Author: Gapeseed Consulting

Simple Tips to Design a Salary Structure for an Employee

Having an absolute salary structure makes it easier to manage your salary expenditure. Not to mention, it can help you retain your current employees, as well as make your recruiting, hiring and promoting efforts more focused and easier to execute.

If you’re considering creating a salary structure, here are a few tips to help you get started.

Benchmark jobs

It should start from here, you need to know the value of each position you offer in your organization. Know the market, know your competition and see what others are paying for similar jobs. There are a variety available salary survey sources that can provide you with data related to salary information for various positions and different industries. You could easily know about benchmark jobs, but this mostly works out for jobs in which duties and responsibilities are generally defined. Once you have identified the benchmark jobs you can compare the market rate according to your budget, you could use statistical procedures to plan it up. Or you can simple get in touch with our HR department.

Consider company’s competitive position

The competitive position of company is its overall salary level compared to market average when compared with the benchmark jobs. This helps you answer if the salary rates for your employees currently above, below or comparable to the rates of your competitors. You should decide what competitive position suits best to your company. Some other things which could be solved by doing this could be if you need to pay at a higher-than- market level so to retain your current employees? Pay according to the market level which attracts better quality candidates or pay according to your budget.

Set-up compensable leverage

Compensable leverage refers to how much more or less salary rate increases in your company, overall, compared to the market rate increase for higher-paid positions in the organizational hierarchy. See this for an example, when employees are promoted to a higher position within the organization, will they receive an increase in salary rate that is similar to, greater than or less than the rate increase provided, on average, in the market. It’s important to determine the desired compensable leverage for your company. This will allow you strike a balance between providing attractive salary increases to employees for promotional opportunities and maintaining an affordable salary practice.

Develop a salary structure

Now that you have the data from the market and your internal and external resources together using this information, you can develop the salary structure for your company. You should also decide if you want to offer a specific salary range – with a minimum and maximum rate – for each position, or if you want to create pay grades in which multiple positions with similar market rates are grouped together within the same range.

Get your current employees up to par

Once you have established a salary structure, possibly with pay grades, then you’ll want to look at your current employees’ salary rates compared to the range to see if anyone is being paid below the minimum rate or above the maximum rate. This involves determining whether the salary rates of any employees should be adjusted to achieve market alignment to have competitive position as created through the structure. If an employee is being paid below the range minimum, it’s recommended that you increase the salary rate, either immediately or incrementally over time, until it hits the minimum rate. If an employee is being paid above the range maximum then it’s recommended that you suspend the person’s next salary increase until market movement warrants an adjustment.

Sometimes these practices are acceptable if the positions in question have a significantly greater or less of strategic importance to an organization than it has to competitors. You’ll want to do a systematic analysis of all of these things mentioned in above steps. This will help you have a good basis for creating your salary structure.

If you would like to get your organization’s salary structure in place feel free to drop us an email at info@gapeseedconsulting.com or you can also call us +91-9599444630 else drop us a line here.

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International Taxation Consultancy

Once you have set your business and are on the stages of expanding it many of the entrepreneurs wonder whether they should make foreign investments or operations or not.  When it comes to an international market operation things get a bit complicated as it creates a variety of structures at the same time you need to select the right tax advisor that has competency in that particular commercial area. The boundaries of international taxation has been increasing this is where the international taxation consultancy is require who can tackle all the compliances related to international taxation.

We at Gapeseed Consulting provide all required services which give all the solutions related to International Taxation Consultancy, we can help you understand your tax situation; you must first work out whether you are an Indian resident for tax purposes. Indian residents are generally taxed on their worldwide income from all sources. Foreign residents are generally taxed only on their Indian-sourced income, such as money they earn working in India.

Some of the services we offer are:

Transfer pricing planning and documentation:

Tax authorities are everywhere and are always eager to get revenue, not only that but they are imposing new, stricter transfer-pricing documentation requirements on companies – and sharply escalating audits and inspections – with significant penalties for non-compliance.

Meanwhile, as you expand your operations to compete on an international scale, your cross-border transactions – sales of goods, provisions of services, licensing of intellectual property, lending of funds, etc. – will continue to grow in frequency and complexity.

At Gapeseed Consulting we understand the increasing globalisation, faced with increasingly burdensome compliance globally. In many businesses a new sense of urgency about maintaining effective and consistent transfer pricing documentation across all tax jurisdictions in which they do business.

Dispute Resolution:

Our international taxation consultancy tax dispute resolution network assists taxpayers in this emerging area. We can work with you to efficiently manage, and favourably resolve tax audits and disputes throughout the world. We have tax specialists to assist our clients in virtually every area of dispute. We combine deep technical understanding, local knowledge and strong relationships with government officials, tax litigation experience, and a global perspective to provide you with best of the services.

