Importance of Accounting Outsourcing for a Company

Accounting Outsourcing is the practice of employing an independent company which will provide accounting services to the specific company. Accounting Outsourcing is often a way for accounting firms to generate business during the tax filing season. Every business firm needs to file taxes by the due date and for the concern it may require an Accounting Outsourcing Company for Payroll Services.

For Payroll and Financial Accounting Services, one surely requires a Chartered Accountant, but there are numerous points which should be considered prior to hiring a Financial Accounting Service Provider. Following are the points that should be considered.

Gather Details about Accounting Firm- Prior to selecting a Financial Accounting Company, there must be ample details about the firm and services offered by it. Internet Search- Searching on internet with regard to the Financial Accounting Firm can display authentic results for the query. The majority of the Accounting Companies have a website for customer’s ease.

Post Online Query- For solutions associated with tax filing and auditing, you can post queries on several Financial Accounting Firm’s website. There are specific sections on such website where website visitors can enter their query and benefit from immediate feedback. Take a Look on Customer’s Review- On a good Accounting Firm website; testimonials are posted by erstwhile and existing customers. Reading these testimonials is extremely helpful for a prospective client who wishes to avail the services.

Compare With The Various Cost Estimated - One of the major benefits of Accounting Firm Website is that, anybody can quickly compare charges charged by different Accounting Company. This makes it easy for any client to choose a service provider that fits his budget.

Above described factors are extremely helpful for seeking a genuine Financial Accounting Service Provider. In addition to all these considerations, security is really a major point that can’t be overlooked while using such services. Security in the context of Accounting Service also involves network security in order to ensure safe exchange of confidential data between your computers. Hence, network security is required to avoid loss of data and tampering. Accounting Outsourcing generally is a economical solution for the businesses having limited resources. Thus, Accounting Outsourcing is becoming popular in the corporate sector. Consequently, a number of Accounting Firms have emerged which are involved in providing Charter Accounting Services in Delhi, at the most affordable charges.

RNA Advisory gives advice to business owners about Importance of Accounting Outsourcing for a Company. To know more about Finance and Accounting Outsourcing Services in Delhi visit http://www.rnadvisory.com

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Online filing of Tax Audit Report

With effect from Assessment Year 2013-2014, it has become mandatory to file audit reports online by Chartered accountants using their digital signatures.

This is a good step in terms of curbing the mal practices wherein the tax audit reports were filed in Income Tax by using the membership number of Chartered Accountants. Earlier, only the membership number of professional was required to be filed with online Income Tax return in case of tax audit report and no signed copy was to be submitted to Income Tax department. As a result many fake filings have been done in the past by using the credentials of professionals without even their information.
 

A lot of representations were made by professionals to ICAI to prevent this malpractice. Finance Act 2013 has come up with the provision of online filing of audit reports to put a stop on this.

The detailed steps to file audit report online are as follows:
 

• Every professional is required to register himself/herself on the Income Tax online filing portal i.e. https://incometaxindiaefiling.gov.in/ under the heading Tax Professional. Select the heading “Chartered Accountant” and click “Submit”

• Fill in the details viz. membership number, date of enrollment, Name, Date of Birth, PAN etc.
  After registration, a link to activate the on the email ID. The user ID of professional will be “ACRA” followed by his membership number for Example: ACRA123456.

• The next step is to be taken by the assessee whose accounts are required to be audited by the CA. Assessee will login to his account and add CA in the “Add CA “ option. Enter the membership number of CA. His name will appear if he is registered as a Tax Professional

• Tax audit report needs to be filled by CA from the utility available in Income Tax portal. The signed copy of Tax audit report needs to be attached with the same and xml is required to be uploaded from the login of professional.

• The tax audit report submitted by CA will be considered for final submission only when the assessee login from his account and approve the tax audit report. The assessee has right to reject the report also.

The process of filing including approval for audit under section 44AB has to be completed on or before 30th September, 2013.

Non Compliance of provisions of getting the accounts audited under section 44AB shall attract penalty under section 271B. The liability of penalty is half percent of turnover or Rs 150,000 whichever is less.

