To Promote Social Investment in the state of Rajasthan Rajasthan Government on 19th July 2021 issued notification regarding exemption from Stamp Duty and Registration fee chargeable on the instrument of sale, lease or gift of immovable property executed in favour of a Non-Profit Institution. There are two separate Notifications for Stamp Duty and Registration Fee exemption to NGO, Only those institutions which Obtain Entitlement Certificate from Government will be exempted under this notification.
Link of Notification for Exemption in the Registration fee – Download
Link of Notification for exemption in the Stamp Duty – Download
Procedure to get Stamp Duty and Registration fee Exemption
Non Profit Institutions wants to get exemption from the above notification are required to obtain Entitlement Certificate online from Rajasthan Government, to get approval non-profit institution must already be registered as Trust, Society or Section 8 Company (NGO)
Documents required to apply for Entitlement certificate for Exemption
Institution Reg. & Latest Renewal Certificate/ संस्था के पंजीकरण & अंतिम नवीकरण प्रमाणपत्र
Audited certificate of the CA of the a/cs of the institution for last three FY/ पिछले तीन वित्त वर्ष के लिए संस्था के खातों के सीए का ऑडिटेड प्रमाण पत्र
Details of current Executive/ Governing body of the Institution and Bye-laws/ संस्थान और उप-कानूनों की वर्तमान कार्यकारी / शासी निकाय का विवरण
Annual Report of last three FY/ पिछले तीन वित्तीय वर्ष की वार्षिक रिपोर्ट
Buyer-Seller Agreement
Documents relating to immovable property in the name of the institution (only for Exemption under S.No. 1 to 6)/ संस्था के नाम पर अचल संपत्ति से संबंधित दस्तावेज (केवल क्र.स. 1 से 6 के तहत छूट के लिए)
Copy of documents of land (only for Exemption S.No. 1-6)/ भूमि के दस्तावेजों की प्रतिलिपि (केवल क्र.स. 1-6 के तहत छूट के लिए)
Bank Account Details
Details of the Work being done for the Disadvantaged Class/ Section/ वंचित वर्ग/ तबका के लिये किये जा रहे कार्यो का ब्यौरा
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. In this tutorial, we’ll explore how to calculate depreciation under the Companies Act and the Income Tax Act. We’ll also discuss the procedure for calculating deferred tax related to fixed assets.
Depreciation Under Companies Act
The depreciation under the Companies Act is calculated based on the useful life of the assets, as stated in Schedule II of the Companies Act, 2013.
Here’s a simplified step-by-step process:
Identify the Asset: Determine the fixed asset that you will depreciate.
Determine the Cost: Ascertain the historical cost of the asset, including purchase price, import duties, transportation, and installation.
Assess the Useful Life: Refer to Schedule II for the prescribed useful life of the asset class.
Select the Method: Choose a depreciation method (Straight line method or Written down value method) as per your company policy.
Calculate Depreciation: Apply the method to the cost of the asset over its useful life.
Example Table of Rates and Useful Life as per Companies Act:
Asset Type
Useful Life (Years)
Depreciation Rate (SLM)
Depreciation Rate (WDV)
Buildings
30
3.34%
5.28%
Furniture
10
9.50%
18.10%
Machinery
15
6.33%
13.91%
Computers
3
31.67%
63.16%
Note: SLM stands for Straight Line Method, and WDV stands for Written Down Value Method.
Depreciation Under Income Tax Act
The Income Tax Act allows businesses to claim depreciation on their assets to reduce their taxable income using the Written Down Value (WDV) method.
Steps for calculation under Income Tax Act:
Categorize the Asset: Identify the block of asset as per Income Tax rules.
Determine the WDV: Find out the Written Down Value at the beginning of the year.
Apply the Rates: Use the rates provided by the Income Tax Act for different asset types.
Compute Depreciation: Calculate the depreciation for the year based on the applicable rate.
Example Table of Rates as per Income Tax Act:
Asset Block
Depreciation Rate
Building
10%
Furniture and Fittings
10%
Machinery and Plant (General)
15%
Computers and Software
40%
Calculating Deferred Tax
Deferred tax is calculated on temporary differences between the book value of assets as per accounting records and their value for tax purposes.
Here’s how to calculate deferred tax:
Identify Temporary Differences: Determine the temporary differences that arise due to differences in depreciation methods or rates as per accounting standards and tax laws.