Advance pricing agreement:

We can help your company to obtain advance pricing agreement covering a broad range of intercompany transactions. We have our professionals who hail from industry, and with foreign governments—including senior-level positions in governmental agencies responsible for administering advance pricing agreement.

We can work with you to develop strategies at both the global and local level, and guide you through the process of requesting advance pricing agreement to help you ensure successful outcomes.

Intellectual property valuation:

Our experienced team of IP and intangible asset valuers apply commercial valuation principles and adopt a range of complex valuation methodologies to produce robust analysis to assist in negotiations, decision making, legal disputes and investment analysis.

We have in-depth sector experience across a broad range of industries and are therefore familiar with working alongside marketing, sales, technical and research staff to gain a deep insight into the subject IP.

Our services include:

Valuing a brand or other IP in relation to a potential sale or licensing agreement. Considering the value of brand, technology or other assets in the context of a contribution to a joint venture or alliance. Valuing IP / intangible assets for financial reporting purposes under international, US and UK accounting standards. Providing independent valuations of IP for commercial disputes or expert witness reports. Assessing the market value of IP/intangible assets for tax purposes.

If you would like to know more about our international taxation consultancy for your businesses you can drop us a line here or, call +91-9599444639/+91-9599444630

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Online Tax Filing

The forms for the (ITR) Income Tax Return for Financial Year 2015-2016 i.e. Assessment Year 2016-2017) have been released by the Income Tax Department. These are applicable for your income tax
return for income earned from 1st April 2015 to 31st March 2016.

If you’re looking forward to get some assistance on filing your Income Tax Return Gapeseed Consulting can help you with knowing different ITR Forms and filing the same. You could read more on our website here.

To figure out which ITR you need, read below to know more.

ITR-1

The following people need this return form whose total icome for the assessment year 2015-2016 include

  • Income from Salary/Pension
  • Income from One House Property
  • Income from Other Sources which does not include Winning from Lottery and Income from Race Horses

Who cannot use this Return Form

If you own any asset for any financial interest or have an account located outside India you cannot use this return form also if you have exempt income which is more than Rs. 5,000, you cannot use ITR-1.

ITR-2A

This tax return form can be used under the given condition:

  • Income from salary and has more than one house property but does not have any capital gains.
  • People with long term capital gains securities on which transaction tax is paid.
  • NRIs if they do not have any foreign assets.

If you fall under any of the category below you cannot file through ITR 2A

  • If income is from capital gains
  • Income from Business
  • If you have claim of relief/deduction under section 90, 90A or 91
  • If you have any asset which lies outside India.
  • If you have an earning source outside India.

ITR-2

If you lie under the category of Hindu undivided family you need to file your tax by filling up ITR-2 under the following circumstances:

  • If the Income is from Salary/Pension
  • Income earned from house property
  • Income from Capital Gains
  • Income from Other Sources which includes winnings from Lottery and income from Race Horses.

The Return Form should not be used by an individual whose total income for the assessment year 2015-16 includes Income from Business or Profession or if you receive remuneration as a Partner in a Partnership Firm or LLP. If you lie among anyone if the following categories you need to declare these types of incomes under ITR-3, ITR 4 or ITR-4S.

ITR-3

This Return Form is to be used by an individual or an Hindu Undivided Family who is a partner in a Partnership Firm or LLP and where income chargeable to income-tax under the head, profits or gains of business or professional does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to or received by them from such firm.

Only this form is to be used in case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm and not Form ITR-2.

If your total income is from Business or Profession under any proprietorship then this Return Form should not be used.

ITR-4S OR SUGAM

This Income tax Return to be filed by individuals, HUF and small business taxpayers having presumptive business income, salary/pension, one house property or income from other sources.

You cannot use this form if the individual has more than one house property, speculative income, agriculture income more than Rs 5000, capital gains.

ITR-4

For individuals and HUFs having income from a proprietory business or profession.

ITR-5

For firms, LLPs, AOPs (Association of persons) and BOIs (Body of Individuals)

ITR-6

For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes)

This return has to be filed electronically only.

ITR-7

For persons including companies under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).

    • Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
    • Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable to income-tax.
    • Return under section 139(4C) is required to be filed by every
      1. scientific research association;
      2. news agency ;
      3. association or institution referred to in section 10(23A);
      4. institution referred to in section 10(23B);
      5. fund or institution or university or other educational institution or any hospital or other medical institution.
    • Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.

Click here to drop us a line if you have any questions regarding tax filing online.

