Bookkeeping & Accounting services

5 REASONS TO OUTSOURCE BOOKKEEPING & ACCOUNTING SERVICES

Bookkeeping & accounting services are one of the most essential services for every business. Bookkeeping is systematic way of keeping the records of company’s accounts, financial statements and all the financial transactions which were recorded under the name of company. Modern day bookkeeping does not just end here, infact the real challenge starts from here.

With the new technology updates every now and then, bookkeeping has also evolved over time. In the traditional times bookkeeping was considered a tedious job since a lot of paper trail need to be prepared so as to refer the documents in future. But modern day bookkeeping is on everyone’s finger tips and is just a click away.

Major reasons to outsource your bookkeeping & accounting services are:

1.) Helps in effective planning of resources: Resource is the most primary fundamental on which every business smoothly runs its operations. So minimal wastage at the most primary stage will increase the efficiency of the enterprise and it will make it easy for you to bring economies of scale to your business.

2.) Managing accounts books: Online bookkeeping services will make it easy to maintain and manage your company’s books of accounts. Since the bookkeeping is the mandatory requirement under different statutory laws which need to be fulfilled such as:

Companies act, 2013

  • Companies act, 2013 mandates that books of accounts should be maintained for a period of 8 years immediately preceding the current year.
  • Section 25 companies which are solely formed as “Non-profit companies” are required to keep books of accounts for period of not less than 4 years.

Income tax act, 1961

  • If the turnover from business/profession is more than INR 25, 00,000 or the income from business/profession exceeds INR 2, 50,000 in any of the 3 preceding financial years, then it is mandatory on the part of the assessee to maintain the records.
  • The books should be maintained for a period of 6 years from the relevant preceding year.

3.) Improved decision making: When you have all the past performance with you, it becomes easy to analyse where the enterprise is lacking behind. Ones you can see all the quantitative reports in front of you, a business can make a much informed decision. With proper analysis of the accounts comes better decision making power. If you does not possess the books of account of your business then it might hamper your decision making power which will you and your business to grow. Hence your decision making also depends on the bookkeeping. Professional bookkeeping service will help improve the quality of accounts you maintain and makes the analysis easy.

4.) Ease in reporting: Investors want to know the company’s financial results to be able to measure its investment value. Exactly this is what financial statements do. The balance sheet, statement of sales, and statement of cash flow all display the importance of your company.

Financial statements are the result of bookkeeping. Bookkeeping helps investors to keep the details up-to-date and available. Investors should be able to make smarter, well-educated choices that are essentially for bookkeeping purposes. Bookkeeping is not only about existing investors but also about potential investors.

Accounting & Auditing

FREQUENTLY ASKED QUESTIONS (FAQ’s)

Question: Why should I outsource my bookkeeping & accounting services?

Outsourcing bookkeeping & accounting services will help a bookkeeping expert to manage all your company’s books of account and make an informed decision on the same. Modern day bookkeeping has many more things which will help in optimizing your compliance cost, make it convenient to analysis the company’s performance, save time and resources.

Question: How does outsourcing bookkeeping & accounting works?

Compiling data >>> Preparing invoices/receipts >>> Verifying receipts >>> Matching the cash/bank statement >>> Income statement >>> Balance sheet >>> other financial statement

Question: How much does outsourcing bookkeeping & accounting services cost?

As compared to the internal cost of setting up bookkeeping & accounting department internally in the organization, outsourcing is most beneficial. Setting up an internal department will wash away an enterprise most precious time & resources whereas if you outsource bookkeeping & accounting service it will help you to maintain economies of scale for your enterprise.

Feel free to reach out to our bookkeeping & accounting experts to get further guidance on the same.

Contact  Info
Call:     (0120)-4231116
E-mail:
info@caonweb.com

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Read more: Why Outsource Bookkeeping Work to Professionals?

Read more: Why Is It Cost-Effective and Advantageous To Have a Professional Maintain Your Book?

BEST ACCOUNTING SERVICES

Reasons Why Each Business Needs Accounting Services

Accounting is that part of business activity that prepares the fundamentals of a successful business. Therefore most of the successful businesses focus on their accounting services and invest their best of resources in it for better results. Accounting & bookkeeping services act as pre-requisite in auditing, income tax planning, financial planning & preparing annual financial statements etc.

Various accounting services that every business requires are:

–         Bookkeeping services

–         Income tax consultancy

–         Audit & assurance services

–         Preparing financial statements

–         Trial balance reconciliation

–         Preparing Balance sheet

5 REASONS WHY YOU NEED BEST ACCOUNTING SERVICES FOR YOUR BUSINESS

1.     Effective use of resources

The most important resource for any business is time and money invested and having the best accounting services can save you on both the resources. Since accounting services require professional expertise therefore it becomes a time-consuming process. Professional accounting services will help in making your business fundamentals strong enough to effectively manage your time in the future.