Calculate Timing Differences: Assess the timing difference for the period by subtracting the tax base of the asset from its carrying amount.
Apply the Tax Rate: Apply the current tax rate to the timing difference to find the deferred tax.
Deferred Tax Asset or Liability: If the carrying amount is greater than the tax base, it results in a deferred tax asset. Conversely, if the tax base is greater, it leads to a deferred tax liability.
Example Calculation:
Particulars
Carrying Amount
Tax Base
Temporary Difference
Tax Rate
Deferred Tax
Machinery (as per books)
100,000
80,000
20,000
30%
6,000
In this example, a deferred tax liability of Rs. 6,000 will be recognized on the balance sheet because the carrying amount is more than the tax base.
Remember that rules and rates are subject to change, and different types of assets may have specific requirements. It’s important to refer to the latest schedules and rates provided under the Companies Act and Income Tax Act respectively, and to consult with a tax professional for accurate depreciation and deferred tax calculations.
Starting a new business needs some decision making at a very initial stage. But they have bearing on the overall success of the business. The first question we need to answer is to choose the Business setup. There are various options. Indian law provides many options for a business set up. It contains a small business entity like a proprietor and can go to a complex one like a public limited company or further a listed company.
In this article you will understand all these setups.
Different Types of Business Setup to Choose
1. Proprietorship
a). How to set up a proprietorship?
It is the simplest form of business setup. There is no need to apply for a separate PAN for starting a business as an individual. You can have different names for the business. No extra compliances are required.
b). How the income of a proprietor will be taxed in income tax?
The income of a proprietor is taxed on the normal tax rates of an individual. The income is shown in the income tax return of the proprietor as an income from business or profession. The tax rates of individuals are applicable on a proprietorship business.
2. HUF
a). How to set up an HUF?
A HUF is automatically formed at the time of marriage & includes women such as wives & unmarried persons/daughters. There must be one common ancestor to continue the lineage/descendants. Gifts, wills, property sale or inheritance are all collectively shared as assets & so not repeatedly subject to tax.
Upon being established, a HUF needs to be officially registered in its name. It should have a legal deed, containing details of members and the business nature of the HUF. A PAN number and bank account should be opened in the name of the HUF.
b). How to tax income of an HUF?
A Hindu Undivided family unit can save taxes by creating & pooling in assets to form an overall entity. This is taxed separately from its individual members.Hindus, Buddhists, Jains, and Sikhs can also form a HUF. This unit has its own PAN and files tax returns independently of its members.
The main advantage of this is that each family member can claim their own respective exemption as a deduction or tax rebate. Additionally, insurance can be undertaken for the entire family unit, whilst internal functional member salaries can be disbursed & later deducted from the total income (treated as an expense). Investment returns are again taxable overall, however HUF tax rates are the same as for individuals. This saves money for the family.
3. Partnership firm
a). How to set up a partnership firm?
A formal partnership deed on a stamp paper is required. The names of all partners and their details should be there in the deed. The object clause is required in partnership deed. The manner of sharing the profits , salary of partners and capital contribution is also covered in partnership deeds.
b). How to tax income of a partnership firm?
There is a separate tax rate to tax the income of a partnership. Their tax incidence is highest in comparison to all other forms of business. They don’t get any minimum exemption like the individual and huf.
An LLP can be set up fairly easily. All that’s required is a minimum of 2 or more assigned partners, their respective documents, including PAN & address proof, such as Aadhar, Driving license, etc. Furthermore, a photo of each participant & credentials pertaining to the property where the business will be based or conducted. These could be a rent agreement, tax receipt/ownership deed or latest utility bill. The same also applies in the case of partnerships with foreign nationals (using their documents from abroad).
b). How to tax income of an LLP?
This is simple & tax is levied at a flat rate of 30% on all income under Rs. 1 Cr, beyond which an additional 10% surcharge is applied over the total amount. Method of payment include downloading & filling a physical challan document (ITNS 280), subsequently making the payment at a designated bank branch. Alternatively, one can pay online via the e-pay portal.
5. OPC
a). How to set up an OPC?
A One Person Company (OPC) can be established with just 1 director & member (totalling a minimum of 2 people overall). This is as per Section 2(62) of the Company’s Act 2013. Firstly, one needs to apply for a Digital Signature Certificate (DSC) of the intended director. This requires an Aadhar & PAN card (both for ID, address proof & tax purposes), photo, email address & phone number.
