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The growth of 'branding' is huge. This growth, however, has led to a number of companies using some very similar names. This can be a huge c

An Employee Stock Ownership Plan provides tax benefits, improved employee motivation, succession planning and potential for appreciation for

Agreement Vetting is a process of conducting a thorough and critical review of documents to be executed in compliance with the law, here is

#agreement #vetting #trademark registration #taxation #compliance

A personal income tax calculator is a tool used to estimate an individual's income tax liability based on their taxable income, tax slab rat

https://www.bbnc.in/blog/advisory-info/what-is-the-cost-of-trademark-registration/

#compliance #taxation #trademark registration

When you are planning to set up an office in India, there are certain procedures that need to be followed. It can be confusing for business

#foreign subsidiary #taxation #payroll #compliance

For everyone, especially working professionals, tax preparation is crucial. Making a thorough strategy for tax savings in the upcoming year

#itr filing #income tax #payroll #balance sheet

For everyone, especially working professionals, tax preparation is crucial. Making a thorough strategy for tax savings in the upcoming year

#itr filing #income tax #payroll

As more and more foreign companies look to enter the Indian market, the incorporation of a subsidiary company in India is becoming a popular

#foreign subsidiary #taxation #payroll

Simple Tips For Using FOREIGN SUBSIDIARY COMPANY IN INDIA To Get Ahead Your Competition

A company is considered to have a foreign subsidiary company if a foreign company owns more than 50% of its equity shares. The foreign company will be referred to as the subsidiary company's holding company or parent company.

Overview

A foreign corporation will incorporate a subsidiary of foreign company in india of their foreign entity when it wants to expand its activities in other nations. The world's centre for software development is India. Many global corporations have established their Indian subsidiaries.

An organisation must be incorporated in India in order to operate as a foreign subsidiary there. Which nation the parent firm is incorporated in is irrelevant.

The subsidiary must abide by the laws of the nation in which it was formed and conducts business. Thus, if When an international business is incorporated in India, it must abide by Indian law.

A few RBI (Reserve Bank of India) Compliances are required when a foreign subsidiary is incorporated in India because the investment will be considered Foreign Direct Investment (FDI).

In the case of proprietorship firms, partnership firms, and one-person companies, foreign direct investment is not permitted. Limited Liability Partnerships are permitted FDI, but only with RBI preapproval.

Therefore, the optimal entity type for NRIs and foreign nationals to establish a subsidiary company in India is a private limited company. It is the simplest and quickest method for establishing a subsidiary in India.

advantages of foreign subsidiaries

New Market Access

Creating a foreign subsidiary creates a legal entity in that nation. Legal entities are permitted to advertise their goods and services to the community. They have the ability to import and export products and services.

More Economical Manufacturing Options

You may be able to access reduced rates for supplies and labour by establishing a foreign subsidiary in certain markets, such as India. As a result, each product's or service's production cost will be low in comparison to the nation of the parent company.

Availability of Technical Skills

Many foreign nations, particularly those in Asia, offer easy access to cutting-edge technology and novel approaches to technological problems. For instance, India continues to draw people because of its advanced degree of technical understanding.

New Market Access

Creating a foreign subsidiary creates a legal entity in that nation. Legal organisations are able to advertise their goods and services to low-cost international investment.

Utilizing local expertise

A company can create new commercial partnerships with local partners and create joint ventures that benefit from native knowledge by creating a legal organisation in a foreign country.

Co -founder agreement all details and legalities

Overview

A founders' agreement, which lays out the duties and tasks of each of the co-founders, is recommended to set up at the incorporation stage of an enterprise.

Key Terms of the co-founders Agreement

Ownership of equity: The share of equity ownership of each of the company's co-founders is one of the most essential conditions of the Agreement. The stock ownership of the company's co-founders is decided by a few criteria, including monetary investment, expertise, existing intellectual property, know-how, and industry network.

Vesting: One of the most essential things to remember when creating the Agreement is to include a method for dealing with a circumstance in which one of the co-founders leaves or is fired from the firm. A vesting mechanism will be included in the Agreement to specify how the shares will be picked up by the founders.

Roles and responsibilities are defined: Each of the company's co-founders' duties and obligations should be explicitly defined in the agreement.

Restriction on shares transfer: The Agreement may include a lock-in clause that specifies the number of years until the agreement expires during which the co-founders in the company cannot transfer or sell their shares to anyone else.

Intellectual property Protection: The co-founders' intellectual property rights are allocated to the corporation and do not remain the property of the co-founders.