2.     Privacy

Privacy of the financial documents of the company is of the utmost priority. Therefore outsourcing your accounting & bookkeeping services to a trusted and experienced accounting professional who understands the secrecy of business documents well.

3.     Minimize the chances of error

To minimize the chances of error in your business any further, it is essential to invest the best accounting practices in your business. This will reduce the chances of error and help you to identify any flaws in the future. The best way is to outsource accounting & bookkeeping services to an expert professional.

4.     Track & optimize business expenses

Accounting services are most essential since they not just help to keep a track of your business activities rather they are helpful in optimizing the same. Most of the business expense can be avoided and those can be effectively tracked if you have a well-structured accounting system in place.

5.     Income tax planning

Every business needs effective tax planning to save on to their income tax. Therefore proper account management becomes more important because effective income tax planning will not be in place unless a structured accounting service is not inculcated in the business.

FREQUENTLY ASKED QUESTIONS ON ACCOUNTING SERVICES

Q      How online accounting & bookkeeping service will help your business?

The first and foremost step is to have a reliable accounting & bookkeeping service to make your business compliance-friendly. Now accounting service is not just about maintaining your books of accounts but it is a statutory requirement. This requirement of having accounting services is irrespective of the size of the business; whether it’s a large business or an MSME everyone has to fulfill the statutory requirement of preparing accounts for a certain period.

Q      How Bookkeeping service is different from accounting service?

Bookkeeping relates to identifying, measuring and recording the financial transaction whereas; accounting is the process of summarizing, interpreting financial transaction and classify them in a ledger account. Basically the objective of bookkeeping and accounting is different.

In Bookkeeping it is expected to keep the records of all the financial transactions in a systematic format whereas in accounting the objective to calculate the financial position of the company based on which the management would take the decision regarding future aspects of the company.

Q      Is it mandatory to maintain the record of financial transactions?

Yes, it is mandatory to keep the record of financial transactions during the financial year. This requirement is different under different statues.

Companies act, 2013

Section 128 of the companies act, 2013 specifically mentions the books of accounts for a period of 8 years immediately preceding the current year.

Income tax act, 1961

If the sale/turnover from the business or profession exceeds INR 25, 00,000 or the income from business/profession exceeds INR 2, 50,000 in any of the 3 preceding financial years.

The books should be maintained for a period of 6 years from the relevant preceding year.

Q      When to hire an accountant?

Hiring an accountant or outsourcing an accounting service to a 3rd party is the most primary step. The job of an accountant starts even before the commencement of the business since various expenses and accounts need to be prepared well in advance. Therefore, one should not delay in hiring an accountant for their business.

Q      Why should I choose Caonweb for providing an accountant?

CAonWEB is one of the professional bookkeeping services provider in India with one of the finest & experienced professionals on board. Choosing CAonWEB gives you the advantage over the rest of the market by ensuring:

–         Secrecy of data

–         Expert handling

–         Online services

–         Access to your data

–         Data integration

–         Customized bookkeeping

–         User friendly interface

Knowing the confidentiality of the data ensures the complete confidentiality of the client’s data. “Bookkeeping is not about business, it’s about trust”

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Why Outsource Bookkeeping Work to Professionals?

Why Is It Cost-Effective and Advantageous To Have a Professional Maintain Your Book?

Bookkeeping & Outsourcing

COMPANIES FRESH START SCHEME

COMPANIES FRESH START SCHEME, 2020

In a bid to provide relief measure to companies and Limited liability partnerships (LLPs), the Ministry of corporate affairs (MCA) has introduced two schemes namely Companies fresh start scheme, 2020 & LLP Settlement scheme, 2020.  In this article, we will discuss all the updates and benefits pertaining to the companies fresh start scheme, 2020.

According to Section (403) Companies Act, 2013 every company irrespective of it size, nature of business is required to make certain annual statutory compliance viz.  Annual returns, Annual financial statements & various other statements as specified from time to time. These documents are required to be filed on the MCA-21 electronic registry portal.

