October 13, 2024

The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register themselves as part of the mandatory legal compliance. A Private Limited Company is the most common type of Company Registration in India, which is governed by the Companies Act 2013 under the Ministry of Corporate Affairs (MCA). It is mandatory to have a minimum of two directors and two shareholders. These directors and shareholders can either be the same or different individuals, with at least one director being an Indian Resident. Private Limited Company is a preferred choice for startups and businesses eyeing growth & expansion due to its flexibility in ownership and efficient management. What are the types of business structures in India? Proprietorship Firm- A proprietorship firm can be established and managed by a single person. Only one person runs the business, and it is ideal for small business owners with low investments. The entire control of the business will be with the sole proprietor, who can enjoy the profits, but he/she will also have to bear all the business losses.   Partnership Firm- Two or more persons enter into a partnership and establish a partnership firm. The partners of the firm equally share the profits derived from the business. They will also have to bear the losses of the firm. The partnership firm is regulated under the Partnership Act, 1932. It is ideal for small businesses run by two or more persons with low investment. One Person Company (OPC)-Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole proprietor to carry on his work and still be part of the corporate framework. It is registered under the Companies Act, 2013. It is ideal for small businesses who want to raise capital. Limited Liability Partnership (LLP)- An LLP is a separate legal entity where the liabilities of partners are only limited only to their agreed contribution. An LLP is established under the Limited Liability Act, 2008 with the Registrar of Companies (ROC). It has features of both the partnership firm and the company. It is ideal for businesses established by partners who want limited liability. Private Limited Company – A Private Limited Company in the eyes of the law is regarded as a separate legal entity from its founders. The directors of the company look after the affairs of the company. The shareholders (stakeholders) invest in the company and are part owners. A PLC is registered under the Companies Act, 2013 with the ROC. It is ideal for medium to big businesses who wish to raise capital. Public Limited Company- A Public Limited Company is a company established by seven or more members under the Companies Act, 2013. The directors are responsible for the affairs of the company. It has a separate legal existence and the liability of its members are limited to the shares they hold. It is ideal for medium to big businesses who wish to raise capital from the public. Why is it important to choose the right business structure? It is important to choose your business structure carefully as your Income Tax Returns will depend on it. While registering your enterprise, remember that each business structure has different levels of compliances that need to be met with. For example, a sole proprietor has to file only an income tax return. However, a company has to file an income tax return as well as annual returns with the Registrar of Companies. A company’s books of accounts are to be mandatorily audited every year. Abiding by these legal compliances requires spending money on auditors, accountants and tax filing experts. Therefore, it is important to select the right business structure when thinking of company registration. An entrepreneur must have a clear idea of the kind of legal compliances he/she is willing to deal with. Comparative List of Different Types of Business Structures in India Company type Ideal for Tax advantages Legal compliances Limited Liability Partnership Service-oriented businesses or businesses that have low investment needs Tax holiday for first 3 years under Startup India and benefit on depreciation Business tax returns and ROC returns to be filed One Person Company Sole owners looking to limit their liability Tax holiday for first 3 years under Startup India, higher benefits on depreciation and no tax on dividend distribution Business tax returns and ROC returns to be filed Private Limited Company Businesses that have a high turnover Tax holiday for first 3 years under Startup India and higher benefits on depreciation Business tax returns to be filed, ROC returns to be filed and mandatory audit to be done Public Limited Company Businesses with  a high turnover Tax holiday for first 3 years under Startup India Business tax returns to be filed, ROC returns to be filed and mandatory audit to be done What is a private limited company? In India, a private limited company is a privately held entity with limited liability, and it ranks among the nation’s most favored business structures. This popularity is primarily attributed to its numerous advantages, including limited liability protection, ease of formation and maintenance, and its status as a distinct legal entity. This encourages a prospective businessman to start company. A private limited company enjoys legal