The founders' value additions: The co-founders may provide value to the company by bringing in intellectual property rights, technical know-how, marketing rights, or other similar assets. Co-founders are sometimes given shares in exchange for their contributions to the company's worth. So that there is no uncertainty, the Agreement should clearly state the number of shares to be issued, the percentage shareholding, and the method of valuation of such shares.

Non-compete: It should be agreed in advance that while a founder is a member of the firm, he or she will not engage in activities that are incompatible with the organization's mission.

Confidentiality: A secrecy clause in the co-founders' agreement makes the founders responsible for protecting critical business information.

Time Based Vesting: The shares owned by the founder will be vested in proportion to the time spent by the founder in the firm under time based vesting. If a founder decides to leave the firm before the end of his tenure, the remaining shares of that founder must be returned to the company.

Milestone Vesting: When the company achieves the milestones set forth in the Agreement, the company's shares vest in milestone vesting. If a founder quits the firm before the milestones are met, the shares that were set aside for him do not vest in him.

Benefits

Checklist/Requirements

Key Deliverables

Benefits of Co-founders' Agreement

It aids in the prevention and resolution of disputes arising from disagreements among founders.

It clearly defines the duties and responsibilities of the various founders and develops a solid management and dispute resolution structure.

Minority owners are protected.

It allows the startup's founders to have open and honest discussions about their aims and aspirations, ensuring that there are no conflicts, both professional and personal, as the company expands.

If a founder wants to enter or exit the business, this document clarifies the situation.

ITR filing mandatory when??

The due date of filing personal ITR is July 31, 2022, and maybe you aren’t concerned as you think you’re not eligible to pay tax. Well, if you’re living in this dilemma then read below:

FILING OF INCOME TAX RETURN IS MANDATORY IN THE FOLLOWING CASES:

1) If an individual has assets outside India:

An Individual, being a resident and ordinary resident in India, shall file his return of Income, even if his income does not exceed the maximum exemption limit, if he/she:

Has any asset (including any financial interest in any entity) located outside India.

Has signing authority in any account located outside India.

Is a beneficiary of any asset (including any financial interest in any entity) located outside India.

2) If an individual has deposited more than Rs. 1 crore in a bank account (even if income does not exceed the maximum exemption limit):

If an individual has deposited an amount (or aggregate of amount) exceeding Rs. 1 crore in one or more current accounts maintained in a banking company or a cooperative bank.

3) If foreign travel expense is more than Rs. 2 lakhs (even if income does not exceed the maximum exemption limit):

If an individual has incurred more than Rs. 2 lakhs on travel to a foreign country, either for himself or for any other person.

4) If electricity consumption is more than Rs. 1 lakh (even if income does not exceed the maximum exemption limit):

If an Individual has incurred an expenditure exceeding Rs. 1 lakh on electricity consumption.

5) If total sales, turnover or gross receipt of the business exceeds Rs. 60 lakhs during the previous year:

If during the previous year sales turnover, or gross receipt of the business exceeds Rs 60 lakhs, an individual must file his return.

6) If total gross receipt of profession exceeds Rs. 10 lakhs during the previous year:

If during the previous year if the total gross receipt of the profession exceeds Rs 10 lakh an individual shall file his return.

7) If the total tax deducted and collected from a person during the previous year is Rs. 25,000 or more (Rs. 50,000 in the case of a resident senior citizen):

If during the previous year an individual’s aggregate amount of tax deducted at source (TDS) and tax collected at source (TCS) is Rs 25,000 or more.

This limit shall be considered as Rs. 50,000 in the case of a resident senior citizen, i.e., whose age is 60 years or more at any time during the previous year.

8) If the aggregate deposit in one or more savings bank accounts of the person is Rs. 50 lakhs or more during the previous year:

If during the previous year an individual’s aggregate deposit in one or more savings bank accounts is Rs 50 lakh or more year shall file his return if t.

DOCUMENTS REQUIRED TO BE ATTACHED WITH THE RETURN OF INCOME:

ITR return forms are attachment-less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically).

However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

CONCLUSION:

As per law, anyone below earning of 2.5 lakhs per annum ain’t required to file for ITR but then there are so many other cases where it becomes mandatory to file for the income tax return and I’ve described all those points in brief in my blog When does ITR filing become mandatory?

The filing of return should be done carefully as there are many chances of committing mistakes hence our professional team at BBNC can take of your ITR return, just send us an email at [email protected] and we’ll reply to you in no time.