Key highlights of company fresh start scheme, 2020

  • No Higher/additional fees: CFSS, 2020 removes the clause of any additional or late fees which is charged for the delay in their annual filings or any other pending compliance which leads to non-disclosing such returns and the stakeholders opting for un-healthy practices to hide their information.
  • No Prosecution/Proceeding: With the help of CFSS, 2020 they will not just get additional fees waiver but granted with immunity from any proceeding for imposing a penalty on account of delay in filing the documents.
  • Relaxation for inactive companies: Inactive companies can maintain their presence in the register of companies with minimum compliance requirements since CFSS, 2020 gives them an opportunity to inactive companies to get the tag of “Dormant Company” under the companies act.
  • Applicability: CFSS, 2020 shall come into force from 01.04.2020 and remains for a period of 6 months i.e. till 30.09.2020. With this, almost every company will get enough time to make the arrangements and take the complete benefit of the scheme.

COMPANY REGISTRATION At The LOWEST PRICE !! Call @ (0120) 4231116

Non-Applicability of Companies fresh start scheme, 2020

CFSS, 2020 shall not be applicable to entities falling under any category mentioned below:

  • If the final notice by the adjudicating authority has already been served under section 248 of companies act, 2013.
  • If an application for the striking of the companies name from ROC has already been filed by the company with the registrar.
  • In case two or more companies have been amalgamated under the companies act, 2013.
  • If the application has been filed by the company to get the dormant status under section 455 of the companies act, 2013 prior to companies’ fresh start scheme.
  • If a company is titled as “Vanishing company”
  • Any increase in authorized capital is the context.

Benefits of Companies fresh start scheme, 2020

  • Incentivize compliance & reduce the compliance burden which Companies are facing especially during this time of COVID-19.
  • Provides a one-time waiver on additional fees which is charged on companies because of delayed filing.
  • Waive off the long-standing defaults, thereby giving the companies a fresh start; which itself signifies the importance of the scheme.
  • Immunity from penal proceeding against penalties for a late submission.
  • Additional time for filing appeals before the regional directors (RD) against the imposition of penalties.

[NOTE: This is a one-time waiver against additional filing fees for delayed filings]

New procedure of company incorporation

New procedure of company incorporation

Recently the government has released the Form SPICe Plus (SPICe+) under the ease of doing business in India initiative. The newly launched Form Spice + has replaced the old Form Spice which was a pdf form for Company incorporation. It is mandatory for online Company registration of all the Companies as per the directives of the Ministry of Corporate Affairs. The company here means all kinds of Companies being incorporated be it a Private limited company, Public Limited Company, One Person Company, Nidhi Company, Section 8 Company or Producer Company. With effect from 23rd February, 2020 all Companies shall be incorporated through the newly launched web form SPICE+.

FEATURES:

The form SPICe+ aims to offer about 10 services by three Central Government Ministries and Departments (Ministry of Corporate Affairs, Ministry of Labour and the Department of Revenue in the Ministry of Finance) and one State Government (Maharashtra). The Company registration form is an integrated web form with a single-window for multiple services.

The newly integrated web form SPICE+ offers the following services:

– Part A –: Name Reservation

– Part B: Company Incorporation

  • Application for DIN
  • Corporate Identification Number
  • PAN Number
  • TAN Number
  • GSTIN Number
  • EPFO Registration
  • ESIC Registration
  • Opening of Bank Account for the Company
  • Profession Tax Registration (only for Maharashtra)

Related Blog: SPICE PLUS COMPANY PROCEDURES

Part A (Name Reservation) and Part B (All Other Services) can be applied for on a simultaneous basis.

Part A can be applied separately and upon reservation of the name, Part B can be applied for.

OTHER SIGNIFICANT CHANGES:

  1. With the introduction of a new dashboard for the web form SPICe+ and linked forms, the approved name will be displayed on it, eliminating the need to do an SRN search.
  2. Companies incorporated through SPICe+ will have to apply for mandatorily:
    EPFO Registration
    – ESIC Registration
    – Opening of a Bank Account (AGILE – PRO)
    – Profession Tax Registration (only for incorporation in Maharashtra)
  3. Once the application is completed in all respects, the next step would be the downloading and signing the application.
  4. Pre-scrutiny checks and other validations happen in the web form, but DSC Validation will happen only at the upload stage.
  5. Declaration by the subscribers and the first directors in INC – 9 shall now be auto-generated in PDF format and submitted electronically.

Related Blog: Online Business Registration Anywhere in India

Therefore the newly launched SPICE+ form is said to save valuable time, procedure and cost, it is an one stop solution for all the Company incorporation requirements.

FAQ:

How do I change my company name?

Once the Company is incorporated the change in Company name means change in all the incorporation documents. For assistance drop a query by clicking on the link https://www.caonweb.com/company-registration.php

Do I need a business bank account?

Yes, every company needs to operate through a current bank account, therefore the new incorporation procedure provides for bank account number at the time of incorporation.

What is the DIN (Director Identification Number) to register a new company?

DIN is the Director Identification Number which is a unique number assigned to a director and the same number can used in all the companies with whom the Director is associated.