Upon receiving the DSC, one needs to apply for the Director Identification Number (DIN) for the proposed Director using the SPICe form. This should be accompanied by the name and the address proof of the director. For existing companies, form DIR-3 is required. Since January 2018, the applicant doesn’t need to file this separately. The DIN can now be applied within the SPICe form for up to three directors.
Now the name of the company needs submitting & approval. This needs to be in the form of “ABC (OPC) Private Limited”. There are 2 avenues in applying for this: either using form SPICe 32 or the RUN web service by MCA (by submitting 1 name & the justification of this). Since 23/3/2018 though, the Ministry of Finance has permitted 2 proposed names & 1 resubmission (RSUB), whilst reserving unique names for unique names (RUN service) for companies.
Upon approval by the MCA, one can progress further.
The following documents need preparing to be submitted to the ROC (Registrar of Companies):
The Memorandum of Association (MoA) which are the objects to be followed by the Company or state the business purpose for which the company will be incorporated
The Articles of the Association (AoA) which stipulates the operating company by-laws
As there’s only 1 Director and a member, a representative nominee needs to be appointed. In the event that they become incapacitated or dies & is unable to perform their duties, the nominee will act on the director’s behalf. Consent will be acquired in Form INC – 3, along with their PAN & Aadhar Card
Proof of the proposed company’s registered office, plus ownership and a NOC from the owner is also required. Furthermore, affidavit & consent from the proposed director on form INC -9 & DIR–2, respectively. Finally, a declaration by the professional which certifies that all regulations are fulfilled.
No coming onto the filing of forms with the MCA. All documents will be attached to the SPICe form series along with the DSC of the director & member. These will then be uploaded to their site for approval. Upon uploading, forms 49A & B will be generated for the PAN & TAN of the company. These need to be sent to the MCA as well.
Lastly, upon verification, the ROC will issue a certificate of incorporation, ready for initiating business operations.
b). How to tax income of an OPC?
This is simple: it’s merely applied at a flat rate of 30%.
6. Private company
a). How to set up a private company?
Upon finalising & deciding a name for the company:
#1: Apply for DSC (Digital Signature Certificate)
#2: Apply for the DIN (Director Identification Number)
#3: Check for the proposed name availability & secure it
#4: File the EMoa and EAOA to register the private limited company name
#5: Apply for both the PAN and TAN of the company
#6: Certificate of incorporation will be issued by RoC, along with PAN & TAN
#7: Open a current bank account using the company name
b). How to tax income of a private company?
This is levied at a rate of 25% plus surcharge of 7% if the total income exceeds Rs. 1 Cr but less than 10 Cr. Above 10Cr, the surcharge increases to 12%. The overall rate increases to 30% if the annual turnover exceeds 250 Cr.
7. Public company
a). How to set up a public company?
The requirements for registration of Public Limited Companies (PLC) are similar to those of establishing an OPC, with a few differences – yet it remains simple. There are a multitude of rules and regulations set under the Companies Act, 2013 for this. Aspects to consider during this process include:
A minimum of 7 shareholders & 3 directors are needed to form a PLC
A share capital of at least Rs. 5 lakhs is required
A Digital Signature Certificate (DSC) of one of the directors is needed for submission
Self-attested copies of identity and address proof
The intended directors of the company will need a DIN
An application is warranted for selecting the company name
The main object clause of the company must be mentioned, stating what a company will do after its incorporation. The application needs to be submitted to the ROC along with the required documents like MOA, AOA, filled forms DIR – 12, INC – 7 & 22. These need to be accompanied by the applicable registration fees. Upon obtaining an approval from the ROC, the company can apply for the ‘certificate of business commencement.’
Documents required for incorporating a PLC:
Proof of identity & address plus PAN number of all the shareholders and directors
Utility Bill of the proposed registered company office location
NOC from the landlord/leaseholder where the company office intends to be situated
DIN & DSC of all the directors
Memorandum & Articles of Association (MOA) & (AOA)
b). How to tax income of a public company?
This is levied at a rate of 30% plus surcharge of 5% if the total income exceeds Rs. 1 Cr. Additionally, 3% Education cess & Secondary and Higher Education cess on the total of the income tax & surcharge.