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Tax Accounting Services for start-ups and small businesses

Tax accounting for start-ups and small businesses has started to be regulated due the increase in number of start ups and small businesses which has scrutinised the regulatory norms this has also brought up many other flaws in the system of other companies.

The change in the environment of tax accounting services has been constantly changing and growing which has brought upto a situation where tax laws have evolved which has rapidly impacted the tax planning as well as the tax preparation. This has made impact on the company’s financial reporting.

At Gapeseed Consulting we offer our client Tax accounting services to start-ups and small businesses. We can help to make changes in the way of tax planning and reporting which helps in increased efficient results at quarter-end and year-end. Apart from this at Gapeseed Consulting we offer other accounting services which can help you manage your taxes and business better like Bookkeeping services where we specialize in budgeting and account reconciliation and will actively balance your books. We offer payroll services as well in which we’ll take the payroll process off your plate and ensure you are always compliant. The services provided by us for tax accounting to start ups and small businesses are as follows.

    • Tax provision outsourcing and support:Many companies continue to struggle with the appropriate amount of internal tax resources to employ. Some companies want to own the entire tax function, while others want an experienced tax firm to be entirely accountable and responsible for their tax needs. Some want a mix of both. For more than two decades, Gapeseed Consulting has developed and delivered the people, process, and technology to provide an integrated, cost-effective approach to operating tax departments. Clients in industries such as life sciences, retail, manufacturing, banking and utilities have realized the benefits of Gapeseed Consulting tax accounting services.
    • Accounting for uncertain tax positions assessments:We help clients minimize the risk of forfeiture and maximize future benefits via a wide range of tax process and operations management solutions. We design, transform, and run intelligent operations that provide comprehensive tax compliance support for corporate and transactional taxes. In addition, we prepare premium tax returns for insurance businesses, assist in VAT filings and associated reconciliations property tax returns, and provide information.
    • Actively Managing Your Tax Department:Our tax department outsourcing services also include managing and assisting with operational matters that arise on a day-to-day basis such as establishing procedures and reporting practices, proactively communicating with company management, maintaining a corporate tax calendar, and assisting with examination support. Gapeseed Consulting establishes effective communication protocols, serves as a tax liaison to external auditors, and responds to tax inquiries from internal business units.
    • Tax Preparation:It can be a tedious task to prepare your own tax return which might even leave you with more doubts. We constantly check and recheck your tax returns our teams plans up the filing either offline or efiling which will help you get your refund back quicker. Combined with our payroll services we can help you with the withdrawal which can help you get more money back and low interest loans. In addition we will help you with a sheet of commonly overlooked deductions to limit the year’s tax liability.
    • Tax Planning: Planning is the key to successfully and legally reducing your tax liability. We go beyond tax compliance and proactively recommend tax saving strategies to maximize your after-tax income. We make it a priority to enhance our mastery of the current tax law, complex tax code, and new tax regulations to help our clients with the latest trends.Businesses and individuals pay the lowest amount of taxes allowable by law because we continually look for ways to minimize your taxes throughout the year, not just at the end of the year.

If you would like to know more about our tax accounting services for start-ups and small businesses you can drop us a line here.

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Union Budget 2016-17, Keypoints for Startups

In continuation to our previous blog on what the government has in bag for the startups this blog will take you through what the budget has which can help you make your startup successful.

Overview

With so many startups coming up now and then, the government has now realized that how significantly it can drive our social and economic growth of the nation. This has resulted into coming up with initiatives likes Digital India, Make in India, and Start Up India, Stand Up India.
In the Union Budget 2016-2017 though it has emphasized on different key areas like Agriculture, Rural Development and Infrastructure etc. but it didn’t stand up to the hopes of the entrepreneurs There is uncertainty whether union budget 2016-2017 would truly help India to startup and stand up?

Let’s start with what the government had in for the startups

According to the government notification, an entity will be identified as a startup.

  • A time upto five years from the date of incorporation.
  • The turnover has to be less than 25 crore in the last five financial years.
  • It is working towards innovation, development, deployment, and commercialization of new products, processes, or services driven by technology or intellectual property.

Compliance Regime based on Self-Certification

  • Compliance pertaining to 6 labour & 3 environmental laws will be allowed to be self-certified through the Startup mobile app.
  • No inspections will be carried out under labour laws for a 3 year period.
  • Startups classified as White Category as defined by the Central Pollution Control Board will be allowed self-certification under environmental laws, with only random checks proposed.