separation from its owners and necessitates a minimum of two members and two directors for its operation. Here are the key characteristics of a private limited company in India: Limited Liability Protection: Shareholders of a private limited company are liable only to the extent of their shareholding. Their assets remain safeguarded, even in cases of financial setbacks incurred by the company. Separate Legal Entity: A private company possesses its own distinct legal identity. It can own property, engage in contracts, and initiate or defend legal actions under its unique name. Minimum Number of Shareholders: A private company must have a minimum of two shareholders and cannot exceed 200 shareholders. Minimum Number of Directors: A private limited company necessitates a minimum of two directors. At least one of

Gaushala registration in Rajasthan is a formal process managed by the Directorate of Gopalan (Department of Cow Protection), which ensures that the shelters for cows (Gaushalas) meet the necessary standards for their care and protection. Eligibility Criteria Organization Type: The applicant must be a registered entity like a trust, society, or non-profit organization that works for the welfare and protection of cows. Land: The Gaushala must have sufficient land to accommodate and take care of the cows. This could be owned by the organization or leased. Facilities: The shelter should have facilities for feeding, water supply, and medical care for the cows. Proper hygiene and management practices must be followed. Documents Required for Registration Society/Trust Registration Certificate: Proof that the Gaushala is run by a registered society or trust. Land Documents: Proof of ownership or lease agreement for the land where the Gaushala is situated. This is important to show that there is space available for cow protection and care. List of Cattle: A detailed list of the number of cows currently housed in the Gaushala. Identity Proof: Government-issued identity proof (Aadhaar, PAN, etc.) of the authorized person applying for the registration. Bank Account Details: The organization’s bank account information, which will be used for receiving any financial assistance or subsidies from the government. Photographs: Recent photographs of the Gaushala showing the land, infrastructure, and cows being sheltered. Application Procedure for Gaushala Registration Step 1: Obtain the Registration Form You can visit the Directorate of Gopalan’s office or their official website to get the Gaushala registration form. Alternatively, the form may be available for download on the government portal. Step 2: Fill in the Application Form The application form will ask for details like the name of the Gaushala, address, contact information, details about the society/trust, land details, number of cows, and more. Ensure that all the information provided is accurate and complete. Step 3: Attach Required Documents Along with the completed form, you will need to submit the documents mentioned above, including registration proof, land documents, identity proof, bank details, and cattle information. Step 4: Submit the Application You can either submit the form online through the Directorate of Gopalan portal or submit it physically at the office of the Directorate of Gopalan in Rajasthan. If applying online, ensure that you upload all scanned documents. Verification and Inspection Process The officials from the Directorate of Gopalan will conduct a physical inspection of the Gaushala premises to verify the information provided in the application. They will check the land area, the number of cows, feeding and water facilities, medical care arrangements, hygiene standards, and the general condition of the cows. Based on their findings, a report will be generated, which will determine the approval of the registration. Benefits of Gaushala Registration Government Support: Registered Gaushalas can receive subsidies for cattle feed, medicines, and veterinary care. Grants and Schemes: They become eligible for government schemes and grants aimed at improving cow protection services. Recognition: Official recognition of the Gaushala provides legitimacy and trust, which helps in fundraising and securing donations from the public. Additional Guidelines and Information The government has strict policies regarding the management of Gaushalas to prevent the exploitation or mistreatment of cows. The Gaushala must adhere to all rules and guidelines laid down by the Directorate of Gopalan, including proper vaccination, medical care, and nutritional support for the cattle. Failure to comply with the regulations may result in penalties or cancellation of the registration. FAQs What is a Gaushala? A Gaushala is a shelter or sanctuary established for the care and protection of cows, particularly stray, abandoned, or non-productive ones. Gaushalas aim to provide cows with proper care, food, and shelter in a safe environment. Why is Gaushala registration required? Gaushala registration is important to gain recognition from the government and to be eligible for various benefits, such as grants, subsidies, and assistance for running the shelter. Registration also ensures transparency and proper management of the Gaushala.

