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Start a Business

Indian Entrepreneurs who wish to set up a new business seek our advice on the type of the entity to set up. There are many types ranging from proprietary concerns to private limited companies. It is really confusing to choose among them for a start-up business. This is where our expertise comes into play. We are providing services in the area of setting up business for over three decades! On a personal interaction with the prospective clients, we suggest the most suitable model for their type of business.

 The entrepreneurs can choose the following type of entities, namely                                                                        

  • Proprietary Concern
  • Partnership Firm
  • Private Limited Company
  • Limited Liability Partnership
  • One Person Company (OPC)
  • Trusts and Societies
  • Association of Persons

Proprietary Concern

Starting a proprietary concern or proprietary firm is a simple process. There is no formal registration to be done. An Individual / sole trader (or one person firm) intending to do business or profession, can register the concern under Goods and Service Tax Act (GST), Profession Tax Act or Shops and Establishment act or Udyog Aadhar (MSME).

PARTNERSHIP FIRM

Persons who have entered into a partnership with one another are called individually "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm-name".

 To commence a partnership firm, atleast two persons are required. The firm doesn’t have a separate legal entity like a company. The firm is a collective name given to individual partners.

 A firm is registered under Registrar of Firms, situated in the respective jurisdiction.

 We at Balakrishna and Co, CA firm have the expertise in setting up partnership firms in Bangalore. 

Private Limited Company

Setting up a Private Limited Company in India requires a minimum of TWO shareholders and TWO directors. The shareholders can be the directors of the company. One of the directors, however, should be a Resident Indian.

  Choosing the name of the company is a bit tricky! While choosing the name, one has to ensure that the Name

  • Does not resemble the name of any other already registered company
  • Does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950) by availing the services of checking name availability on the portal
  •  Select, in order of preference, at least one suitable name upto a maximum of six names, indicative of the main objects of the company                               

Limited Liability PartnerShip

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.

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

        We at Balakrishna and Co., have the experience of incorporating Limited Liability Partnership firms in Bangalore. Generally, professionals such as Doctors, Lawyers prefer LLP over Companies.

Trusts and Societies

A trust can be registered under Indian Trust Act, 1882 and a society can be formed under the provisions of Societies Registration Act.

  • How many people are required to start a Trust?

At least two trustees are required to register a public charitable trust. However, a minimum of seven members are required for formation of a society.

  • Is there any annual filing to be done?

There is no requirement for annual filing in case of Trusts. However, societies must file annual returns with the Registrar of societies.

Association of Persons

Association of Persons (AOP) is an entity formed by two or more persons, for a common purpose with an objective of producing Income or profits.

An association of persons (AOP) or a body of individuals (BOI), whether incorporated or not, is treated as a ‘person’ under section 2(31) of the Income-tax Act, 1961. Hence, AOP or BOI is treated as a separate entity for the purpose of assessment under the Income-tax Act.

  • What type of activities is generally done through an AOP?

        We have come across situations where a group of individuals join together for conducting a one-time event such as seminar, conference, etc., forms an AOP.

  • Is it mandatory to file return of income?
        Every AOP/BOI whether incorporated or not has to file the return of income if his total income exceeds exceeds the basic tax exemption limit.

Accounting & Compliance

Book Keeping

Book keeping and preparation of final accounts involving designing transactions process, transaction accounting process, implementation and review of entire process on a periodic basis to ensure effective and efficient accounting process.

Periodic MIS Reporting

Reporting of financial records/statements- Monthly, Quarterly, Bi-annually, to measure your company’s performance.

Financial Analysis and Reporting

While the upkeep of your books is vital data management, proper analysis is going to help you with key managerial decisions and proper disclosure to relevant stakeholders. Our team of chartered accountants and business professionals can sort through your data and help you with good disclosures and excellent review and analysis of what your accounts say about your business. Inject confidence in your stakeholders with good reporting.

Preparation of Financial Statements

When we review your books and financial statements, not only do we verify the figures and ensure proper disclosure, but we also perform tried-and-tested procedures like financial report auditing due-diligence programs and ensuring statutory requirements to maximise the quality of financial reporting.