All important points of Income Tax Slab For FY 2022-2023

INCOME TAX SLAB FOR FY 2022-23

Table of Contents

What is income tax slab?

Income Tax Slab Rates for the FY 2021-22 (AY 2022-23)

Income Tax Slab for FY 2022 – 23 (AY 2023 – 24)

Key differences between the old and new tax regimes

Things you must keep in mind before opting for the new tax slab

WHAT IS INCOME TAX SLAB?

Individual taxpayers will be required to pay income tax according to the applicable slab structure. A person may be assigned to a different tax bracket depending on their income. Consequently, people with greater incomes will be required to pay more tax. The introduction of the slab system aimed to keep the nation's taxation structure equitable. At each budget announcement, the slabs frequently alter.

INCOME TAX SLAB RATES FOR THE FY 2021-22 (AY 2022-23)

Show 102550100 entriesSearch:SL.NOINCOME TAX SLAB AS PER OLD REGIMETAX RATES AS PER OLD REGIMESSL.NOINCOME TAX SLAB AS PER NEW REGIMEINCOME TAX SLAB AS PER NEW REGIME

1Up to Rs 2,50,000NIL1Up to Rs 2,50,000NIL

2Rs 2,50,001 - Rs 5,00,0005%2Rs 2,50,001 -Rs 5,00,0005%

3Rs5,00,001-Rs10,00,000

20%3Rs 5,00,001 -Rs 7,50,00010%

4Above Rs 10,00,00030%4Rs 7,50,001- Rs10,00,00015%

55Rs10,00,001- Rs12,50,00020%

66Rs12,50,001- Rs 15,00,00025%

77Above Rs 15,00,00030%

Showing 1 to 7 of 7 entries

INCOME TAX SLAB FOR FY 2022 - 23 (AY 2023 - 24)

Given below are the various tables for the Revised Income Tax Slabs and rates for the FY 2022-2023 and AY 2023-24:

Show 102550100 entriesSearch:SL.NOINCOME TAX SLAB AS PER OLD REGIMETAX RATES AS PER OLD REGIMESSL.NOINCOME TAX SLAB AS PER NEW REGIMEINCOME TAX SLAB AS PER NEW REGIME

1Up to Rs 2,50,000NIL1Up to Rs 2,50,000NIL

2Rs 2,50,001 - Rs 5,00,0005%2Rs 2,50,001 -Rs 5,00,0005%

3Rs5,00,001-Rs10,00,000

20%3Rs 5,00,001 -Rs 7,50,00010%

4Above Rs 10,00,00030%4Rs 7,50,001- Rs10,00,00015%

55Rs10,00,001- Rs12,50,00020%

66Rs12,50,001- Rs 15,00,00025%

77Above Rs 15,00,00030%

Showing 1 to 7 of 7 entries

KEY DIFFERENCES BETWEEN THE OLD AND NEW TAX REGIMES

There are 2 key differences:

Firstly, the new tax regime includes more tax slabs with lower rates as compared to old tax regime. Hence the income tax slabs for 2022-23 (AY2023-24) are different based on whether you opt for the new or old tax regime.

Secondly, all major deductions and exemptions such as Section80C, Section80D, etc. that are available under the owed if you opt for the new tax regime.

THINGS YOU MUST KEEP IN MIND BEFORE OPTING FOR THE NEW TAX SLAB

There are few things you must keep in mind before opting for the new tax slab:

Consider Tax Saving Deductions and Exemptions

In FY 2022-23, the new tax regime has lower income tax slab rates and more income tax Slab compared to the old regime. But the new tax regime offers very few exemptions and deductions. These include about 70 deductions and exemption like HRA, Section 80C deductions and home loan interest benefit that can be claimed under the old tax regime but cannot be claimed under the new regime.

Lower Tax exemption limit Based on Age

The old tax regime provides higher tax exemption for senior citizens and super senior citizens of Rs. 3 lakh and Rs. 5 lakh respectively as per income tax slab rates in AY 2023-24. This higher limit is not available under the new tax regime, which offer the same Rs. 2.5 lakh exemption limit irrespective of taxpayer's age.

Consider Benefits Beyond Tax Savings

Tax saving investments and expenses like a term life insurance policy, Public Provident Fund, National Pension System provide a dual benefit under the old tax regime. On the one hand, you decrease your tax outgo; on the other hand they also provide benefits like financial security of loved ones or long-term wealth creation. In the case of the new tax regime, you do not receive the tax saving benefit at all

However, tax benefits of these investments are limited up to Rs. 2 lakh in a fiscal after including the Rs 50,000 benefit offered u/s 80 CCD (1B). So, you need to use an income tax calculator to compute your tax outgo under both the new and old regime in order to determine which is suitable for you based on the income tax slab rates for FY 2022-23.