8. Listed company
a). How to get a company listed?
Firstly, the issuer should be a company incorporated under the Companies Act 1956 / 2013 in India. Secondly, the post issue paid up capital of the company (face value) shouldn’t exceed Rs. 25 crore. A track record of at least three years of either:
i. the applicant seeking listing; or
ii. the promoters (holding a minimum of 3 years of relevant experience & holding at least 20% share of post issue equity capital share, collectively or individually) or a promoting company, established in or outside India or
iii.Proprietor/Partnership firm which subsequently converted into a company (however not in established as such for three years), then approaches the exchange for listing
The company/entity should have an operating profit (earnings excluding interest, depreciation and tax) from operations for a minimum of any 2 out of 3 financial years preceding the application and its net worth should be in the positive balance.
It’s also imperative that the applicant company has not been referred to a former board for Industrial and Financial Reconstruction (BIFR). Furthermore, no action should have been taken under the Insolvency and Bankruptcy Code against the issuer and promoting companies.
Lastly, the company shouldn’t have received any winding up petition admitted by a NCLT or court. No material regulatory/disciplinary action by a stock exchange or regulatory body should be recorded in the previous three years against the applicant company.
b). How to tax income of a listed company?
This is also referred to as corporation tax. It is set at 25% for annual turnovers of less than (& including Rs. 250 Cr) & 30% above this. A 5% surcharge is levied on any amount exceeding 1 Cr, irrespective of the total amount.
About Author
CA Shaifaly Girdharwal
CA Shaifaly Girdharwal is a qualified chartered accountant practicing in GST. She is the co-founder of www.consultease.com and a famous YouTuber with more than 2,40,000 subscribers for her channel dedicated to the GST videos. She is also a trainer and author. She is a trainer at https://www.consultease.com/courses/.
Loan Agreement is an instrument and Stamp duty is required to be paid while executing the loan agreement as per rates prescribed by the State of Rajasthan in Rajasthan ( Stamp duty on Loan Agreement in Rajasthan) . Loan Agreement is a very important document that confers rights and obligations on lender and borrower (parties to Agreement )
Stamp duty Payable on Loan Agreement in Rajasthan
Particulars
Amount of stamp duty Payable
Loan Agreement
0.25% of Loan amount max. Rs. 25 lacs
Loan Agreement to Start-Up, up to rupees ten lakh
Rs.0 after rebate
Loan Agreement to Start-Up exceeds rupees ten lakh
0.25% of Loan amount
Agreement Relating to Deposit of Title Deed/ Equitable Mortgage Deed when Loan repayable in more than 3 months
0.25% of Loan Amount Max 25 lakh
Agreement Relating to Deposit of Title Deed/ Equitable Mortgage Deed when Loan not more than 3 months
0.075% of Loan Amount Max 5 lakh
Loan to set up a Micro, Small or Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, or enhancing credit facility or transfer of loan account from one bank to another by Micro, Small or Medium Enterprises, in the State – Per document in case of loan agreement and deposit of title deed and lease contract Rs. 100/
Rs. 100
Loan to set up a Micro, Small or Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, or enhancing credit facility or transfer of loan account from one bank to another by Micro, Small or Medium Enterprises, in the State – Per document in case of simple mortgage with or without transfer of possession of property Rs. 500/-
Section 149 (3) of the Companies Act, 2013 has provided for the residence of a director in India (Resident Director in India) as a compulsory i.e. every company shall have at least one director who has stayed in India for a total period of not less than 182 days in the previous calendar year.
So if you are Incorporating a new company that has all the Directors who is not Indian Residents, you need to hire one Indian Resident Director.
Duties and Responsibilities of Resident Director in India
Resident Director will be fully responsible as Normal Director of the Company,
Resident Director will not be involved in operational control of the company.
Resident Director will be appointment to fulfill the statutory requirements.
Directorship will be covered under the officers and liability insurance.
Resident Director will participate in Board Meetings of the Company, wherever required
How much stamp duty is required to be paid on Acknowledgement
Rs. 10 value of stamp duty is required to be paid on acknowledgement in Rajasthan
Acknowledgment Registration fee
The document registration of acknowledgement is optional at the option of parties. Rs. 300 registration fee is applicable if parties wants to register acknowledgement.