The Maternity Benefit Act, 1961 is a legislation that protects the employment of women at the time of her maternity. It entitles women employees of ‘maternity benefit’ which is fully paid wages during the absence from work and to take care of her child. The Act is applicable to the establishments employing 10 or more employees. The Maternity Benefit Act, 1961 has been amended through the Maternity (Amendment) Bill 2017 which was passed in the Lok Sabha on March 09, 2017. Thereafter, the said Bill was passed in Rajya Sabha on August 11, 2016. Further, it received assent from the President of India on March 27, 2017. The provisions of the Maternity Benefit (Amendment) Act, 2017 (“Amendment Act”) came into effect on April 1, 2017, and the provision with regard to crèche facility (Section 111 A) came into effect with effect from July 1, 2017. An overview of the Maternity Benefit Act, 1961 The Maternity Benefits Act of 1961 was passed by the Union of India on December 12, 1961, following the country’s independence. The statute included conditional benefits for pregnancy, childbirth, and complications related to those, in conformity with the then-current international standards. The Act covered a lot of areas with meticulous precision and care was paid to many dimensions of considerations influencing maternity benefits, despite the fact that India was still a developing nation and in its 14th year of independence.The Maternity Benefit Act, 1961 governs maternity benefits in India. Every organisation with ten (10) or more employees is subject to the Act. According to the Act, maternity benefits are available to any woman who has worked for an organisation for at least eighty (80) days.The Maternity Benefit Act, 1961 aims to provide all the facilities to a working woman in a dignified manner, so that she may overcome the “state of motherhood honourably, peacefully, undeterred by the fear of being victimised for forced absence during the pre or postnatal period”, as was observed by the Supreme Court in the case of Municipal Corporation of Delhi v. Female Workers (Muster Roll) (2000).According to the Maternity Benefit Act of 1961, the employer must pay the beneficiary a medical bonus of up to 1,000 rupees if there is no prenatal confinement and no paid postpartum care. The Central Government has raised the medical bonus to 25,000 rupees. If the woman experiences a miscarriage or any other pregnancy-related complications, she is entitled to paid leave. A 30-day extra leave with pay is offered to the beneficiary upon verification of any ailment related to pregnancy. After reporting back to work, the mother is entitled to a break and is allowed two breaks to feed the child until they are 15 months old. The “facility of a crèche” has also been mandated to be available in convenient locations in every firm with fifty or more female employees. Women will be allowed to leave with pay for their tubectomy operation based on the proof provided.According to the Act, it is against the law for an employer to fire or dismiss a pregnant woman while she is away or on account of her pregnancy, or to give notice of a termination on a day when the notice will expire while she is away, or to change any of the terms of her employment to their detriment. According to the law, light work allotted to pregnant women and breaks for child feeding are not grounds for wage deductions.The statute is applicable to all businesses, including those that belonged to the government and those that employed people to do equestrian, acrobatic, and other acts for display in factories, mines, and plantations. Additionally, it applied to any store or business with ten or more employees. The inclusion of provisions for industrial, agricultural, and commercial establishments marked the act as a significant improvement over the rudimentary one from 1928. The Act covers all maternity benefits in the following sections: Section 4: Employment of, or work of, women prohibited during certain periods. Section 5: Right to payment of maternity benefits. Section 7: Payment of Maternity Benefits in case of death of a woman. Section 8: Payment of Medical Bonus. Section 9: Leave for miscarriage, etc. Section 10: Leave for illness arising out of pregnancy, delivery, premature birth of a child, miscarriage, medical termination of pregnancy or tubectomy operation. Section 11: Nursing Breaks. Section 12: Dismissal during absence of pregnancy. Section 13: No deduction of wages in certain cases. Section 18: Forfeiture of maternity benefits. Benefits covered under the Maternity Benefit Act of 1961 The Act requires the employee to refrain from hiring any known women in any place for the six weeks immediately following the day of the employee’s delivery, miscarriage, or medical termination of pregnancy. During the six weeks immediately following the day of delivery or miscarriage, no woman shall work in any company. The employer shall not require such women to perform any work unless requested to do so by the