We hope that you enjoyed our article about income tax slab for FY 2022-23. These are the tax slabs for the current financial year of 2022-23. For more details about this please visit [email protected]

#Income Tax #itr

Step-by-Step Guide for Advance Tax Paying

Those with sources of income besides their salaries are obligated to pay advance tax. Advance tax can be paid by those who make money via renting out their property, selling their shares, making fixed deposits, winning the lottery, etc. The "Pay as you Earn" plan, often known as advance tax, can be paid through specific banks or online. If you owe more than Rs 10,000 in taxes in a given fiscal year, you must pay the tax. It is required by law that you pay your taxes in the same year that you get your income.

Table of Contents

Who needs to pay Advance Tax?

How to pay Advance Tax?

Due dates:

Who is liable to pay advance tax?

Consequences of not paying advance tax on time

Things to consider

WHO NEEDS TO PAY ADVANCE TAX?

Every taxpayer, irrespective of whether he/she is salaried, manages a business or is a professional, and whose estimated tax liability in a financial year is Rs 10,000 or more, must pay advance tax.

HOW TO PAY ADVANCE TAX?

The I-T department has designated Challan 280 as the method for paying advance tax. You can pay it online by going to the following address: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and selecting the Challan no./INS 280 tab. Choose "advance tax" next, and then pay with a debit card or net banking. A tax receipt is shown on the screen upon payment. For future reference, download it and carry it with you.

DUE DATES:

15% of the advance tax should be paid on or before 15 June of the financial year.

45% of the advance tax (less tax already paid) should be paid on or before 15 September.

75% of the advance tax (less tax already paid) should be paid on or before 15 December.

100% of the advance tax (less tax already paid) should be paid on or before 15 March.

For taxpayers who have selected the presumptive taxation system, the full amount of advance tax must be paid on or by March 15 of the fiscal year. Advance tax kicks in when a person's tax liability after deducting TDS exceeds Rs 10,000. If advance tax is not paid by the due dates, interest is due on the tax in accordance with the I-T Act's provisions.

WHO IS LIABLE TO PAY ADVANCE TAX?

You must meet the following requirements in order to be eligible to pay advance tax:

Your tax liability must be at least Rs. 10,000.

Income from stock-related capital gains

Profits earned from fixed-deposit investments.

The proceeds that are earned from a lottery.

Rent or income derived from real estate.

CONSEQUENCES OF NOT PAYING ADVANCE TAX ON TIME

Failure to pay advance tax on time results in interest charges being levied under Sections 234B and 234C at 1 per cent simple interest per month or part of a month. Evaluate your advance tax liability and pay it on time, even if you have missed out on paying the first instalment, to avoid further interest liability.

THINGS TO CONSIDER

The advance tax has to be paid on the estimated current income.

The taxpayer is not required to submit any estimate or statement of income to the tax authorities. Tax can be computed on the current income (estimated by the taxpayer) at rates in force during the financial year.

While calculating advance tax, adjustments can be made for any TDS deducted.

The tax liability is also calculated after factoring in deductions available under Sections 80C, 90, 90A, etc.

Tag your income correctly and pay advance tax before the end of the fiscal year. It is better to deal with problems from paying it late than being unable to pay at all. if you need any further help with planning your taxes, you can reach out to [email protected]

Paying Your Advance Tax is now easy : A Step-by-Step Guide

Table of Contents

Who needs to pay Advance Tax?

How to pay Advance Tax?

Due dates:

Who is liable to pay advance tax?

Consequences of not paying advance tax on time

Things to consider

WHO NEEDS TO PAY ADVANCE TAX?

Every taxpayer, irrespective of whether he/she is salaried, manages a business or is a professional, and whose estimated tax liability in a financial year is Rs 10,000 or more, must pay advance tax.

HOW TO PAY ADVANCE TAX?

DUE DATES:

15% of the advance tax should be paid on or before 15 June of the financial year.

45% of the advance tax (less tax already paid) should be paid on or before 15 September.

75% of the advance tax (less tax already paid) should be paid on or before 15 December.

100% of the advance tax (less tax already paid) should be paid on or before 15 March.

WHO IS LIABLE TO PAY ADVANCE TAX?