Relaxed Norms of Public Procurement for Startups

In order to provide an equal platform to Startups (in the manufacturing sector) vis-à-vis the experienced entrepreneurs/companies in public procurement, Government shall exempt Startups(in the manufacturing sector) from the criteria of “prior experience/turnover” without any relaxation in quality standards or technical parameters. The Startups will also have to demonstrate requisite capability to execute the project as per the requirements and should have their own manufacturing facility in India.

Funding Support through a Fund of Funds

Corpus of INR 10,000 crore: Initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore over a period 4years (i.e. INR 2,500 crore per year).

“Fund of Funds”: The Fund will be in the nature of Fund of Funds, which means that it will not invest directly into Startups, but shall participate in the capital of SEBI registered Venture Funds.

Credit Guarantee Fund for Startups

Credit Guarantee Fund would help flow of Venture Debt from the formal Banking System.

Corpus of INR 500 crore per year for the next four years: In order to encourage Banks and other Lenders to provide Venture Debts to Startups, Credit guarantee mechanism through National Credit Guarantee Trust Company (NCGTC)/SIDBI is being envisaged with a budgetary Corpus of INR 500 crore per year for the next four years.

Tax Exemption on Capital Gains

The Union Budget 2016-17 gave effect to the proposal made under the Action Plan with tax exemption regard capital gains as follows:

  • Long term capital gains tax exemption: New Section 54EE inserted to provide long term capital gains tax exemption if capital gains proceeds are invested by an eligible tax payer in units of specified fund to be notified by the Central Government, subject to conditions. The maximum investment allowed upto INR 50 lakh.
  • Budget proposes to amend Section 54GB to provide long term capital gains tax exemption arising on account of transfer of a residential property if such capital gains are invested in an eligible startup by way of subscription of share subject to the tax payer holds more than 50% shares and utilizes monies to purchase new asset. Further, the Budget proposes to amend the expression “new asset” to include computers or computer software in case of technology driven startups.

Tax Exemption to Startups for 3 years

The Union Budget 2016-17 gave effect to the proposal made under the Action Plan with regard to tax exemption to Startups for 3 years as follows:

New Section80-IAC inserted in the Income Tax Act, 1961 to provide 100% deduction of the profits and gains derived by an eligible startup from a business involving innovation development, deployment or commercialization of new products, processes or services driven by technology or intellectual property, for 3 consecutive years out of 5 years beginning from the year of incorporation. The said benefit is available to an eligible startup setup before April 2019. However, MAT will apply.

Tax Exemption on Investments above Fair Market Value


Purpose: To encourage seed-capital investment in Startups
Investments made by incubators in Startups proposed to be insulated from the rigors of Section 56(2)(viib) of the Income-tax Act, 1961. Any consideration received by Startups for issuance of shares over FMV to incubators, not to be taxed in the hands of the Startup.

Startup India Hub: The govt. would create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.

Rolling-out of Mobile App and Portal

The App shall be made available from April 01, 2016 on all leading mobile/smart devices’ platforms to provide the following services:

  • Registering Startups with relevant agencies of the Government
  • Tracking the status of the registration application and anytime downloading of the registration certificate.
  • Filing for compliances
  • Collaborating with various Startup ecosystem partners
  • Applying for various schemes being undertaken under the Startup India Action Plan

Legal Support & Fast-tracking Patent Examination

Startup Intellectual Property Protection (SIPP) scheme will be introduced on a pilot basis for a one year period to facilitate filing of Patents, Trademarks and Designs. The scheme would include:

  • Fast-tracking patent application.
  • Setting up a panel of “Facilitators” who will advise on different Intellectual Property Rights (“IPR”)

Are bate of 80% on patent filing fees vis-à-vis other companies is proposed.

This was a quick synopsis which is useful for the startups or those who are planning to startup. Incase, you seek any further clarity or recommendations on your startup, feel free to write to us at, info@gapeseedconsulting.com

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Start Up India Stand Up India Scheme

Now that you have been following our posts for so long, we would like to inform you about the
latest schemes regarding Start-Up India initiated by our government. This information might be of some use to you… On 5th April PM Modi officially launched one of the schemes in Noida. The official portal has been set up. Now it has become even easier for you to get detailed information regarding the Start up India plan. The portal was made live on April 1 2016. You can find all the information regarding the enrolment into the scheme which includes the online application forms, how to apply for loan etc. To simply know the working just navigate to the “Action plan” on the portal. For all latest notifications, you can navigate to “Notification” Section. A pdf file containing the list of incubators can be downloaded by interested applicants. For List of SEBI Registered funds, you can Visit HERE. If you have any queries regarding the “Start-up India Scheme” you can make use of the official Contact Us Page.