employed lady. Which negatively affects her pregnancy or the foetus’s development normally, Any work that could result in her miscarrying or otherwise have a negative impact on her health. Every woman has the right to maternity benefits, and her employer is responsible for paying them at the amount of the average daily income for the time she was actually away from work, i.e.,: The time leading up to the day of her delivery. On the day she gave birth and for the period immediately afterwards. Features of the Maternity Benefit Act, 1961 Duration of leave: A woman is entitled to twelve weeks of maternity leave under the terms of the Act, not more than six weeks of which may come before the due date. The ILO guideline at the time took this into account. Job protection: According to the guidelines of the 1961 Act, it has been ruled unlawful for an employer to fire or let go of a woman at any time during or because of her absence. However, the employer may notify the employee in writing if the dismissal or discharge is the result of serious wrongdoing. Remuneration during leave: Women who meet the requirements for

District Industry Center (DIC) under the Directorate of Industries and Commerce offers a subsidy loan scheme for young professionals under the guidance of the Ministry of Social Justice and Empowerment. Established in 1978, District Industries Centers’ program was initiated by the Central Government to promote tiny, cottage, village, and Small Scale Industries (SSIs) in smaller towns and their particular areas to make them available with all the basic needs, services, and facilities. DIC’s primary focus is to generate employment in rural regions of India. District Industries Centers are managed and operated at the district level to provide all the necessary support services to entrepreneurs or first-time business owners to start their own MSMEs. DICs also promote the Registration and Development of Industrial Cooperatives. Eligible Entities People belonging to scheduled castes, safai karamcharis families, and other backward classes (OBCs) Additional entities include physically disabled young professionals, such as engineers, doctors, pathologists, chartered accountants, advocates, physiotherapists, architects, pragmatists, etc. Objectives of DIC To spot the new and potential entrepreneurs and render assistance for them to kick start their ventures. To extend financial and organisational support to strengthen the rural and cottage industries. To improve the efforts of industrialisation in all rural areas. Generate more employment opportunities for the people. To centralise all the procedures required to start ventures by the entrepreneurs anew and reduce their time and efforts obligatory to acquire permissions, licenses, registrations, incentives etc. To ensure that all the benefits and schemes offered by the Central Government reach the entrepreneurs appropriately. To reduce the industrial and economic imbalance in the country and obtain its equality in every district. To strengthen the rural industrialisation and enhance the development of handicrafts. To promote export and marketing activities in the Districts through Export Guidance Cell available in the DICs. Provide financial assistance to the Industrial Co-operative Societies through the TAICO and other financial institutions. To endorse awards to MSMEs and artisans offered by the State and Central Government. Administration & Monitoring of DIC There are currently 31 DICs functioning in Tamil Nadu which is headed by the General Manager in the corresponding Districts. The Regional Joint Director supervises the functioning of the DICs in the Chennai District. The Project Manager, Manager (Credit), Manager (Economic Investigation), Manager (Village Administration) and an office Superintendent supports the General Manager in the functioning of the DICs. The Principal Secretary/Industries Commissioner & Director of Industries & Commerce is the responsible body to monitor the functioning and performance of the DICs. The committee assesses the periodical report submitted by the General Manager to appraise the performance and assist DICs in case of any difficulties in the implementation of schemes. Operations of the DIC Implementation of Quality Control Generating awareness among the consumers in Tamil Nadu regarding the usage of quality electrical products through the enforcement of Quality Control Order Centre for Domestic Electrical Appliances. The authorities ensure that the MSMEs manufacture, store, distribute and sell particular items without the recognition of Bureau of Indian Standard marking. Enforcement of Steel and Steel Products Orders Implementation of Steel and Steel Products (Quality Control) Order, 2012 to make sure that the quality products reach the consumers in the State. The order prohibits the manufacturers from the production, storage and distribution of Steel and Steel products that are not mentioned in the norms of the Bureau of Indian Standards. Restoration of