Related Blog : ALL ABOUT COMPANY REGISTRATION IN INDIA

Is it possible to register a company online?

Yes, under the ease of doing business in Indi initiative the whole Company registration procedure is online.

How can one get Private Company Registered?

For getting the private Company registered one requires CA services as the process needs professional guidance. For info click on the link https://blog.caonweb.com/ to search & find the related topic

How to Register a Company in India

Private Limited Company Registration is the most general and suitable form of entity for carrying out business in India with a long term objective. A Private Limited Company Registration is governed by the Companies Act 2013. The business under this structure can be started by making investment through the equity shares in the Company. It has the advantage over other forms of business structure as it has limited liability, greater stability and recognition. The Basic Requirement for a new Company Incorporation in India is to have Minimum Two Directors and Two Shareholders (Both can be same as well).

Related Blog : ALL ABOUT COMPANY REGISTRATION IN INDIA

DOCUMENTS REQUIRED TO INCORPORATE COMPANY IN INDIA:

  • Self-attested copies of pan cards of all directors.
  • Self-attested copies of id proof like Passport/Aadhaar/Voter Id.
  • Self-attested copies of address proof like bill/ bank statement
  • Passport size Photos of all directors.
  • Valid email id & contact number of directors.
  • Address proof for registered office like electricity bill/utility bill not older than 2 months.
Accounting and Bookkeeping services

OVERVEIW

Before going for Company registration it’s important to have a broader idea about the major Amendments in Company Incorporation Process. Ministry of Corporate Affairs (MCA) has introduced new web forms for Company registration in India based on the Companies Act, 2013. The Ministry of Corporate Affairs (MCA) under the ease of doing business initiative has introduced the new SPICE+ web form which is a linked form for Company incorporation in India. The new web form contains various registrations like:

  • DIN i.e. Director Identification Number
  • Company Incorporation Certificate
  • PAN Number
  • TAN Number
  • GST i.e. Goods and Service Tax Registration
  • Allotment of Ban Account No.
  • EPFO Registration
  • ESIC Registration

PROCEDURE FOR COMPANY REGISTRATION

  • 1.   Name approval

First of all, one needs to decide the name of the proposed Company which will be applied to MCA for approval. Names provided should ideally be unique and suggestive of the business activity of the Company.

  • 2.   Application of DSC

The next step is to apply for Digital Signature Certificate. Digital signature is an online signature used for signing the e-forms with the Ministry.

  • 3.    MOA & AOA Preparation

Once the name is approved, required incorporation and subscriber documents are prepared along with the Memorandum of association and Articles of Association. These contain the rules & byelaws of the company as per the Companies Act, 2013.

  • 4.   Filling of the Application form

The  Government has simplified the procedure and has introduced a single web form for all necessary applications i.e. Spice+. Hence, application for Company registration, DPIN, PAN  TAN, ESI, EPF, GST and Bank Account Number for the company can be applied along with the incorporation application.

  • 5.   Get incorporation certificate

After filing the web form SPIC+ with the ministry the MCA takes its time to check, verify and review the incorporation application. After doing the same the Forms are approved and the Certificate of Incorporation is generated. The COI contains the CIN i.e. Corporate Identification Nubmer, Date of Incorporation and the PAN, TAN number of the newly incorporated company.

Caservices can be availed, as they help in incorporation of new company, compliance, advisory, and management consultancy services to clients.

To know more visit: What is Advance Tax and Due Dates for Advance Tax Payment

FAQs

Ques. What are the Compliances to be done after company formation?

Ans. After Company Formation, The Very first Step is to transfer the share application amount in the bank account and file form for Commencement of Business, Prepare of office stationery i.e. letter head, stamps etc., and appointment of the first auditor of the company.

Ques. Who can be the member of a Company incorporated in India?

Ans. Any individual or organization can become the member of company.

Ques. What is the validity period of Certificate of Incorporation Issued by the ROC?

Ans. Once a Certificate of Incorporation (COI) is issued by the Registrar of Companies, it is valid for the lifetime of the company.

Ques. How can we check whether the company registration process is complete?

Ans. Once the Company is successfully incorporated the master data is generated on the Ministry of Corporate Affairs website and can accessed by the public.

Related Blog: Mobile & E-Mail Validation Before ITR Filing

startup registration

The Complete Guide to Choosing Your Business Structure

             Choosing a business structure is one of the most important decisions to be taken by entrepreneurs as a business can’t be successful only with a great idea and investment. A successful business also depends on the type of business structure entrepreneurs are using. You can take help of professionals for startup registration or online company registration in India as it involves less cost, less time and efforts.