“RNA Advisory Pvt Ltd”, are an eminent firm engaged in rendering excellent services for Accounting, Auditing, Tax and Financial & Registration Related Services (SSLI Zone). These services are in conformance with the set rules and guidelines of the industry so as to attain maximum client satisfaction. For further query shoot an email: contact@rnadvisory.com

Content Source: http://www.rnadvisory.com/news/online-filing-of-tax-audit-report.html

 

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Few basic things to be kept in mind while starting a company

Few basic things to be kept in mind while starting a company:

Shareholders and Directors: A Private Limited Company can have maximum of 50 shareholders and should have minimum 2 shareholders at a time. A Public Limited Company has no restriction on the maximum number of shareholders and but minimum number of shareholders must be 7.

Memorandum & Articles of Association : The Memorandum of Association (MOA) states the main, ancillary or subsidiary along with other objects of the proposed company. The Article of Association (AOA) covers the rules and procedures for the routine conduct of the proposed company, the authorized share capital of the proposed company and also the names of its first or permanent directors. Thereafter, both MOA and AOA are required to be stamped.

A stamp duty, depending on the authorized share capital, is to be paid on both.

Share Capital : Shares should be expressed in fixed amount. Shares like “No par value” or “bearer” are not permitted and the shares to be subscribed should be expressed in Indian rupees.

Accounts & Auditors : Each company is suppose to appoint an auditor annually at its AGM. The auditor must be qualified by virtue of the Institute of Chartered Accountants of India Act 1949 and should be completely independent of the concerned company. The audited accounts of the concerned company serve as a tool for various stakeholders like creditors, investors, bankers and revenue authorities.

Public Filings: The names and all the required personal details of the directors and secretary, share capital, register of charges, registered office address, and other such particulars should be filed with the Companies Registry for any public inspection upon incorporation and if there is any change thereafter.

Annual Meetings: An Annual General Meeting (AGM) is mandatory to be held once in every financial year and not more than 6 months after the end of the financial year. For a new company it is not required until 18 months of its incorporation.

Documents required to be executed for incorporation
The following documents are required to be executed (signed) before they are submitted to the ROC:

MOA and AOA - These are required to be executed by the promoters in their own hand in the presence of a witness in quadruplicate stating their full name, father’s name, residential address, occupation, number of shares subscribed for, etc.

Form No. 1 - This is a declaration to be executed on a non-judicial stamp paper of INR 20 by one of the directors of the proposed company or other specified persons such as Attorneys or Advocates, etc. stating that all the requirements of the incorporation have been complied with.

Form No. 18 - This is a form to be filed by one of the directors of the company informing the ROC the registered office of the proposed company.

Form No. 29 - This is a consent obtained from all the proposed directors of the proposed company to act as directors of the proposed company. (Not required in case of private company).

Form No. 32 - This is a form stating the fact of appointment of the proposed directors on the board of directors from the date of incorporation of the proposed company and is signed by one of the proposed directors.

For more information about Company Registration in Delhi follow this link : www.rnadvisory.com/companyformation.html

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How to start a Company in India

Some Important Steps to Start a Business in India

India is augmenting everyday in different kinds of businesses. Citizens of India are no more dependants only on jobs in private or government sectors; rather they prefer to try their luck in business. Having one of the most growing economies of the present world India offers great opportunities for promising entrepreneurs. One can choose any of the booming industry type from the wide array of choices available in this country. However, you need to follow some steps to start a business in India. In this article we will discuss some of those steps that are vital for any Indian businessman while approaching to a new business.

Steps to Follow:

·         You need to visit the website of Corporate Ministry Affairs in order to get the DIN or Director Identification Number. This is important for a business to be set up in India. You need to fill an online form to get that number and once you get it, you have to send it for further verification with your correct identity and address prove.

·         Then you have to register your company name with the Registrar of Companies or ROC. You can give 2-3 suggested names for your company and can find the availability of the names on the site of MCA 21. The entire process of getting the name registered will take 2 or 3 days. This is one of the most important steps to start a business in India.

·         You must have your documents signed by the superintendent or an authorized bank that are related with the set up of your business. This must include copies of the payment receipts, association articles, and other memorandum. After that you will get back all the stamped papers to know that the stamp duty is properly paid.