Real Estate is “Real Property” such as Land and things attached to the land, it is said that value of land never decreases and significant returns can be generated in the long terms and treated as one of the safest investment to do. Real Estate also includes things attached to the land such as trees, water, mineral, bridges, homes. Real Estate also gives real sense and satisfaction to owner of property as we see real value.
In this article we will discuss about the real estate company registration where you can buy, hold and sale properties as stock in trade as such or by making any upgrades likes construction of residential and commercial real estate projects, If we consider and see the Indian Market there is still major population in India lives in villages and there is less job opportunities as compared to major cities, access to greater facilities and so many other benefits , people tend to shift to cities where these facilities are available.
The Major revenue source for real estate company is income from sale of stock of real estate property or rental income from real estate property.
How to Start Real Estate Business in India
To Starting out real estate business you will need to choose the business stracture in India under which you want to do business , following business stracutres under which business of real estate can be carried out :
As you can do business in any of the above business structures , Private Limited Company is the Most popular business entity in India as most of real estate businesses are registered as private limited company , registration as private limited gives benefit of limited liability to owners and sense of confidence to customers as it is highly regulated under the provisions of Companies act and Details relating of Directors and shareholders are easily available on MCA21 website by payment Rs100 fee , with this information customer’s can exercise some due diligence as well.
Below we will discuss about the real estate business registration as private limited company, what are the main requirements for registration, documents required for registration, Capital requirements and RERA
Real Estate business registration as Private Limited Company in India
Minimum requirements for real estate company registration :
Minimum 2 Directors are required
Minimum 2 Shareholders are required , both Director and shareholders can also be same persons
No Minimum Capital requirement for registration of Company
Name of Company should be unique, there should not be any Company, LLP or Trademark in class of real estate should be registered in the name of proposed company
Ownership of Company will be based on No of Shares held
Company should have Registered office address in India
Documents required for Real Estate Company Registration:
PAN of Directors and Shareholders
Aadhar of Directors and Shareholders
Bank Statement or utility bill in the name of Applicant ( not older than 2 months )
Email id
Mobile Number
Video for Digital Signature verification
Get Ebook on Construction Company
Legal Guide
Business Entity Selection
Procedure for registration of a construction company in India
How to enrol with Limited companies for construction company in India
Preparation of company profile of Construction Company in India
Search for the project manager of company and book appointment
Object clause of Memorandum of Association of Real Estate Company registration
To purchase any land, plot(s) of land or immovable property or any right or interest therein either singly or jointly or in Partnership with any person(s) or Body corporate or partnership Firm and to develop and construct thereon residential, commercial complex or complex(es) either singly or jointly or in partnership as aforesaid, comprising offices for sale or self use or for earning rental income thereon by letting out individual units comprised in such building(s).
To purchase any movable or immovable property including industrial,commercial, residential, or farm lands, plots, buildings, houses, apartments, flats or areas within or outside the limits of Municipal Corporation or other local bodies, anywhere within the Domain of India, to divide the same into suitable plots, and to rent or sell the plots for building/constructing residential houses,bungalows, business premises, and colonies and rent or sell the same and realize cost in lumpsum or easy installments or by hire purchase system and otherwise.
To purchase, sell and otherwise to carry on the business such as builders, contractors, architects, engineers, Estate agents, decorators and surveyors.
To purchase for resale and to trade in land and house and other immoveable property of any tenure and any interest therein, and to create, sell and deal in freehold and leasehold ground rents, and to deal in trade by way of sale, or otherwise with land and house property and any other immovable property whether real or personal.
To construct, execute, carryout, equip, support maintain, operate, improve, work,develop, administer, manage, control and superintend within or outside the country any where in the world all kinds of works, public or otherwise, buildings, houses and other constructions or conveniences of all kinds, which expression in this memorandum includes roads, railways, and tramways, docks, harbours, Piers, wharves, canals, serial runways and hangers, airports, reservoirs, embankments, irritations, reclamation, improvements, sewage, sanitary, water, gas, electronic light, power supply works, and hotels, cold storages, warehouses, cinema houses, markets, public and other buildings and all other works and conveniences of public or private utility, to apply for purchase or otherwise acquire any contracts,decrease, concessions, for or in relation to the construction, execution, carrying out equipment, improvement, administration, or control of all such works and conveniences as aforesaid and to undertake, execute, carry out, dispose of or otherwise turn to account the same.