We are explaining below business structures prevailing in India along with their features to help you in your startup registration:

Sole proprietorship

Sole Proprietorship is suitable for those businesses which are small in size or have limited investment. As there is a single owner, all the profit and loss is shared by that single person only. All the assets owned by the owner himself and the liability of the owner is limited to the extent of capital contributed by him. It is easy to form and does not have any legal formalities as compared to Partnership or Company.

Read Other Blog: WHAT IS MSME REGISTRATION FEES & PROCESS?

Partnership Firm

A Partnership Firm is an agreement between two or more persons or partners who come together to form a business. Partners make a partnership deed which is a written agreement specifying the names of each partner, address, capital invested by each partner and profit sharing ratio. All the partners have unlimited liability. Registration of a partnership firm is not mandatory but it is always advisable to register it.

Limited Liability Partnership

Limited Liability Partnership is formed to provide limited liability to its partners. It has benefits of both partnership firm and company into a single form of organization. Partners have limited liability to the extent of capital contributed by them and they don’t have to suffer on behalf of its other partners. It is easy to form and it is also easy to become a partner in LLP.

Now Register Your Company in Dubai

Private Limited Company:

A Private Limited Company is a company which is owned privately by the individuals. The private company registration process is more flexible and easy as compared to Public company registration process because many provisions of the Companies’ Act 2013 are not applicable to it. The minimum number of directors required in it is 2 and the minimum number of shareholders required in it is 2 and the number of shareholders is limited to 50 only. It cannot invite the public to apply for its shares. It is more preferred by investors because they can buy/sell their shares easily.

Public Limited Company:

A Public Limited Company is a company which is owned by the public or in which the public can subscribe. It can raise capital from the public directly through issues of shares. The minimum number of directors required in it is 3 and the minimum number of shareholders required in it is 7 and there is no limit on the maximum number of shareholders. Its shareholders have limited liability to the extent of the face value of its shares and the premium respectively.

One Person Company:

One Person Company or OPC was introduced in India so that an individual person can also start his company. OPC has only one person as a member who can act in the capacity of a director as well as a shareholder. It is only permitted to a resident of India to incorporate OPC and any person from outside India cannot incorporate it. One person company registration process is easy as there are less legal requirements as compared to Private and Public company registration process.

                  The process of startup registration or online company registration in India is difficult to understand for entrepreneurs and also involves tedious documentation part. The company registration process also requires professional certification from professionals like CA, CS, and CMA. Therefore, it is better to consult professionals for startup registration and online company registration in India.

You can search such professionals on online directory of CAONWEB near you who can help you in startup registration and online company registration in India.     

Private Limited Company

How can a third party invest in a Private Limited Company?

Among various types of businesses in India, Private Limited Company registration is favoured by businessmen to start a business by enjoying strong control over its operations. Private Limited companies are preferred by the promoters when medium scale operations are to be covered under proposed Business without any interference of the outsider’s i.e. public at large.

Private Limited companies are closely held companies. To invest into these companies, one needs to get in touch with the Directors, Promoters or the Shareholders of the Company as the shares of these companies are non-transferable unlike the shares of Public Limited Company. They need to be transferred by the existing shareholders and are not listed on a stock exchange.

A third party can invest in a Private Limited Company by way of

  • Equity shares: One needs to get in touch with the Directors, Promoters or the Shareholders of the Company as the shares of Private Limited Companies are non-transferable.
  • Debentures: Investment in debentures is the safest option, there are two kinds of debentures, convertible and non-convertible debentures.
  • Investment in the form of loans and advances: Private Limited Companies can only raise capital through private arrangements from its members, directors or their relatives etc.

Private companies are prohibited from inviting the public to subscribe for shares or debentures of the company and they cannot accept deposits from persons other than its members, directors or their relatives. So these Companies can only raise capital through private arrangements from its members, directors or their relatives, friends etc.

Getting an investor in the Company is an essential step for all businesses, Companies require external fund to cater to their growing requirements. However, an informed investor shall investigate into the working of the Company before lending the money. Investing in a Private Limited Company becomes advantageous due to various benefits offered by the said structure as well as the nature of the business.

Read more blogs: Private Limited Company

The investor needs to consider the following points for making an informed decision regarding Investment in a Company:

CONTROL: Control over the operations of the Company depends on the Shareholding ratio. The Shareholders having a stake in the Company can help direct the Company in the right direction. Shareholding enables an investor to make decisions for the company by availing the voting rights for the business to be transacted and conducted at meetings of members. Also where the investors are willing to take control over day-to-day working of the company, they have on option to appoint a representative in the Board called Nominee Director.