·         Then the stamped papers need to be signed by the promoters with a thorough description of the activities and purposes of the company. Witness must be their when these papers are signed.

·         You need to fill the forms 1, 18 and 32 on the MCA site in order to get the certificate of incorporation. You need to pay the payment online or offline mode. The incorporation certificate will be sent to the registered office of your company.

·         You need to obtain the PAN or Permanent Account Number of you company in order to get the facility of payment and tax deduction. An approved National Securities Depository Services Ltd. can provide the PAN.

·         You need to have a Tax Account Number or TAN for tax deduction and tax collection services. Department of Income Tax can provide you this number.

·         You need to register your business with the Shops, and Establishment Act, Inspectors Office, and Sales Tax officers to sign up for VAT. This is one of the many steps to start a business in India.

·         Lastly, you should register your company name with the employee's Provident Fund Organization, profession tax and medical insurance.

These are the vital steps that one should follow and maintain correctly in order to set a lawful business in India.

Ritesh Jha is a business consultant and an employee of RNA Advisory Pvt Ltd, one of the leading total business solutions providing company in Delhi engaged in Company Registration Delhi and Trademark Registration in Delhi at the best & affordable fees.

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Need for advisory firm to set up BUSINESS IN INDIA

Setting up business in India is very difficult now days. Government is putting procedures to every mandatory formality; there have been profound changes in legal processes within the country related to taxation. This can turn your plans into a time-consuming effort. Consider this – setting up a business in India takes 33 days and closing your business here takes 10 days. (Source: World Bank’s Report: “Doing Business in 2008”) According to the same report, the number of procedures involved in setting up business in India is 13.  

India is one of the most favored destination for FDI over 2010-12(World Investment Prospects Survey 2010-12, UNCTAD). There has also been significant growth, evident in the rising wealth of India's new entrepreneurial businesses and in the success of huge middle class.

The new buzz words are "procedures","efficiency","effectiveness" and "marketing”. Many foreign companies, sensing India's potential be it any segment, have also become increasingly involved here. It is easy to do business in India, and rewarding as well only if you are accustomed to the legalities involved in the processes and with proper Business Advisory Firm working with you. A proper Business Advisory Firm will explores the potential, the problems, and the possible solutions for doing business in India, whether you are an established Indian company, a rising entrepreneur, or a foreign company thinking about coming in. One not only need an overview of tax structure and current tax rates in India but also require details of elaborate reforms over the past couple of decades in order to enhance rationality, ensure simplicity and improve compliance for business units  to work according to mandatory  taxation structure.

 India has a federal system of Government with clear demarcation of powers between the Central Government and the State Governments. The tax on incomes, customs duties, central excise and service tax are levied by the Central Government. The state Government levies agricultural income tax (income from plantations only), Value Added Tax (VAT)/ Sales Tax, Stamp Duty, State Excise, Land Revenue, Luxury Tax and Tax On Professions. The local bodies have the authority to levy tax on properties, octroi/entry tax and tax for utilities like water supply, drainage etc.

Complex Nature of Taxes: After the government has levied a tax, changes become necessary to plug loopholes or to create desirable incentives or disincentives. There are some undesirable reasons also like political pressure causing rollbacks and put leverages for certain section. For example, Income has to be defined unambiguously for tax purpose. Exemptions, deductions and rebates are to be prescribed, and surcharges are to be introduced for specific purposes. A schedule of tax rates, audits and many more legal formalities is to be prescribed; failing to do so may cause hefty penalties. Because of all this, it becomes difficult to know how much tax a person is supposed to pay, with the help of a proper advisory firm.

RNA Advisory can be one stop solution for these types of problems which have people with 25 years of experience accompanied with young and energetic staff which can understand all new needs of business.

Ritesh Jha is a business consultant and an employee of RNA Advisory Pvt Ltd, one of the leading total business solutions providing company in Delhi engaged in Company Registration in Delhi and Trademark Registration Delhi at the best & affordable fees.

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GUIDE TO SET UP YOUR BUSINESS IN INDIA

Is starting business in India a good idea?