Capital Requirement for Real Estate Company registration
As per the Provisions of Companies Act, there is no minimum Capital requirement to carry on business, but as you see real estate business is capital incentive based business and you need high amount of capital as per your requirement, but initially you can start company with less amount and in future as per the requirements of business you can infuse capital in the company, It is important to note that you can either fund capital in your business in the form of equity , preference capital or in the form Debt capital or combinations of these.
RERA Registration for Real Estate Company
There are mainly two types of Registration that Real Estate Company will require under the provisions of RERA
Real Estate Project Registration
Agent Registration
Project Registration
In RERA Project Registration , every Real Estate project developed or to be developed by Real Estate Company will require registration under the provisions of RERA Act, RERA registration will be as per the laws of different states on Real Estate Projects
Agent Registration
Agents acting as Brokers or property dealers require registration under the provisions of different state laws of RERA , if the Real Estate Company is dealing in such activates, then company must obtain such registration with respective authority .
Fastlegal provides Company Registration Services all over India , if you need any help , Please submit your request below
Starting an online course is one of the most popular thing that people are doing on internet these days.
Under the online course you provide video course on some of the important topics like digital marketing, Facebook ads Android app development web development affiliate marketing legal courses and many other topics.
Starting your own online course needs some efforts for development of website, marketing campaigns, payment gateways and a business that provides a bank account in the name of your company and your video courses.
Step by step procedure for development of online course
Getting getting full knowledge of the topic for which you want to make an video course
Making making making videos for every topic that you want to cover in the online course
Video editing
Buying a domain name that suits your course
Buying an hosting for hosting your website
Development development of website with WordPress.org
Getting getting the perfect theme for your online course under WordPress
Installing plugin for online course on WordPress
Uploading the course contents
Uploading the video course according to contents
Setting up payment gateway
Legal registration of your business
Bank account for your business
Link payment gateway with your bank account
Startmarketing your courses online on Facebook Twitter WhatsApp Instagram Google and other blogs
Items not considered as deposits, in terms of Rule 2(1)(c) of Companies (Acceptance of Deposits) Rules, 2014 read with Section 73 of the Companies Act, 2013.
Sl.
No.
Particulars
Amount
a.
Amount received from –
(i) the Central Government; or
(ii) a State Government; or amount received from any other source whose repayment is guaranteed by the Central Government or State Government; or
(iii) amount received from a local authority; or
(iv) amount received from statutory authority constituted under an Act of Parliament or a State Legislature.
b.
Amount received from –
(i) Foreign Governments; or
(ii) Foreign or international banks;
(iii) Multilateral financial institutions;
(iv) Foreign Governments owned development financial institutions;
(v) Foreign export credit agencies;
(vi) Foreign collaborators;
(vii) Foreign body corporates;
(viii) Foreign citizens;
(ix) Foreign authorities or;
(x) Persons residents outside India subject to the provisions of Foreign Exchange Management Act, 1999 (42 of 1999).
c.
Amount received as –
i) A loan or facility from any banking company; or
(ii) From the state Bank of India or any of its subsidiary banks; or
(iii) From a banking institution notified by the Central Government under section 51 of the Banking Regulation Act, 1949 (10 of 1949); or
(iv) A corresponding new bank as defined in clause(d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); or
(v) From a cooperative bank as defined in clause (b-ii) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934).
d.
Amount received as loan or financial assistance from –
(i) Public Financial Institutions notified by the Central Government; or
(ii) Any regional financial institutions; or
(iii) Insurance companies; or
(iv) Scheduled Banks as defined in the Reserve Bank of India Act,1934 (2 of 1934).
e.
Amount received against issue of commercial paper or any other instruments issued in accordance with the guidelines or notification issued by the Reserve Bank of India.
f.
Amount received by the company from any other company.
g.
Amount received and held pursuant to an offer made in accordance with the provisions of the Act towards subscription to any securities including share application money or advance towards allotment of securities pending allotment, so long as such amount is appropriated only against the amount due on allotment of securities applied for.
h.
Amount received from a person who, at the time of the receipt of the amount, was a director of the company or the relative of the director of a private company.
i.
(A) Amount raised by the issue of bonds or debentures secured by a first charge or a charge ranking paripassu with the first charge on any assets referred to in Schedule III of the Act excluding intangible assets of the company; or
(B) bonds or debentures compulsorily convertible into shares of the company within ten years.
j.