The whole world witnessed the launch of an ambitious programme in India on 16th January 2016.
The launch event took place in Vigyan Bhawan, New Delhi. Many of you still might not be clear about the goal, highlights and features of Start-up India programme but through this article you can find all the available information regarding the same. So if you have queries like – What is Start Up India Stand Up India Scheme ? Who can Apply ? How to Apply ? Application Form downloads etc, read the given information for the answers.

The economy of any country depends on its countrymen. Larger the number of employed or working
people, better be the economy. The Indian government has realized that Indians have great
potential when it comes to ideas; all they need is a promising opportunity or maybe a kickstart. Many people dream of starting up their own business, but due to financial or lack of opportunity they are unable to do so; hence Indian govt in the leadership of Mr. Narendra Modi has decided to offer a gift as a nation wise program- “Start Up India”.

Mr. Narendra Modi in his speech acknowledged that Indians have ideas and capability, all the need is a little push.

“Start Up India” is a revolutionary scheme that has been started to help the people who wish to start their own business. These people have ideas and capability. The government decided to give them support to make sure they can implement their ideas and grow. Success of this scheme will eventually make India, a better economy and a strong nation.

Start Up India Scheme – From Job Seekers to Job Creators

Technology is evolving with a pace faster than ever. This has given birth to various new businesses like E-commerce, internet marketing etc. giving a great scope of development in such areas. Those who plan to start new business are eligible to apply. Gapeseed Consulting knows that setting up a business has its own constraints – forming a company, taking approvals, taking care of legal compliances and registration etc. It isn’t a cakewalk for others but it is definitely easy for our clients. We will walk you through all the steps required for your Start-up.

During his speech at the event, Mr. Modi said that they are trying to make the youth Job Creators, rather than Job Seekers. He also said that one’s mindset should not be towards earning money in the initial phase, it should be rather on grabbing and using the opportunities.

Start Up India Stand Up India Scheme – Action Plan in Detail and How Gapeseed Consulting can do it for you.

  • E- registration has to be done. The application forms for start-up India are made available in
    April 2016.
  • A self-certification system has been launched.
  • A dedicated web portal and mobile app will be developed.
  • Arrangement of self-certificate based compliance.
  • No inspection during the first 3 years.
  • 80 percent reduction in the application fee of start-up patent.
  • Easy exit policy.
  • Inclusion of Credit Guarantee Fund.
  • Relaxation in Income Tax for first three year.
  • Special Arrangement for Female applicants.
  • Introduction of Atal Innovation Mission: Innovation courses will be started for the students.

As per the sources, the online application forms will be launched this month in April 2016. Interested applicants need to provide the required details in the application form. We will help you review you application so as it doesn’t get rejected.

For further queries and to know more about the Start-up India initiative, you can drop us a line here or feel free to send in an email to info@gapeseedconsulting.com

Gapeseed Consulting will be more than happy to help you setting up your own business.

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PROCEDURES and DOCUMENTATION FOR STARTUPS

E-FORM INC-32

PROCEDURES and DOCUMENTATION FOR STARTUPS

Now that you have an understanding about the launch procedure and also in ascertaining the best
suitable option for your start-up idea. This post will help you understand the procedure for Formation/Registration/Incorporation of Private and Public Company in India. Also Detailed Documents required for the same can be found here.

Whether you are just starting a business or incorporating a business already in existence, it is helpful to know and understand the formation and ongoing requirements each state places on corporations and limited liability companies. Incorporation / Formation of company involve a number of steps. We have tried to simplify the procedure to the maximum extent possible in the following steps

Step 1: Digital Signature

The basic step to company incorporation is to get DSC made of all directors. The Information
Technology Act, 2000 provides for use of Digital Signatures on the documents submitted in
electronic form in order to ensure the security and authenticity of the documents filed electronically. This is the only secure and authentic way that a document can be submitted electronically. As such, all filings done by the companies under MCA21 e-Governance programme are required to be filed with the use of Digital Signatures by the person authorised to sign the documents. To know the names of Certification Agency (CA) from where DSC can be acquired refer to our Free Guide.

Step 2: Acquire Director Identification Number

INCOME TAX PAN IS MANDATORY, so before applying of DIN a person must have his PAN number.
Details on PAN and DIN must be same. Step by step process to be followed by the applicant can be found in our resource section.

Step 3: Register DSC

Third step is to register DSC of the person authorized to sign E-forms on MCA21 or if you want us to do it for you drop us a line here.

Step 4: Apply for Reservation of Name [S.4(4)]

As per section 4(4) of Companies Act, 2013 read with rule 9 of Companies Incorporation Rules, 2014, application is to be made to registrar for reservation of name. 6 names can be proposed after checking its availability at MCA21 and as per guidelines given in the said rules and the procedures & documents required to be attached to INC – 1 are also available in the resource section.