Setting up a business in India is still an extremely difficult task when compared to other countries. Long legal formalities and procedural delays are common. This can turn your plans into a time-consuming effort. Consider this – setting up a business in India takes 33 days and closing your business here takes 10 days. (Source: World Bank’s Report: “Doing Business in 2008”) According to the same report, the number of procedures involved in setting up business in India is 13. On the whole, the “Doing Business 2008 Rank for India” is 120 for 2008. India ranked as the second most favoured destination for FDI over 2010-12 (World Investment Prospects Survey 2010-12, UNCTAD)

Since the early 1990's, when the Indian government began its (slow) process of liberalizing the economy, there have been profound changes in attitudes, expectations, and processes within the country.  There has also been significant growth, evident in the rising wealth of India's middle class and in the success of many new entrepreneurial businesses.

The new buzzwords are "productivity", "quality", "marketing", and "management structure".  Both imports and exports are rising, and overseas markets are being tested by newly confident Indian companies.  Foreign companies, sensing India's potential, have also become increasingly involved here.  Economic growth, while bringing many positive changes, has also severely taxed the country's infrastructure capacity.  It has threatened an entrenched business elite as well as a powerful government bureaucracy, and has put pressure on the social fabric of the country.  It is not yet easy to do business in India, for either Indians or foreigners, but it is increasingly becoming rewarding.  This section explores the potential, the problems, and the possible solutions for doing business in India, whether you are an established Indian company, a rising entrepreneur, or a foreign company thinking about coming in.

Your options

Today, India has gained prominence as a premier investment destination. It would be difficult for you to keep track of the constantly changing procedures and laws related to the same. But professional advisors and Chartered Accountants can be of immense help in evaluating the risks and rewards of setting up your business in India. You can set up public sector companies, private sector companies, branch offices or even project offices here with the approval of the government of India.

Setting up business in India: the necessary checklist

• Check your eligibility to set up business here. Remember only NRIs and PIOs can invest in proprietary concerns or partnership firms in India today.
• Make sure that you get a PAN card issued by the Indian Income Tax department. You’ll need a PAN for all your business transactions. The process to obtain your PAN card is easy and can be done online as well.
• Identify and select your business partners and also peruse your finance options carefully. Seek the services of an established lawyer or accountant to draw up the necessary contracts.
• Check for restrictions on setting up a business in India. As an NRI you cannot start any business in the following areas – agriculture, real estate or the print media.

Foreign Investments in India

The FDI regime has been progressively liberalized during the course of the 1990s (particularly after 2000). A number of restrictions on foreign investment have been removed and procedures simplified. With limited exceptions, foreigners can invest directly in India, either on their own or as a joint venture industries where foreign investment is prohibited. Moreover, investment ceilings, which are applicable in certain cases, are gradually being removed/phased out. India has witnessed a steady increase of foreign inflows over the years. FDI net inflows have grown at a rate of over 30% compounded annually over the last decade.

Features of the government’s foreign investment policies and incentives offered by it:

·         No government approval is required for FDI in virtually all the sectors/activities, except for a small negative list formulated by the government.

·         The government has formulated ‘Sector-Specific Guidelines for FDI,’ wherein investments up to specified sectoral caps are covered under the automatic route, with a few exceptions.

·         Foreign Investment Promotion Board considers proposals for foreign participation that do not qualify for automatic approval.

·         Decisions on all foreign investment proposals are usually taken within 30 days of submitting an application.

·         Free repatriation of capital investment is permitted, provided the original investment (on a repatriable basis) was made in convertible foreign exchange. Further, free repatriation of profits on capital investment is permitted, subject to payment of taxes and other specified conditions.

·         Indian capital markets are open to FIIs.

·         Indian companies are permitted to raise funds from international capital markets.

·         Special investment and tax incentives are given for exports and sectors, including power, electronics, software and food processing.

·         ‘Single window’ clearance facilities and ‘investor escort services’ are available in various states to simplify the approval process for new ventures.

Ritesh Jha is a business consultant and an employee of RNA Advisory Pvt Ltd, one of the leading total business solutions providing company in Delhi engaged in Company Registration Delhi and Trademark Registration in Delhi at the best & affordable fees.

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