You must meet the following requirements in order to be eligible to pay advance tax:

Your tax liability must be at least Rs. 10,000.

Income from stock-related capital gains

Profits earned from fixed-deposit investments.

The proceeds that are earned from a lottery.

Rent or income derived from real estate.

CONSEQUENCES OF NOT PAYING ADVANCE TAX ON TIME

THINGS TO CONSIDER

The advance tax has to be paid on the estimated current income.

While calculating advance tax, adjustments can be made for any TDS deducted.

The tax liability is also calculated after factoring in deductions available under Sections 80C, 90, 90A, etc.

Karnataka Govt Launches Global Startup Challenge 2022- Objectives

The Karnataka government unveiled VentuRISE, a programme designed to assist growth-stage entrepreneurs in manufacturing and sustainability-related industries. The Global Investors Meet - Invest Karnataka 2022, which will take place in Bangalore from November 2nd to 4th at the Bangalore Palace, will include VentuRISE as a participant.

Business owners from all over the world will have a platform to showcase their innovative products or ideas and interact with potential investors thanks to the global challenge.

The Global Challenge will provide ambitious entrepreneurs from all around the world with a platform where they can showcase their cutting-edge products or services and establish connections with potential investors.

To ensure the smooth operation of the Startup Challenge, the Department of Industries and Commerce has partnered with TiE, the largest network of entrepreneurs dedicated to helping entrepreneurship, and TiE Bangalore, the regional chapter of TiE Global.

According to a formal release, Amazon is providing funds for the endeavour.

An industry-led screening and selection procedure will focus on entrepreneurs in the manufacturing and sustainability sectors during the next two months. Global business owners will be able to showcase their products or services and build a strong network to support their operations.

A three-round tournament called the Startup Challenge will take place over the course of two months. The application procedure will involve the online submission, online jury pitching, a final presentation at the Global Investors Meet, as well as platform-specific media exposure.

A monetary award of $1,000,000 will be given to the winners. The winners will get access to customers, special pitching opportunities at Invest Karnataka, curated investor meetings, and mentoring sessions. Famous investors in venture capital, private equity, and angel investing are anticipated.

The objective is to market Karnataka as a top location for businesses in the manufacturing and sustainability industries, as well as to draw investors and business partners to aid in their expansion.

If you wish to apply for the same, here is the link to submit your startup with VentuRISE:

Follow BBNC for more such updates.

#nvestors in venture capital #private equity #and angel investing are anticipated.#Global Investors Meet #entrepreneurs in manufacturing and sustainability-related industries

Maneuvering Through Legal Structures In India For setting up a Business

NAVIGATING THROUGH LEGAL STRUCTURES IN INDIA

In order for some start-ups to succeed, it must be driven by passionate entrepreneurs. Similarly, when we talk about start-ups, we must focus on what is the actual factor that leads to a proper structuring of a company when particularly set up in India. A successful start-up is the one who are focused on building exceptional solutions that provides customer delight as well as internal laws, rules and regulations that will in turn help in the smooth running of a business.

In a business it is critical to understand about the basic laws and legislation that will help an organization to move forward without any discrepancy. Entrepreneurs must be aware of and up to date on all the laws governing their businesses and markets, from formalizing a founder's agreement to safeguarding intellectual property.

Here are a couple of important legal basics that start-ups need to be aware of before beginning a business:

1. First and foremost, finalizing the business structure and ownership agreement:

- Before starting up any business the most important thing to do is to explicitly understand the business structure and work on the nature of the business and its type. There are several types of businesses which a founder needs to incorporate before starting a business, such as partnership, private limited, one-person company, small company, associate company, Proprietorship, limited liability partnership and so on. A clear vision at the beginning is crucial to the business's short- and long-term success and success.

Each business type comes with its own set of legal requirements and regulations and businesses should pay special attention to them before incorporating the business.

That’s why it is always recommended to consult a “Consultancy and Advisory solution” such as BBNCwho will help in the proper process of business setup starting from co-founder agreement, legal support agreement and so on.

A private limited company is the best option for start-ups who are looking to raise funds as it provides the flexibility to accomplish external investments and company stock. It is now advisable to draft a Founders agreement or Co-founder agreement to be able to cop up with the current ecosystem of start-ups in India.

A Founder’s Agreement is essentially a document that specifies important details about the founding team and the business, such as, roles, responsibilities, executive compensation, operational details and exit clauses among others.