Step 5: Drafting and Printing of Memorandum and Articles of Association

A public company limited by shares may adopt all or any of the regulations contained in model
articles of association registered along with its memorandum of association. The memorandum and articles shall be in conformity with the provisions of Section 4 and 5 of the Companies Act 2013. Read more here.

Step 6: Filing of Company Incorporation form – eform INC 7, DIR 12 & INC 22

As per Rule-12 of Companies (Incorporation) Rules, 2014, application for incorporation of a private and Public company, with the Registrar, within whose jurisdiction the registered office of the company is proposed to be situated, shall be filed in Form no. INC 7 [Rule 12 to 18] along with Form no. INC.22 for situation of registered office of the Company, (as the case selected in form no. INC 7) and DIR -12. There is a list of documents to be filled for Filing of company incorporation form get in touch with us to know it all.

Step 7: Filing of Commencement of Business – eform INC 21

On registration, a company cannot commence business or exercise any borrowing powers until it
files a declaration by directors in Form INC – 21 to the effect that every subscriber to the
memorandum has paid the value of the shares agreed to be taken by them as specified in section
1(1)(a).

E-form INC.21 is required to be filed with concerned Registrar of Companies for obtaining approval for commencement of Business and exercise of borrowing powers. This E-form is required to be filed by all companies incorporated under Companies Act 2013.

To know about the Procedure for commencement of Business under Companies Act, 2013 check out
our resources.

We hope that this post helped in understanding the procedures and documentations requirement
for your start-up. In case if you have any query about our startup series or services that we offer, please send in an email to info@gapeseedconsulting.com

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Basics For Incorporating A Startup

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Basics For Incorporating A Startup

Now that you have understood the basics of CFO Services for Startups and the Payroll Services and the advantages of payroll for startups, our blog 3 in the series is all about Incorporating a startup, the options and categorization as sanctioned by the Ministry of Corporate Affairs.

To help you understand the requirements, following are the types of Incorporation as laid down by the Ministry of Corporate Affairs and other government authorities in some cases. Anyone who is interested in Incorporating a Startup can choose to launch business from the following categories:

1. One person Company

Anyone can incorporate “one person company” as a corporate body. He or she is only one entitled shareholder and Director of the company. The pre-conditions for one person company include:

  • Shareholder and Director Must be citizen or resident in India
  • Only One Director at a time
  • Nominee for shareholder is must

If you are planning of incorporating a startup which is home run, family run or service oriented you can probably begin with one person company and once you get established you can think of expansion.

2. Private Limited Company

A private limited company is the one with two directors and two shareholders. This is the basic requisite to incorporate private limited company. The maximum number of members in a private limited company can be 200. Company cannot invite general public to subscribe its shares or debentures. A private limited company can

  • Register with MCA as body corporate
  • Business governed by board of directors
  • Limited liability of members
  • Can not accept deposit from Public

People incorporating a startup which involves product, delivery and revolves around mass consumption or even which involves a number of stakeholders involved from the beginning should go for private limited company. This adds credibility to your idea at the launch stage itself.

3. Limited Liability Partnership (LLP)

LLP is a corporate structure that combines the flexibility of a partnership and the advantage of limited liability. Owing to flexibility in structure and operation, it would be useful for small and medium enterprises, in general and for the enterprises in service sector professionals.

  • It is body corporate and legal entity separate from its partners
  • Limited liability of partner.
  • Minimum two partners
  • On LLP, the Partnership Act 1932 not applicable.

There are pros and cons attached but entrepreneurs who are in the process of incorporating a startup which involves further licensing and compliances with other government authorities opt for LLPs. This is mostly a preferred option for startups entering the BFSI sector.

How we can help as an Agency for Setting Up a Business in India

Gapeseed Consulting Pvt Ltd is a financial services company with a team of experts coming from the Accounting and Legal backgrounds. Startups usually have reservations with the set of services, registration protocols etc and they find it complex to execute. We are here to simplify business functions and thereby multiplying the possibilities.

Our set of services include, Incorporation, Accounting, Tax and Company Law compliance, consulting, drafting agreements, Payroll and CFO Services.

Financial Services for Startups

The challenge to startups is not just to manage and grow business, it is also about managing in the right way. Entrepreneurs need advice on regular basis so that all compliances are met right from the day of incorporation of business.
We at Gapeseed Consulting provide virtual CFO Services to support your business. We understand that Startups usually do not hire a senior Chartered Accountant or Finance Professional at initial stage because it is very difficult situation for entrepreneur and Senior Financial Professional to do full time job in Startup. Therefore Virtual CFO Services is win-win situation for both.