TAX IMPLICATION: Corporate tax is applicable on Private Limited Companies. The dividend on shares, if any, is given by the company to the shareholders is tax free in the hands of the shareholders.

MANAGEMENT: The investor has the option to take part in the day to day operations of the Company. If the investors are not willing to involve in the working of the company and have invested for profit only. It is not the obligation of the shareholders to engage in the day to day business activities and the same can be taken care by the Board of Directors of the company.

LIMITED LIABILITY: The investors are accountable for the amount held by them in the form of shares. This Limited Liability characteristic helps safeguard investors personal assets from loss made in the company. The risk of loss or failure of business is linked to the type of industry in which the company operates. Hence it safeguard the investors from extreme risk.

 INVESTMENT: As per the current trend, a start-up or a newly registered private limited company may run into losses at the initial stage of the operations. But the company may yield higher profit in long term. Investment here should be made after considering the Business Plan of the company in order to keep the risk at marginal level.

Conclusion: Investment decision in a Private Limited Company is ultimately based on the willingness of the investor. One needs to adopt a rational procedure before indulging in any project.

Read more blogs: Seven Steps for Private Limited Company Registration in Delhi

Frequently asked questions:


Who can invest in a private limited company?

Anyone can invest in a private limited company, but as Private Limited companies are closely held companies. To invest into these companies, one needs to get in touch with the Directors, Promoters or the Shareholders of the Company

Can a private limited company invest in another private limited company?

Yes, Private Limited Company invest in another private limited company

Can you invest in a private company?

Yes, one can invest in a private limited company, the process is covered in the above-mentioned blog.

How can a private limited company raise funds?

A private limited company raise funds through

  • Equity shares
  • Preference shares
  • Debentures
  • Investment in the form of loans and advances

Related Blog – Company incorporation in Dubai

Choose Your City For Company Registration.

Company Registration In Delhi

Company Registration In Noida

Company Registration In Hyderabad

Company Registration In Bangalore

Company Registration In Kanpur

Company Registration In Mumbai

Company Registration In Pune

Company Registration In Dubai

Company Registration In Hong Kong

Company Registration In China

Company Registration in dubai

HOW TO REGISTER A COMPANY IN DUBAI

Dubai is one of the lucrative spots amongst all regions in the United Arab Emirates (UAE). UAE is a federation of seven emirates lying on the North-eastern coast of Arabian Peninsula. In this globalised era, where every business does not just want to limit their customer base to the geographical location they are based out of, rather wants to take it to new heights by removing the geographical barriers it comes with.

Company incorporation in Dubai-

Incorporation in Dubai would definitely prove to be a progressive decision for your business but at the same time it is more challenging. When it comes down to the cost involved in company incorporation in Dubai and how it will be done in case you are not a local resident there and you are not well-versed with the local surroundings. This is when an experienced consultant comes into picture who will guide you throughout your journey of company incorporation in Dubai.

FORMS OF COMPANY INCORPORATION IN DUBAI

1.       On the basis of Jurisdiction

1.1.   On-Shore: An entity that is incorporated in its home land with the sole purpose of doing business activities within the specific jurisdiction. Various benefits associated with establishing an on-shore business such as favourable regulation, tax regulations, banking & support sectors.

1.2.   Off-Shore: Any entity which is formed in a foreign country which is managed outside the jurisdiction of the company.

1.3.   Free-zone: These are special economic zones which are setup to promote the business environment in Dubai by giving away certain additional perks to those planning to set-up their business in these regions.

2.       On the basis of ownership/holding

2.1.   Limited liability: Limited liability partnership is a form of business entity in which the liability of an individual is limited to its share in the capital. Under Limited liability Company, the liability of the shareholders is limited to their share in capital. Maximum 50 & minimum 2 members are required to register a company as Limited liability in Dubai.

2.2.   Sole proprietorship: For a foreign potential investors, the procedure for incorporation in UAE allows an investor to start a company without any UAE national being a partner in the company. However, the foreign investor must incorporate fee based service agent instead of a “sponsor” to sign important documents.

2.3.   Private limited: It refers to possession of a big business corporation firstly, by non-governmental organizations and secondly, by a relatively small number of holders who do not trade the stock publicly.

2.4.   Public limited: A company where the business capital is divided into equal shares, with each shareholder’s liability limited by their respective number of shares.

2.5.   Branch office: Location other than the head office or the registered office of the company, which acts as an additional office for operations of the company.

Now Register your Company In Hong Kong

WHY COMPANY INCORPORATION IN DUBAI?

·         Geographical location

·         Taxation benefits

·         Flexible business environment

·         Endless opportunity for entrepreneurs

WHY CAONWEB?