non-operative MSMEs The Ministry of Micro, Small and Medium Enterprises, Government of India, formed ‘Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises’ and gazetted the notification on May 29, 2015. The Notification is to accelerate the funding process for the MSMEs and assist them in promoting and developing their business. The duo RBI and the Ministry of MSME brought in the modifications to make it compatible with the already functioning regulatory guidelines on ‘Income Recognition, Asset Classification and provisioning pertaining to Advances’ released to Banks by RBI. The Empowered Committee for MSMEs has been constituted to restore the non-functional MSMEs as per the framework of RBI. The State Level Rehabilitation Committee (SLRC) has been established under the Chairmanship of the Secretary of Government, MSME, to analyse the cause of sickness of MSMEs and provide advisory measures for their restoration. A quarterly review meeting is conducted to oversee the enforcement of the Rehabilitation of non-functional MSMEs in the State. Establishment of Micro Small Enterprises Facilitation Council As per the advise from the Ministry of MSME and Micro, Small and Medium Enterprises Development Act, 2006, the state governments can establish facilitation councils. Government of Tamil Nadu have established four Regional Micro Small Facilitation Council in the state. The Council which are located at Chennai, Tiruchirapalli, Madurai and Coimbatore aims at encouraging fast settlement of unpaid balances of the goods distributed to major industrial units. FAQs What is a District Industries Centre (DIC)? A District Industries Centre (DIC) is an institution set up by the government in each district to promote and facilitate the growth and development of small-scale and medium-sized enterprises (SMEs) and cottage industries. What are the main functions of DICs? Providing financial assistance and guidance to entrepreneurs. Facilitating the registration of small-scale industries. Offering information on various government schemes and incentives. Organizing training programs and workshops for skill

A Fixed Deposit (FD) Calculator calculates the FD maturity value and interest income based on principal amount, FD interest rates and tenure. Online FD calculators of some banks additionally allow users to calculate their FD interest income based on the interest payout options (monthly, quarterly, half-yearly, yearly and reinvestment). How can a Fixed Deposit calculator help you? Easy to use: Using an online FD interest calculator for FD maturity and interest computation is easy. Users are usually required to enter a few basic details such as the principal amount, FD tenure and compounding frequency (quarterly, half-yearly and annual compounding) in the online calculator to get results. Know the maturity amount: Before investing in an FD scheme, prospective depositors should know the expected amount in advance so as to determine whether the investment scheme will serve their investment goals at maturity or not. Accurate calculation: Using an online Fixed Deposit calculator for calculating FD interest amount and maturity amount saves depositors from complex calculations and eliminates the risk of error caused due to miscalculations. Make comparisons for FD selection: FD interest rates vary across banks and NBFCs/HFCs. Using an Fixed Deposit calculator can help depositors calculate and compare maturity amounts and interest income after considering FD features like tenure, interest rate, payout option and compounding frequency (quarterly, half-yearly, annual compounding) offered by various banks and NBFCs/HFCs. This would further help depositors choose the optimum FD scheme after considering the above-mentioned FD schemes. The formula to determine FD maturity amount The fixed deposit calculator for simple interest FD uses the following formula – M = P + (P x r x t/100), where – P is the principal amount that you deposit r is the rate of interest per annum t is the tenure in years For example, if you deposit a sum of Rs. 1,00,000 for 5 years at 10% interest, the equation reads – M= Rs. 1,00,000 + (1,00,000 x 10 x 5/100) = Rs. 1,50,000 For compound interest FD, the FD return calculator uses the following formula – M= P + P {(1 + i/100) t – 1}, where – P is the principal amount i is the rate of interest per period t is the tenure For example, if you take the same variables, the compound interest FD will accrue, M= Rs. 1,00,000 {(1 + 10/100) 5-1} Or, Rs. 1,61,051 FAQs What is an FD calculator? An FD calculator is an online tool that helps you estimate the maturity amount and interest earned on a fixed deposit based on the principal amount, interest rate, tenure, and compounding frequency. How does an FD calculator work? An FD calculator works by applying the formula for compound or simple interest. You input details such as the deposit amount, interest rate, tenure, and compounding frequency, and the calculator instantly shows the maturity amount and interest earned.