Amount raised by the issue of non-convertible debentures not constituting a charge on the assets of the company and listed on recognized stock exchange as per applicable regulations made by Securities and Exchange Board of India.
k.
Amount received from an employee of the company not exceeding his annual salary under a contract of employment with the company in the nature of non-interest bearing security deposit.
l.
Non-interest bearing amount received and held in trust.
m.
Amount received in course of , or for the purposes of the business of the company-
(i) As an advance for supply of goods or provision of services accounted for in any manner whatsoever provided that such advance is appropriated against supply of goods or provision of services within a period of three hundred and sixty five days from the date of acceptance of such advance.
(ii) As advance accounted for in any manner whatsoever, received in connection with consideration for immovable property under an agreement or arrangement, provided that such advance is adjusted against such property in accordance with the terms of agreement or arrangement.
(iii) As security deposit for performance of the contract of supply of goods or provision of services.
(iv) As advance received under long term projects for supply of capital goods except those covered under item (b) of sub- clause (xii) clause (c) of sub- rule (1) of rule (2) of the Companies (Acceptance of Deposits) Rules, 2014.
(v) As an advance towards consideration for providing future services in the form of a warranty or maintenance contract as per written agreement, if the period for providing such services does not exceed the period prevalent as per common business practice or five years, from the date of acceptance of such service whichever is less.
(vi) As advance received and allowed by any sectoral regulator or in accordance with directions of Central or State Government.
(vii) As an advance for subscription towards publication, whether in print or electronic to be adjusted against receipt of such publications.
(viii) Amount brought in by promoters of the company by way of unsecured loans in pursuance of the stipulation of any lending financial institution.
(ix) Amount received by a Nidhi company in accordance with the rules made under section 406 of the Act.
(x) Amount received by way of subscription in respect of chit under the Chit Funds Act, 1982(4 of 1982).
(xi) Amount received by company under any collective Investment scheme in compliance with regulations framed by the Securities and Exchange Board of India.
(xii) Amount of twenty five lakh rupees or more received by a start up company, by way of convertible note (convertible into equity shares or repayable within a period not exceeding five years from the date of issue) in a single tranche, from a person.
(xiii) Amount received by a company from –
(A) Alternate Investment Funds;
(B) Domestic venture Capital Funds;
(C) Infrastructure Investments Trusts;
(D) Real Estate Investment Trusts;
(E) Mutual Funds registered with the Securities and Exchange Board of India.
In this article, we will discuss starting kids clothing store business, Kids Clothing market is a never-ending growth market with certain challenges, if you are planning to venture into a new venture in the clothing segment, a kids clothing store can be amazing business to start with.
What type of store to choose
Under Kids Clothing store there are two types of models that generally work in the market, first one is a franchise-based business model and the other is an own-brand business model, both business models have their own pros and cons and we need to understand carefully before starting out.
Franchise Business Model
Under the Franchise Business model, store will be operated under your name and the brand name will be of reputed kids clothing brand, You will have to sign the franchise agreement, where all terms and conditions regarding the business will be mentioned, in most of the franchise agreements there are two costs associated with, one is initial franchise fee and other is % of sales from the store. For Example, you are taking a franchisee of a reputed kids brand in your area, you pay an initial franchise fee of Rs. 5 Lakh and then 5 % of sales turnover every month.
Own Brand Business Model
Under own brand business model, the business owner himself owns the brand and all advertisement and marketing costs, if you are planning to start a Kids Clothing store under your own brand name, you need to have your own brand, that you have to search, you will also need to register your brand under trademark laws so that no one other than you can use the brand without your permission.
Once you decide which Business model you choose for your Kids Clothing store business, you need to go for some legal registration for your business
Choosing Business Entity for Legal Registration for Kids Clothing Store
As per your requirements, you can register any of the above-mentioned entities for your kid’s clothing store, you can link on the link given for each business, and read about which business structure suits your requirements. if you are still confused then you can connect with us by submitting your request.
Obtain GST Registration
In most cases, you will need to obtain GST registration for your business, you can check out GST Registration requirements from here.
You will need goods suppliers you can supply you goods with high quality and best pricing, Ensure to have good margin on products sales. You can find suppliers on websites like Indiamart.