·         Company incorporation in Dubai could prove to be a hectic job unless you are well aware of the law which is applicable in the gulf region. This is where any business establishment needs a consultant who is having the required experience of company incorporation in the region.

·         We at CAONWEB has the most trusted and experienced professionals who have a decade long history of serving the clients.

·         Help our clients in selecting the most lucrative location for their business setup in Dubai.

·         Expertise in cross-border transactions.

 Now Register your Company In China

Dubai Company Registration (FAQ’s)

How can I register a company in Dubai?

There are various forms of company which can be incorporated in Dubai viz. On-shore, Offshore & Free-zone Company. There is slight difference in the company registration process of these companies but more or less their process remains the same.

Follow the steps for company incorporation in Dubai.

·         Define nature of business.

·         Choose a name for your company.

·         Check the jurisdiction under which your business will operate.

·         Apply for license with the authorities.

·         Attach all the documents necessary for company incorporation.

·         Review the share capital requirements.

·         Submit your application with the authorities.

What kind of business can I start in Dubai?

An individual can start any sort of business in Dubai, there is no restriction on type of business but the licensing process is different for different forms of business.

Legal forms of companies in Dubai

·         Sole proprietorship

·         Partnership firms

·         Limited liability company

·         Private shareholding

·         Public shareholding

·         Branch office

Types of Trade licenses issued in Dubai?

·         Commercial

·         Industrial

·         Professional

Now Register your Company In India  

How many jurisdictions involved for company incorporation in Dubai?

Majorly there are 3 categories under whose jurisdiction companies can be formed:

·         On-shore company

·         Off-shore company

·         Free-zone company

What is Dubai economy based on?

Primarily the economy of Dubai was based on its petroleum production but with the time Dubai has emerged as one of the most lucrative business destination because of the incentives Dubai is offering to encourage business on their soil.

Now every new entrant or an established company is planning to take their business overseas, most likely to Middle East (Dubai).

New Company Registration

How do I Register a New Company?

As per the Companies Act, 2013 all the Companies whether Private Companies, Public Companies or Non for Profit Organisations need to be registered with the Ministry of Corporate Affairs. As most of the founders are not aware of the basic legalities of setting up a new business, here is a guide to the most important question on how to incorporate a Company in India.

How do you register your company?

Initially, the entrepreneurs focus on their business idea, its viability, building a team, analyzing various prospects, creating a target market, etc. but the first and foremost thing to do is Company registration. As the Company would be the entity that would represent the founders of the promoters in the market.

GST Registration | GST Registration Process

The most important step in the Company registration process is to get the proposed name reserved for the Company. An ideal Company name is the one that is easy to memorize, register and pronounce. The proposed name should also reflect the business activity of the Company.

One needs to carefully choose the Company name as the domain name should also be available. While checking the availability of the proposed name of the Company one needs to also check the name availability on the trademark site.

The Ministry of Corporate Affairs has made the whole Company registration process online and simplified under the ease of doing business initiative, the name approval is a fast track service wherein one can get the name approved within 24 hours of filing the web form.

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Once the name is approved the next step is to obtain digital signature certificates. One can get their DSC’s made through government listed agencies, these agencies are verified by the Controller of Certification Agencies.

Digital signature certificates are issued with one- two-year validity and can be renewed once it gets expired. DSC is password protected as they are used for certifying various forms that are required to be filed with government departments.

Accounting & Auditing

The most important step is to prepare the relevant documents and file the incorporation forms with the Ministry of Corporate Affairs. One can take assistance from professionals or hire them for such Ca services. The incorporation forms are linked forms which contain the following:

  1. FORM NO. INC-32 (Simplified Proforma for Incorporating Company Electronically): As the name specifies it’s an integrated form which shall enable the applicant to file the following:
  2. Name of the Company
  3. Director Identification Number
  4. Incorporation Certificate
  5. PAN
  6. TAN

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  • FORM NO. INC-33 (e-Memorandum of Association): This form contains the main activity of the Company along with the details of the subscribers i.e. the shareholders of the Company and the amount of authorized capital.
  • FORM NO. INC-34 (e-Articles of Association): All the rules and regulations along with the procedures for holding meetings, transfer of shares, voting rights etc. are listed in the articles of the Company. It like a rule book that the Company has to abide with.
  • FORM NO. INC-35 (Application for Goods and services tax Identification number, employees state Insurance corporation registration plus Employees Provident fund organization registration): One can apply for GSTIN / EPFO / ESIC through the same form.
Company Registration

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Once these forms are filed and approved by the Ministry, the Incorporation Certificate is generated and hence the registration process is complete.

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Here are a few commonly asked questions:

Is one person company a private company?

