Startup India is a flagship initiative launched by the Government of India on 16th January, 2016 to build a strong eco-system for nurturing innovation and startups in the country which will drive economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower startups to grow through innovation and design.
Are you ready for your Entrepreneur Journey. Have a Business Idea? Launch your Startup with Companies Form and cover your post-incorporation compliances.
The Accounting & Compliance Package is neither standardized nor structure. The package is intended to provide a unique offering to suit each & every specific Business Needs & Objectives. The main intent is to well cover up & comply the Business Houses on all Accounting & Compliance Matters. Our expert team are there to assist & guide you step-by-step in a integrated way to smoother tax compliance transition. The objective of this plan is categorically designed to take care of your business compliance requirements end to end. Do get in touch with our Advisors to know more about.
The Package is designed to meet up all the requirements of Entrepreneurs. This is most Ideal for entrepreneurs looking to:
The Base Idea is to provide all the “Kick Start Services” or “Host” a Startup. The services are designed broadly to integrate the launch very collaboratively & hence the Startup Services under the below spectrum also includes as below :
To avail benefits under the Startup India Action Plan, entities must be recognized by the Department of Industrial Policy and Promotion (“ DIPP”) and meet the requirements as listed in the below mentioned definition. The important point to be noted is that entities should meet the qualifying criteria to fall under the definition of Start-Up under the Action Plan can be entitled to the benefits.
Following are the criteria for consideration as a start-up:
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence. Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 7 years and for biotechnology startups 10 years from the date of incorporation/ registration. Provided further that a Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such purpose.
If you have any more queries please call up our Advisory Team for Startup Legal Benefits & Others.
Angel Investment means investment in equity shares of startup companies by investors. Investors who invest in the equity shares of startup companies are called Angel Investors. Angel investors are essentially the well-heeled Individuals/Firms/Companies who used to form a group of investors for investment in startup companies or small entrepreneurs.
The provision of Angel Investment Tax was introduced by the Finance Ministry in the Union Budget of 2012. Under existing rules, funds raised by an unlisted company through equity issuance are covered under this tax to the extent the amount raised is in excess of the fair market value. Such extra inflow was taxable as "income from other sources" under Section 56(2) of the Income-Tax Act, 1961 (IT Act) and charged the corporate tax rate, resulting in an effective tax of over 30%.
Section 56 of the IT Act, 1961 confers on tax authorities the power to levy excess consideration, more than the fair value, against issue of shares. Section 56 (2) (viib) of the Income Tax Act states:
"Any consideration received by a company (startup) from a resident, against issue of shares, exceeds the fair market value of such shares; such excess consideration is taxable in the hands of the startup, as an income."
Therefore, under Indian tax law, if an Indian company receives share subscription amount from an Indian resident which exceeds the fair value of shares, then the excess amount is taxed as “Income from other sources” under Section 56(2) of the Income-Tax Act and charged the corporate tax rate, resulting in an effective tax of over 30%.
The Central Board of Direct Taxes vide Notification1 dated June 14, 2016 (CBDT Notification) had made the required changes in Section 56(2)(viib) of the Income- Tax Act, 1961 exempting startups raising funds from angel investors.
Thus, in order to get the tax benefit, a startup shall have to obtain a certificate from the Inter-Ministerial board of certification indicating that it is an eligible business. The Government of India had, now as an initiative to promote start ups, scrapped the so-called 'Angel Investment Tax' on investors providing funding to startups.
It may be noted here that for the purpose of this CBDT Notification, "startup" shall mean a company in which the public are not substantially interested and which fulfills the conditions specified in the Notification2 of the Government of India, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion ("DIPP"), number G.S.R. 180(E), dated the 17th February, 2016, published in the Gazette of India, Extraordinary, part II, section 3, sub-section (i), dated the 18th February, 2016.
Talk to our Advisory Team for Startup Legal Benefits, Angel Investment Tax, Legal Agreements & Others Queries.
At this Stage of Business Operation the Integration with Business to People & Capital is be more concentrated & functional. The Organization should technically function to achieve.
The Services coming under this spectrum also include
The Small and Medium Business (SMB’s) enterprise is one of the fastest growing sectors in the country. As a part of our Unique Service Delivery we selectively offer various Financial Products and Services that meet the specific requirements of such enterprises and help them grow.
Finance is the life blood in all the business activities and it is needed to run the business perpetually. Finance acts as a lubricant helping to keep the business running. Whether you have a small, medium or large business, you will always need finance, right from promoting and establishing your product, acquiring assets, employing people, encouraging them to work for the development of your product and creating a brand name. In addition to that, a current business may need finance for expansion or making changes to its products as per the market requirements.