Start Up and Sweat Equity Shares
/ Business

Start Up and Sweat Equity Shares

A Start Up in common parlance means a project undertaken by entrepreneur seeking to develop a scalable business model. The Government of India in order to streamline and promote all such brain child ideas launched an initiative called Start Up India on 16th January 2016. It intended to build a strong network nurturing all the innovative ideas leading to massive wealth and employment creation. A Start Up can also be a newly established business but some of the parameters …

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Brief Analysis of TDS under Section 194Q
/ Taxation

Brief Analysis of TDS under Section 194Q

As per Section 194Q the buyer, whose turnover or gross receipts or total sales is exceeding Rs. 10 crores in a financial year immediately preceding the relevant financial year, shall be liable to deduct tax at rate of 0.1% on the value exceeding Rs. 50 lakhs at the time of: –

Section 194Q was introduced in the Budget of 2021-22 and has come into effect from 1st July, 2021. However, the CBDT has said that this provision would not …

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Share Allotment to Foreigners under FEMA/ Companies Act
/ FEMA

Share Allotment to Foreigners under FEMA/ Companies Act

Economic liberalization has resulted in robust growth over the years and has made India an attractive investment destination hub globally. COVID -19 pandemic has surely disrupted the growth chart but it is expected to regain the momentum soon making our country one of the fastest growing large economies. With an intent to promote foreign investment, Government has eased off the regulatory environment with a framework that is transparent and comprehensible.

Investment Route
Foreign Direct Investment (FDI) in India can be …

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Incorporation of Section 8 Company In India
/ Company Formation / Registration

Incorporation of Section 8 Company In India

In India a Non-Profit Organization can be registered in three ways particularly:-

> Trust: By executing Trust Deed and get it registered with the Registrar of Trust,

> Society: with Registrar of Societies

> Section 8 Company: By executed MOA and AOA and get it registered pursuant to Companies Act, 2013.

S. NO.PARTICULARSTRUSTSOCIETYSECTION 8 COMPANY
1.ManagementBy TrusteesBy a Committee or the Managing CouncilBy Board of Directors
2.Minimum Requirement
…
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Penalties under FEMA
/ FEMA

Penalties under FEMA

Foreign Exchange management Act, 1999 (FEMA) was passed on 29th December 1999 in Parliament replacing the Foreign Exchange Regulation Act (FERA). The new regime is made consistent with the framework laid down by the World Trade Organisation. FEMA enabled all cross border trades & payments and promotes orderly development of foreign exchange market in India.

Section 13 of FEMA lays down the Penal provisions. As per Section 13(1), if any person contravenes any provision or any rule, regulation, notification, …

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Application for Registration of Creation, Modification of Charge (other than those related to debentures) CHG-1
/ Company Formation / Registration

Application for Registration of Creation, Modification of Charge (other than those related to debentures) CHG-1

Filing of charge gives security and empower the charge holder that in case the Company makes a default for the repayment of the loan, then charge holder can get the claim amount from the security which was charged by the Company in favor of the charge holder.

Filing of Charge is necessary to secure the lender as well as to secure the third party, that, as and when any third party dealing with the same property it must be aware …

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/ FEMA

Compounding of contraventions under FEMA by RBI

The Foreign Exchange Management Act, 1999 (FEMA) is an act of the Parliament of India to consolidate and amend the laws relating to foreign exchange with the objective of facilitating external trade & payments and promoting the orderly development and maintenance of foreign exchange market in India.

Section 15 of Foreign Exchange Management Act (FEMA), 1999 empowers Reserve Bank of India to compound any contravention made under Section 13 of FEMA, 1999 except the contraventions under section 3(a).

Compounding refers …

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Export of Services and Implications under GST/ FEMA
/ FEMA

Export of Services and Implications under GST/ FEMA

The term Export generally refers to Exports of Goods but that reference is a passé now. Export of Services is the emerging trend as it widens the scope of exports, bringing in the diversification and increasing India’s Foreign Exchange Earnings. The Indian Economy has witnessed a major boost in the last decade in the services sector.

India has emerged as the fastest growing nation in global services trade. It remained among the top 10 trading countries in commercial services in …

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All About One Person Company (OPC)
/ Company Formation / Registration

All About One Person Company (OPC)

One Person Company

SECTION 2(62): ‘One Person Company’ means a company which has only one person as a member.

Who Can Be Member Of OPC?

Rule 3 of Company Incorporation Rules, 2014
Only a natural person who is an Indian citizen [whether resident in India or otherwise].

Points Which Must Be Kept In Mind While Registering OPC.
1. Such Company cannot be Incorporated or converted into a Section 8 Company.
2. An OPC cannot carry out NBFC related activities and …

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Export of services under GST
/ Goods and Services Tax (GST)

Export of services under GST

The Government is always concerned about the country’s exports and therefore, they are pretty keen to pamper the exporter by incentivizing and providing certain privileges to them. On the other hand, it is the utmost duty of the government’s department to curb down the fraudster who pretend to be the exporter and defrauding the revenue by their illicit activities. Below are the provisions in GST related to export of service.

As per section 2(6) of IGST Act, 2017, “export of …

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