Yes, One Person Company is a Private Limited Company, hence the Company name has the letters (OPC) in it.

Can one person company have employees?

Yes, there is no limit on the number of employees a One Person Company can have.

What is the fees for company registration?

The fee to incorporate a Company in India can fall in a price range of Rs. 5000/- to Rs. 12000.

How can I apply for Pvt Ltd Company?

The Company registration process is online, click on the to connect with professionals:- Company Registration

Which documents are required for company registration?

The following documents are required:

1) ID Proof ( PAN Card)

2) Any of the following proofs:

  • Adhaar
  • Voter ID
  • Passport
  • Driving License

3) Address Proof (anyone):

  • Electricity Bill
  • Telephone Bill
  • Bank Statement

4) Photograph of both the proposed Directors

5) Electricity Bill and Rent Agreement of premises

More Information to click here – CAONWEB

• Nidhi company registration in India

Nidhi Company in India – It’s Features, Advantages & Disadvantages

NIDHI COMPANY

  • Nidhi company registration in India is governed under section 406 of companies act, 2013. The word “Nidhi” is sometimes used in reference to a treasure/a fund i.e. the company incorporation with the primary objective of creating a habit of savings amongst its members.
  • Companies which are incorporated as Nidhi Company are primarily involved in borrowing & lending to members only. Nidhi Company is a form of Non-Banking Financial Institution (NBFC). Inculcating the habit of savings among its members, Nidhi Company works on the principle of mutual benefit of both the company and its member.
  • Since Nidhi companies are formed under the rules of companies act, 2013 therefore it is not required to take a separate license from Reserve bank of India (RBI), hence it is easy to get Nidhi Company incorporation rather than a bank.

FEATURES OF NIDHI COMPANY

  • Borrowing & Lending to its members: Nidhi Company cannot lend & borrow from outside its member community. Restricting the business area of company also reduces the chances of business collapse.
  • “Nidhi ltd.”: “Nidhi limited” must be added to name of the company incorporation if it is registered as a Nidhi company under companies act, 2013.
  • Share capital: Minimum equity share capital of INR 5 lakh is required for company incorporation as Nidhi Company. Once you have registered it as a Nidhi company, You cannot issue preference shares.
  • No. of members: Atleast 7 members must be there to start a Nidhi company. Out of these 7 members, 3 must be the full time directors of the company.

Read other blogs: ALL ABOUT COMPANY REGISTRATION IN INDIA

ADVANTAGES OF NIDHI COMPANY

  • Nidhi rules, 2014: According to the Nidhi rules as designed for the functioning of a Nidhi company, they are not allowed to deal with the funds of any person other than their members and the powers to impose certain restriction by RBI are limited.
  • Ease of formation: Unlike other NBFCs or scheduled banks, Nidhi Company does not have to obtain a license from RBI. They have to initiate the process of new company registration as a public company with MCA under the Nidhi rules 2014 and they can start the functioning of the company.
  • Channelizing savings: Nidhi Company gives an opportunity to all its members to start the borrowing and lending process once they become member of it. Promoting an environment of savings among a lower and middle section of society. These small sections can now contribute and avail credit from Nidhi companies.
  • Low credit rate: Lower rate of interest on loan which is offered to the members of the Nidhi Company than prevailing market rate. This brings greater confidence amongst the members and boosts the process of savings to the members.
  • Minimal outside intervention: Since Nidhi company offers the borrowing and lending facility for its members only. Therefore, outsider intervention is automatically reduced since an outsider does not actually have a say in the internal matter of the company.
  • Cost effective: Nidhi Company registration is a cost effective affair. Unlike a scheduled bank registration or a private company registration formalities involved in Nidhi company registration are minimal. The minimum capital requirement of Nidhi Company registration is INR 5 lakh where you have the opportunity to invest the capital within the 2 months after the company registration.

Read more blogs: COMPANY REGISTRATION MADE EASY & HASSLE FREE

DISADVANTAGES OF NIDHI COMPANY

  • Limited Fund Raising: Fund raising in a Nidhi Company is directly related with the number of members it have because a Nidhi Company can only accept deposits and lend only to its members which limits it source of raising funds. 
  • Limited credit availability: Limited fund with the company raises the concern of limited credit availability which ultimately beats the very purpose for which the Nidhi companies were established.
  • RBI vigilance: Although there are no strict compliances imposed upon the Nidhi company by RBI, still their activities are governed by the Reserve Bank especially their deposit acceptance operations.
  • Other Regulations: The central government issues rules and directions governing Nidhi Companies from time to time. Therefore, they are not totally exempt from the regulatory framework.

Now Register Your Company in Dubai