the case, intimation about the transfer of share is required to be informed to Reserve Bank of India).

Typical Points about 100% Subsidiary

  • The profit earned in India can only be taken away by parent Company in the form of dividend after payment of dividend tax.
  • No easy exit.
  • Transfer pricing issues if purchases made from sister concern.

4. Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

5. Joint Venture, With An Indian Partner

Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations
  • Established distribution/ marketing set up of the Indian partner
  • Available financial resource of the Indian partners

6. Foreign Direct Investment (FDI)

India's foreign trade policies have been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories - Investment under automatic route and investment through prior approval of Government.

Procedure under automatic route
FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure under Government approval
FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.

7. Investment by way of Share Acquisition

A foreign investing company is entitled to acquire the shares of an Indian company without obtaining any prior permission of the FIPB subject to prescribed parameters/ guidelines. If the acquisition of shares directly or indirectly results in the acquisition of a company listed on the stock exchange, it would require the approval of the Security Exchange Board of India.

Bank Account Opening

Assistance and signatory services for opening and operating Bank account in India with all major international banks are also provided.

Tell us the preference of Bank you want to have bank account with and we will get back to you with complete information.

Getting government approval for foreign direct investments (FDI) / FIPB Approvals.

FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB.

Getting Reserve Bank of India (RBI), the apex banking body of India Approvals.

Any foreign company intending to open a liaison Office or a Branch Office or a Project Office in India is required to obtain prior approval from the RBI and any subsidiary company incorporated by foreign company or any foreign direct investment are required to be reported to RBI in form FCGPR.

Registration with Various Authorities

In India a Business Setup to become fully functional require to register with various tax, labour and other authorities. For eg. a manufacturing set up is required to obtain excise registration, trading setup is required to get registered with Sales Tax / VAT Authorities and an service oriented industry is required to register with Service Tax Authorities and obtain STC code whereas all set-up are required to obtain Income Tax Registration (PAN).

Published in accounting
Be the first to comment!
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