Legal, Resources, Startups

Change in Classification Criteria of MSMEs

Finance, Legal

Zero fee for incorporation of all companies with authorized capital upto Rs.10 lakh

Zero fee for incorporation of all companies with authorized capital upto Rs.10 lakh

The Finance Ministry has notified the Companies (Registration offices and Fees) Amendment Rules, 2018 inter alia providing for zero fee for incorporation of all companies with authorized capital upto Rs.10 lakh.

The Notifications is the outcome of Government Process Re-engineering (GPR) initiatives for making the Incorporation Process Speedy, Smooth, Simple and reducing the number of procedures involved for starting a Business.

The amended rules shall come into effect from 26th January, 2018

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Licenses for Small Indian Businesses


The Indian governments, both state and central, have never been particularly good at informing new entrepreneurs of the licenses they would need while starting up. As a result, many operate in an unorganised manner (that is, without many of the licenses). But most businesses do want to comply with the law. So here’s a list of licenses a small business (whether service or manufacturing) needs to comply with the law:

  1. PAN Card:
    All businesses, whether in the name of a proprietor or entity, need to have a PAN card or Permanent Account Number card. This number is to be quoted for all payments. Therefore, it is to be quoted while opening a bank account, payment of service tax and just about anything else related to business.
    Required by: All businesses
  1. TAN:
    All legal bodies that will be paying salaries, commissions, interest or dividend need a TAN, as it is to be quoted on deducted tax at source. Therefore, any company, proprietor, government body, would need a TAN. The Tax Deduction and Collection Account Number is a 10-digit alphanumeric code can only be approved when the business has a PAN in its name.
    Required by: All businesses paying salaries, commissions, etc.
  1. Service Tax:
    Service tax is an indirect tax imposed by government on services; it came into existence under the Finance Act, 1994. It is required by any organisation providing taxable services over Rs. 9 lakh, but service tax need only be collected from customers once revenues hit Rs. 10 lakh per annum for the first time. The service provider pays the tax to government after collecting it from consumers at the current rate of 14.5 per cent. Once payment is collected, it needs to be deposited every month to government, which also requires all such businesses to file returns twice a year, in April and October.
    Required by: All service providers
  1. VAT & CST:
    a) VAT Frequently referred to as sales tax, VAT or Value Added Tax is a form of indirect tax levied at various stages of production of services and goods. It is also imposed on imported goods as well but the same rate as that of local product is maintained. VAT is imposed on value addition at every phase of production. The final consumers will be the ultimate bearers of this tax. This is an indirect but coherent form of taxation and involves transparency so that it is easily understandable. Registration is required once revenues of the business cross Rs. 5 lakh per annum
    b) CST Or Central Sales Tax:
    Central Sales Tax is another form of sales tax in India, levied when goods travel inter-state. In fact, it is quite similar to the typical sales tax imposed by governments around the world on the sale of produced goods as a way of generating considerable revenue to the government. This tax is applicable to both imported goods and goods sold within the country. Applications for VAT and CST can be completed simultaneously.

Payment must be made to government on the VAT/CST collected every month; returns must also be filed monthly. To get this registration, you would, however, need a commercial establishment.

Source: Tech Story

Business Plans, Education, Legal, Mentoring, Social Entrepreneurship

FAQ on Trusts Act Income Tax and FCRA

FAQ on Trusts Act, Income Tax and FCRA

Are you planning to start a new NGO and wondering what would be a good choice of registration – Trust, Society or Company and also wondering what should be the minimum and maximum number of trustees you should have on your Board?


Are you already registered but wondering how unspent income of your organization can be carried forward to the next year or accumulated for up to 5 years?


Are you planning to receive funds from a foreign source but confused if funds received from an NRI would be allowed even without FCRA registration?


If these and a myriad other questions keep cropping up in your mind in the course of running your NGO and if you ever wondered or prayed if there would be a handy reference book to refer to at such times or just simply to brush up your working knowledge of the Trusts Act, Income Tax (exemptions and deductions) and of course the FCRA, … the answers are all there in Centre for Advancement of Philanthropy’s latest book “Frequently Asked Questions” (FAQ) – the all new and revised 2014 Edition.


Written by Centre for Advancement of Philanthropy’s CEO, Mr. Noshir H. Dadrawala and a foreword by Bahram N. Vakil (Founding Partner, AZB & Partners) this book has been written keeping the layperson in mind. However, professionals would also find it to be of value. Devoid of legal jargon and written with clarity and depth, this book should be on the bookshelf of every NGO/NPO seeking ready answers to common questions pertaining to the Bombay Public Trusts Act, Income Tax Act and Foreign Contribution (Regulation) Act.


Price: Rs. 300/- (Postage Rs. 50/- extra)

Mode of Payment:

1) Demand Draft or Cheque payable at par for Rs. 350/- drawn in favour of “Centre for Advancement of Philanthropy”

2) Bank transfer (NEFT):

Name of the bank: Central Bank of India

Bank Address: Central bank of India, Mumbai Main Office Branch, Mumbai 400 023.

Name of Account Holder: Centre for Advancement of Philanthropy

Account No.: 1721311396

IFSC: CBIN0280621

(Please let us know as soon as the payment is made via NEFT)

We will send you the book and receipt for the payment via speed post/ Courier immediately on receipt of your payment.

We would also offer 20% discount on bulk purchase of 20 or more books.


Our contact details:

Centre for Advancement of Philanthropy

Mulla House, 4th floor,

51, M G Road

Flora Fountain

Mumbai 400 001

Tel: 022 22846534 / 22029945


Legal, News, Resources

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