Virtual CFO or Interim CFO Services in Delhi from Gapeseed Consulting can offer the follow-ing solutions:

  • Business Plan
  • Investor Relations
  • Financial Analytics
  • Budgeting and forecasting.
  • Cash Flow Management
  • Board & Management Reporting
  • Accounting Team Search
  • Transaction Accounting

Gapeseed Consulting has also launched Financial Services Startup Packages to make it more suitable for the startup requisites.

Allied Services

One of our startup client who will be soon celebrating their first anniversary felt dramatically low at a point when they realized about the compliances and regular taxation norms. Apparently those were nor considered at the planning stage and hence they felt the pressure to perform as per law & guidelines.

Since we had helped them with the Registration process, they asked for our help and Gapeseed Consulting readily deputed our in-house chartered accountant Mr.Jain as the Interim CFO to manage the Liquor Import Compliances for Incorporating a Business in India while setting up a business.

Some of our basic allied services include the management of compliance, taxation and other procedures that include:

  • Tax Deducted at Source- TDS is to be deducted by company at the time of booking or making payment exceeding prescribed limits. TDS to be deposited every month before 7th day of next month. TDS return is to be filed quarterly before 15th of each quarter.
  • Service Tax- Presently Service tax rate is 14%. Service Tax is to be deposited before 6th day of every month by company and before 6th of every quarter in case of individuals. Return is to be filed half yearly.
  • Advance Tax- Advance tax is to be calculated every quarter and to be deposited by company before due date. It is payable before 15th June, 15th Sep, 15th Dec and 15th March.
  • Income Tax Return- Income Tax Return is to be filed annually after accounts are adopted by Board and Audited by Chartered Accountant” – we provide help to startup prepare complete accounts so that auditor can audit without any problem. We provide all information, details required for audit.
  • Transaction structuring/ Opinion – Our experts give opinion on transaction structuring on any matter of accounting, taxation, debt or equity.
  • MCA Filings- Returns to be filed with MCA for shifting of registered office, change in directors, increase in share capital, filing of Board and EGM/AGM Resolutions.
  • RBI matters for filing FCGPR, or any other matter.
  • Drafting Shareholders Agreement and Debenture Agreement for Private Limited Companies.
  • Drafting of contracts, patent and trad mark registration and other services

We hope that this post helped in understanding the launch procedure and also in ascertaining the best suitable option for your startup idea. Our next post will be around the documentation that is required to complete the registration process for a startup or new business.

In case of any query pertaining to startup series or services that we offer, please send in an email to info@gapeseedconsulting.com

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Payroll Services for Startups

Our love for startups is forever increasing. And with our experience of working with them, we have realized that, Startups are natural rule breakers you got to come out of that comfort zone if you want to be the next big thing in the industry.
But there is one area where you wouldn’t want to mess around with the rules and that is payroll and HR. To avoid any legal and financial litigation you must comply with payroll and HR laws. Some of your actions might drive you out of the business as well. Keeping this in mind we offer Payroll services.

Like other business strategy and planning, payroll services for startups need to be taken seriously and keeping our client in mind the following are the important consideration on the basis of which we provide our services.

1. Convenience

Payroll services for Startups should not be a problem. It should be a cake walk that’s easy to do and one that can be done on any computer or mobile device. To achieve these tasks we make sure that our clients aren’t confined to their office or required to phone in hours manually every time they want to run payroll. Having the ability and the technology to run payroll from anywhere in fraction of minutes is something that we focus on to provide our services to our clients.

stration and will also manage it for you with the shared admin rights so that you can keep a tap on how Gapeseed Consulting is managing the Payroll Services for Startups.

2. Set Up

Gone are the days of paper-based payroll system, move on to a more advanced paperless system it would not require an immense learning from your side or big task, time-consuming training sessions. The transition should be smooth, quick, and easy. The software should be simple, straightforward, and well, user friendly to use.

We will provide you the demonstration and will also manage it for you with the shared admin rights so that you can keep a tap on how Gapeseed Consulting is managing the Payroll Services for Startups.

3. Cost Advantage

For many small business owners, cost cutting is a major thing, the payroll services they choose is often based on one thing – cost. But, when they get their monthly invoice, the amount owed can be significantly more than what they expected to pay. Unfortunately, hidden fees are common in this industry, but luckily not all providers “follow the rules.” A payroll provider’s services and pricing structure should be completely transparent so you know exactly what your invoice is going to be based on how many employees you have and the services you select and we assure you to give a transparent service. As we understand that Payroll Services for Startups are managed as they are having small teams and optimism resources.

