Siddhesh Advisors

GST Registration

As per the GST Council, entities in the Northeaster and hill states with an annual turnover of Rs.20 lakhs and above would be required to obtain GST registration. For all other entities in rest of India would be required to obtain GST registration, if annual turnover exceeds Rs.40 lakhs. Entities required to obtain GST registration as per regulations must file for GST registration within 30 days from the date on which the entity became liable for obtaining GST registration.

Companyserv.com is the leading business services platform in India, offering a variety of services like GST registration, GST return filing, private limited company registration, trademark filing and more. Companyserv.com can help you obtain GST registration in India. The average time taken to obtain GST registration is about 3 - 5 working days, subject to government processing time and client document submission. 

Limited Liability Partnership Is The Preferred Choice For Businesses Who Want Limited Liability And A Separate Legal Entity

Limited Liability Partnership has been introduced in India by way of Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to the owners

A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization and one partner is not responsible or liable for another partner's misconduct or negligence.

Therefore, all partners have a limited liability, for each individual's protection within the partnership, similar to that of the shareholders of a corporation.

Therefore, all partners have a limited liability, for each individual's protection within the partnership, similar to that of the shareholders of a corporation.

However, unlike corporate shareholders, the partners have the right to manage the business directly. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP's employees or other agents. LLP is one of the easiest forms of business to incorporate and manage.

However, unlike corporate shareholders, the partners have the right to manage the business directly. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP's employees or other agents. LLP is one of the easiest forms of business to incorporate and manage.

LLP has a separate legal entity, liable to the full extent of its assets, the liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or un-authorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner's wrongful business decisions or misconduct.

The Sole Proprietorship Is A Popular Business Form Due To Its Simplicity, Ease Of Setup, And Nominal Cost But Is Not A Legal Entity

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. A sole proprietor need only register his name and secure local licenses, and the sole proprietor is ready for business.

A distinct disadvantage, however, is that the owner of a sole proprietorship remains personally liable for all the business’s debts. So, if a sole proprietor business runs into financial trouble, creditors can bring lawsuits against the business owner.

There is no mechanism provided by the Government of India for the registration or incorporation of a Proprietorship. Therefore, the existence of a proprietorship is established only by tax registrations and other business registrations that a Proprietorship is required to have as per the rules and regulations.

MSME Registration (Udyam Registration)

Udyam Registration or MSME registration is a certificate provided to micro, small, medium-sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED). Udyog Aadhaar used to be referred to as MSME registration earlier. Now, the process for obtaining MSME registration has been merged with Udyog Aadhaar registration and made online by the Government. The main objectives of the MSME department with respect to providing Udyog Aadhaar registration are as follows:

• To enable the micro, small and medium enterprises to compete with international competition efficiently;

• To promote the growth of micro, small and medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;

• To extend the benefits of various government scheme at one stop to the SSI units;

• To safeguard SSI from financial harassment in the hands of big industries.

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Udyam registration is provided free of cost by the Government and its simple and easy to obtain online. After obtaining Udyam Registration, a business can enjoy the following benefits:

• The applicant will receive financial support for participating in foreign expos to showcase their products.

• The applicant will also be eligible for government subsidies.

• Registration would facilitate the hassle-free opening of current bank accounts in the name of the business.

• It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.

• Easier sanction of bank loans at lower interest rates.

Import Export (IE) Code India is a registration of an import and export companies with Indian Custom department that import and export commodities from India. IE Code is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India. IE Code application must be made to the Directorate General of Foreign Trade along with the necessary supporting documents. Once, the application is submitted, DGFT will issue the IE Code for the entity in 15 - 20 working days or less.

IE Code registration is permanent registration which is valid for a lifetime. Hence, there will be no hassles for updating, filing and renewal of IE Code registration. It is valid until the business exists or the registration is revoked or surrendered. Further, unlike tax registrations like GST registration or PF registration, the importer or exporter does not require to file any filings or follow any other compliance requirement like annual filing.

As IE code registration is one-time and requires no additional compliance, it is recommended for all companies and LLPs to obtain IE code after incorporation.

An Import Export Code is required for import of any type of goods by a business. However, the following category of persons are exempted from obtaining an IE Code:

• Importer and export by central Government or agencies or undertakings for defence purpose or other specified lists under Foreign Trade (exemption from the application of Rules in certain cases) Order, 1993.

• Import or Export of Goods for personal use.