Section 194C states that any person responsible for paying any sum to the resident contractor or sub-contractors for carrying out any work (including the supply of labor), in pursuance of a contract between the contractor and the following: The Central Government or any State Government Any local authority Any Statutory Corporation Any corporation established by or under a Central, State or Provisional Act Any company Any co-operative society Any authority constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the needs for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages or for both Any society registered under the Society Registration Act, 1980 or under any such corresponding law to the Act in any Part of India Any trust Any university or deemed university Any firm Any Government of a foreign state or foreign enterprise or any association or body established outside India Any person who is an individual, HUF, AOP or BOI, who has total sales from the business or profession exceeds 1 crore or 50 lakhs during the previous Financial year respectivley. Section 194C Section 194C of Income Tax Act, 1961 deals with the TDS that has to be deducted from specific payments made to resident contractors and sub-contractors. Generally, individuals paying the contractors or sub-contractors are entrusted with the responsibilities of deducting TDS.  As a result, both parties involved, i.e. a contractor and a payer (party or person) need to be aware of this Section of ITA to avoid the implications of not deducting the same. Also, contractors should find out about Nil or lower TDS provisions to protect their earnings from eroding.  Who is a ‘Person’ Under Section 194C? Under Section 194C, a ‘person’ can be described as an individual who enters into a contract to get work done against payment. In general, a person can denote any of these following – A company Trusts Firms A university A local authorised body The Central Government or the State Government  A corporation A co-operative society A registered society Other than these, an authority that has been incorporated to fulfil household requirements can be termed as a person under Section 194C of Income Tax Act. What Constitutes as Work Under Section 194C? As per Section 194C, ‘work’ may constitute any of these following – Advertising Broadcasting and telecasting Catering Carriage of passengers or goods by any transportation mode besides railways. Supplying or manufacturing goods as per the specifications or requirements shared by the customer. It includes goods that have been manufactured using the materials purchased from customers or their associates. However, it does not include supply or manufacturing of goods made using materials that are not purchased from the customer or its associates.  Also, Section 194C TDS elaborates that any person paying a resident individual to carry out a specific work as per an agreement in exchange of payment is liable to deduct TDS. The Section also defines the contractor and states that it is an individual who agrees to become a part of a contract to carry out work or supply workforce. On the other hand, a sub-contractor is an individual who has decided to enter into a contract to either carry out a part or entire work. Also, a subcontractor may enter into a contract to supply the workforce to a given project.   Provisions for TDS Deductions Under Section 194C Concerned entities can deduct TDS under Section 194C of Income Tax Act only under these following conditions – The concerned contractor should be a resident Indian as per Section 6 of the Income Tax Act’s guidelines. Payments made to contractors must be carried out by individuals mentioned in the provision of Sec 194C.  Payment made should be to conduct any work that includes the supply of workforce. Concerned entities must pay as per the clauses mentioned in their contract that is agreeable to both the contractor and the payer. Notably, such a contract can either be in a written or oral format.  At any time, the amount of payment between the two parties should not exceed Rs. 30,000. When the advance payment made to a contractor is more than Rs. 30000 the payer has to make sure that TDS is deducted from the paid amount. If at any time the payment made by the payer to the contractor exceeds Rs. 75000 in a fiscal year, the payer must ensure that TDS is deducted from the payment. Other than these, if there is a situation where the contractor’s payment does not exceed Rs. 30000 at first but subsequently exceeds it, the payer has to deduct TDS accordingly. Notably, TDS is deducted when payment is credited to the payee’s account, in cash or by the issuance of a cheque or any other mode (whichever is earlier).  What is the meaning of contractor and subcontractor? Contractor means any person who enters into a contract with the central/state government; corporation; company; local authority, or a cooperative society to conduct any form of work (including the supply of manpower). Subcontractor means a person who engages in a contractual agreement with the contractor to perform, or provide labor for the execution of all or a portion of the work undertaken by the contractor under a contract with any of the authorities, or to supply labor, in whole or in part, as specified in the contractor’s agreement with any of the authorities mentioned in this section. Conducting either all or part of the work, which the contractor has agreed to complete Supplying manpower for all or part of the work taken by the contractor. What is the TDS rate that needs to be deducted u/s 194C? The rate of tax deduction u/s 194C is- – 1% (when payment is given to Individual/HUF) or – 2% (when given to others). Nil for payment made to transporters And the time of deduction is earlier of – The credit of income to the account of the payee (receiver) or – Actual payment (in cash, cheque,