4. Service Options

Many a times payroll providers just offer few payroll services, where as we offer a whole host of services designed so as to make your job easier. These services include

  • Payroll Accounting,
  • Attendance Register (Controls),
  • Online employee access to payment records,
  • Direct deposit,
  • Wage garnishments,
  • Easy CTC calculations,
  • Compliances,
  • Manage Employee Information Efficiently,
  • Define the emoluments, deductions, leave etc.,

Other Payroll Services for Startups include, Generate Pay-Slip at the convenience of a click, Generate and Manage the Payroll Processes according to the Salary Structure assigned to the employee, Generate all the Reports related to employee, attendance/leave, payroll etc., Manage your own Security.

5. Partners & Integration

You have to stay away from payroll providers who are not willing to partner and integrate with other HR and accounting systems. When a payroll system is easily matched with other types of accounting services, you own a great flexibility, more control, and better results. Similarly, it is important for us to understand small business needs in order to provide the most complete payroll package possible.

In order to achieve these goals, the government has simplified the business registration process as well as the rules that govern the process. Now, entrepreneurs can start a company in India easily. Even, simple licensing application can be done through self-certification or third part certification system. With the integrated online portal and less paperwork system, entrepreneurs do not have to worry about the administration burden and are able to focus more on running the companies. With initiatives like Make in India, Startups have ocean of opportunity and with such a situation Gapeseed Consulting can be a perfect choice for your business to outsource the payroll services.

To know more about the Payroll Services at Gapeseed Consulting, please connect or write to info@gapeseedconsulting.com

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Outsourced CFO Services for Startups for Winning edge

At Gapeseed Consulting, we love startups. Having been associated with number of startups we understand the unique requirements and hurdles any startup would come across. The series of blog posts is designed to help startups with various set of services that should be inculcated in any business from the beginning.

This is blog 1 of the startup series. The idea is to help you with CFO services, basics of CFO services so that you can either plan or outsource accordingly. We intend to help the startups thereby becoming their Outsourcing and hence functional support partners to allow them to concentrate on their revenues.

The focus of Gapeseed Consulting remains same, we want to ‘multiply possibilities’ for our associates to help them grow their business. Let, us understand the significance of CFO Services for Startups – the edge and benefit of the same.

How Outsourced CFO Services for Startups and Finance Team would help?

    • Outsourcing CFO services for Startups will you give an edge over the others. Strong financial situation of any startup will give an early leg up as compared to the competitions and will also offer a sound standing among the existing players.
    • It will ensure legal & accounting compliances and will also minimize mistakes.
    • The CFO level wisdom will help in identifying the good and bad about valuation increase and will also help succeed in raising capital.
    • An outsourced team is also beneficial as it provides equally competitive results but at lower or variable costs.
    • Outsourced CFO and Finance team will also help you concentrate on business and growth.
    • With Gapeseed Consulting, your CFO team is always scalable and ready to grow with you.
    • You need not plan any sick days or vacation days as outsourced team work on timelines and only they shall not be mismatched.
    • In low budgets, you get better controls and better trained staff. Also they help you with taxes and offer more accurate financial statements.
    • By outsourcing the financial & CFO services to Gapeseed Consulting, you can actually invest your early stage capital & investments in business generating activities and we have the following services to help you understand the cost-benefit of outsourced accounting & financial services. These will also allow you to invest your time and resources wisely.

What CFO & Financial Services do we offer at Gapeseed?

For startups we offer the following services:

Retainer CFO Services

1. We understand that Startups cannot always afford to pay fixed compensations. That is why we have retainer CFO Services. Under this, we help startups in creating contracts, also help them build a financial model and raise equity and/or venture debt.

2. Retainer Services are available for a time duration of 6 months or above.

Project Based Hiring

1. In case you need CFO or Accounting services from an expert on some particular subject or to assess & help you with the in-house accounting services, we can help.This would be a one time exercise with detailed report and follow-up action.

2. This would also be the subscription package for those looking to hire an Interim CFO

Basic Bookkeeping and Accounting Retainer

1. Maintaining your books at each & every stage. We can either use existing systems or provide the one we recommend, we invoice your clients, follow up, collect cash, pay bills and handle everything from bank reconciliation to month-end reporting.

2. You see the report, review, approve or discuss.

Taxes

1. We manage the tax filings – quarterly, annually.

2. We work on reduce your tax liabilities and we ensure that you get the advantages out of best managed taxation services.

Remember, our startup packages start from INR.25,000/- onwards.
Get in touch with us now at info@gapeseedconsulting.com or call up: +91-9599444630/9 to know more.

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