Neeraj Bhagat & Co. - Page 6 of 25 - Chartered Accountants

January 1, 2021 / FDI

Review of Foreign Direct Investment (FDI) policy in defense sector

The Government of India has reviewed the extant FDI policy in Defense sector. Now, FDI up to 74% under automatic route shall be permitted for companies seeking new industrial licenses. Infusion of fresh foreign investment up to 49%, in a company not seeking industrial license or which already has Government approval for FDI in Defense, shall require mandatory submission of a declaration with the Ministry of Defense in case change in equity/shareholding pattern or transfer of stake by existing investor …

January 1, 2021 / Others

FCRA Squabble: Experts bat For rationalization Of admin expenses

Views of our Founder, Mr. Neeraj Bhagat on FCRA Amendment Bill published in Business World

However, Neeraj Bhagat, a Delhi-based reputed tax consultant and the head of his own Chartered Accountant firm has a different take. Bhagat said: “It will minimize the illicit and fraudulent usage of overseas funds. Moreover, inclusion of public servants in prohibited list under section 3 will significantly address the ills and reduce corruption in the economy,” said Bhagat.

Overseas direct investment without remittance of funds from India

An investment outside India can be done by an Indian party or an individual or (single or in association with another resident individual or with an ‘Indian Party’). All resident individuals, including minors, are allowed to freely remit up to USD 250,000 per financial year.

An Indian Party can make overseas direct investment in any bonafide activity. However, Real estate and banking business are the prohibited sectors for overseas direct investment. But, Indian banks operating in India can set up …

January 1, 2021 / Business

Companies fresh start scheme, 2020 –one time last opportunity to get rectify non-compliances

The MCA on 30th March 2020 launched a compliance relaxation scheme namely, Companies Fresh Start Scheme, 2020. The Scheme was formulated to provide opportunities to companies to make good of any filing default, and make a fresh start as a fully legally compliant entity. The crux of Schemes is to provide a one-time waiver towards payment of additional filing fees by companies with the Registrar of Companies during the term of the Scheme, i.e.: from 1 st April 2020 to …

January 1, 2021 / Taxation

Valuations and Taxation aspects for start-up

VALUATION OF SHARES FOR COMPANY REGISTERED UNDER STARTUP INDIA WITH MINISTRY OF COMMERCE & INDUSTRY: –

Valuation of equity shares is generally required for regulatory or financial reporting purposes for a business. In valuation of shares, the underlying asset is the business and per share value is calculated to arrive at the final valuation.

Methods of Valuation to be followed by Registered Valuers for a Startup Valuation:
There are several commonly used and accepted methods for determining the fair …

January 1, 2021 / Business

Startup and Sweat equity shares

Startup: Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities.

Who can be registered as Startup?

Private Limited Company
Registered Partnership Firm
limited liability partnership (LLP)

Note: – 1. An entity is eligible to be recognized as start upto a period 10 years from the date of incorporation.

2. Startup …

January 1, 2021 / Business

ESOP vs Sweat equity shares

An employee is the key of the success of every organization and every employee deserves to be compensated for the efforts made by them to make the organization successful in the competitive market and the issue of Sweat Equity shares and ESOP is the best way to compensate them also in order to motivate the morale of the employees and also to retain them for long term, Companies opt following modes of issue:

“Employee Stock Option’ (ESOP) has been …

January 1, 2021 / Business

Comparison between Liaison office, Project office & Branch office

Liaison Office
Companies incorporated outside India can open ‘Liaison Office’ (also known as representative office) in India. Liaison office is a place of business to act as a channel of communication between the principal place of business or Head Office. The Liaison office can undertake only liaison activities, it is not allowed to undertake any business activity in India and cannot earn any Income in India. The activity of the Liaison office can be better undertaken with the aforesaid …

January 1, 2021 / Business

Recognition and benefits for startups including tax benefits

Startup India Scheme is an initiative by the Government of India under leadership of Mr. Narendra Modi for generation of employment and wealth creation. The goal of Startup India is to develop and innovate products and services and increase the employment rate in India.

To promote growth and help Indian economy, many benefits are being given to entrepreneurs establishing startups.

Department for Promotion of Industry and Internal Trade (DPIIT) considers an entity as a startup only up to a period …