Budgeting and Cash Forecasting

We can provide you assistance with complex financial activities like ascertaining or allocating your financial resources in a proper and methodical manner by planning for your revenues, expenditures and cash flows well in advance. Avoid cash dearth and even make returns on cash surpluses and avoid any financial or operational harm by being ready with our careful analysis.

AUDITING

Statutory Audits

Books of account of every company is required to be audited as prescribed under companies Act 2013. LLP's books of Account are required to be audited as per the provisions of LLP Act, 2008, if the turnover of LLP exceeds Rs 40 lakh per annum. Audit comprises of reviewing and certifying compliance with due accounting procedures, prescribed accounting standards, accounting and auditing guidelines prescribed by the Institute of Chartered Accountants of India.Statutory Audits are audits which are mandated by various laws applicable to business. 

Internal Audit

Internal audit is a tool used by the management of the company to review and evaluate internal checks and internal control system in the company and check compliance with such internal control systems and guide management in initiating corrective action. Internal audit covers the following areas:

  • Revenue Audit – Income Leakage Audit
  • Compliance Audit – Taxation and other regulatory
  • Payroll Audit
  • Reimbursement Audit
  • Procurement Audit
  • Systems Audit – EDP Audit
  • Stock Audit

Income Tax Audit

Income Tax Act, 1961 requires, Persons (individuals, firms or companies) whose turnover during the financial year exceeds limits specified below to get their books of accounts audited by a Independent Practecing Chartered Accountant:

  • For persons carrying on business Rs. 2 Crore or 20 Million
  • For persons carrying on profession Rs. 50 Lakhs 0.5 Million
As India follows self-assessment method to assess income and taxes payable by a person, it is the responsibility of the person to follow all the rules prescribed under the Act. Tax Audit Service is a mechanism by which the Income Tax department would enforce the law effectively through an independent agency by ensuring that income declared in the return is accurate.

TAXATION

Direct Taxation

The tax world is changing and in today's global economy, effective tax advice and planning can give your business a competitive advantage. PKP & CO offers a wide range of Tax services that are designed to offer clients effective tax planning.

    PKP & CO as a firm of chartered accountants provide pragmatic solutions for multinational companies, Indian companies, expatriates, Non-Resident and Resident Indians. In this endeavour we are immensely helped by our extensive knowledge of taxation practices and procedures followed worldwide and our regular interaction with the Indian tax authorities. Our firm focus on the following areas in the direct taxation:

  • Corporate Tax Return
  • Personal Income Tax return
  • Partnerships, Trusts Income Tax Returns

Indirect Taxation

Managing indirect tax compliance by a business has been very complex in India due to multiple laws, sub ordinate legislation (rules, notifications, circulars) driven compliance and frequent amendments therein. Though the GST has subsumed multiple indirect tax laws, the compliance need is high. All periodical returns, statements, intimations, notices and reply to such notices would be automated in GST. The credit matching concept in GST is a significant task and credit not matched could result in denial of credit. Therefore, it is important for the organisations to ensure error free compliance.

   Our experience in indirect taxes would help us to understand the new requirement in GST law as well. We provide compliance support to clients of all size. Our tax compliance and reporting team provides high-quality, flexible and cost-effective solutions to tax compliance. Our approach in compliance is tailored to clients’ needs aimed at ensuring error free compliance. Involvement of senior members of the firm means we can use our experience and skills to identify opportunities to improve tax processes and deliver tax savings.

Payroll Service

Payroll Process and Management refers to the arrangement of dealing with the wages and pay of the considerable number of employees in a company. It is one of the most significant segments of the Human Resources (HR) division, and accordingly, structures a basic piece of each company.

        

    Chennai is an attractive business sector for companies and is rushed by individuals from everywhere throughout the world consistently. With a populace of more than 9 million, the country handles a huge utilised workforce.

  • Security and Confidentiality
  • Cost-Effectiveness
  • Evaluates Risks and Protects Assets