The entire purpose of all such agreement is to reduce the possibility of surprised fraudulent and discrepancy in a full functional company. Especially when a company is growing and is at its peak performance and starting to make a name in the market. It is a basic pillar

foundation to start and scale up a business of your dream. It may also act as a go to guide when any sort of disagreement rises. 2. Should apply for Business licenses : - A business license is an integral part of any business irrespective of its types. There are different types of licenses available depending on the nature and size of any business. It will be a best beginning for any start-ups after knowing the type of license required for your business and then obtaining them. The lack of relevant licenses may lead to costly lawsuits and unwanted legal battles. Business licenses are sort of legal documents that will allow a business to operate while business registration is the official process of listing a business (along with relevant information) with the official registrar. Shop and Establishment Act is the common license that all businesses must obtain in order to operate their businesses, trades or professions. Depending on the industry, there may be other business licenses required. For instance, a company operating online, may need additional licenses, such as GST registration, and professional tax registration. In addition to the licenses listed above, a restaurant may need a Food Safety License, Certificate of Environmental Clearance, and Prevention of Food Adulteration Act, as well as a Health Trade License.

So it is always suggested to consult someone or any professional to get your business a proper business license and to avoid all such unwanted fraudulent.

3. Accounting laws and Taxation:- Business Accounting is the most crucial part of any business entity. Maintaining accounts and auditing it time to time is to be ensured that relevant accounting and taxation rules are obeyed. It is found that many start-ups in India don’t pay a close attention to accounting and taxation as required time to time. However, this cannot be ignored for a long time as this may lead to some serious issues and discrepancies. It is always suggested to have a proper and reliable payment and invoicing system for clear accountancy.

Taxes are an intrinsic part of any business we talk about. In India there are variety of taxes depending on business types and strength. There are state taxes, central government taxes, Custom taxes when your company works on the module of import and export, and so on. Different sectors have different kinds of taxes. Knowing this before starting a company will be useful.

Just few years back, the Government of India launched the “Start-up India” program. This was an initiative to promote startups, and to give exemptions and tax relaxations for startups and newly founded businesses. According to this initiative, a startup can avail income tax exemption for a period of 3 years as well as tax exemptions from capital gains and investments above Fair Market Value.

Startup Recognition:

Under the Startup India Action Plan, startups that meet the definition as prescribed under G.S.R. notification 127 (E) are eligible to apply for recognition under the program. Eligibility Criteria for Startup Recognition:

a) Turnover should be less than INR 100 Crores in any of the previous financial years.

b) The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth.

c) An entity formed by splitting up or reconsutrctuon of an existing business shall not be considered a "Startup"

d) An entity shall be considered as a startup up to 10 years from the date of its incorporation.

e) The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership.

We always suggest to have an accounting and Taxation solution in which way you wouldn’t have to worry about it and carrying on your dream business and goals and be worry-free. We at BBNC have professionals such as Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Labour Law Experts, and HR compliance experts. We provide all of the services required for a start-ups under one roof so that they don’t have to worry about compliances.

4. Following labour laws: -

Labour laws are a bit tricky part in any organisation be it small or big in size. It is obvious that when you are setting up a company you should be subjected to labour laws regardless of the size of the company, you will have to hire people to work within your company and so this is another most crucial part. Laws with regards to minimum wages, gratuity, PF payment, weekly holidays, maternity benefits, sexual harassment, payment of bonus among others will need to be complied with. It is best to consult a legal counsel to assess the laws applicable to your startup and ensure that your startup is compliant to the required labour laws.

With regards to labour laws, startups registered under the Startup India initiative can complete a self-declaration (for nine labour laws) within one year from the date of incorporation in order and get an exemption from labour inspection. The nine labour laws applicable under this scheme are:

a) The Industrial Disputes Act, 1947

b) The Trade Unit Act, 1926

c) Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996

d) The Industrial Employment (Standing Orders) Act, 1946

e) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

f) The Payment of Gratuity Act, 1972

g) The Contract Labour (Regulation and Abolition) Act, 1970

h) The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

i) The Employees’ State Insurance Act, 1948.

Startups under this scheme will have to file self-certified return for the second and third year in order to continue with the exemption.

It is suggested to hire a professional consultant especially for start-ups who would be able to cover all such employment policies and details on behalf of your company.

If you need any help with legally setting up your company or taking care of your day to day compliance needs reach out to us at [email protected], we will be happy to help. We have specialized professionals under one roof helping you take care of each and every compliance so that you focus on your business activities without the compliance worry.

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