Equity Funding (Dos and Donts: 7 Points Cheat Sheet for Equity Funding)

In our last edition, we had discussed about the basics of funding (http://ca4you.in/blog/2016/04/19/funding-for-start-ups/) and Debt Funding (http://ca4you.in/blog/2016/04/25/debt-funding-dos-and-donts-7-points-cheat-sheet-for-debt-funding/)

In this article we will discuss about basic requirements for Equity Funding

1-    Register New Company with proper attention to having Core Team as Directors. Lot of entrepreneurs make their spouse (who is not part of the core team) as Director/Shareholder of register Private Limited Company. This is not the right thing to do as Venture Capitalist looks at the team as their main criteria to invest

2-    All the compliances of your Private Limited Company Incorporation Online should be up to date. This gives investors an impression that you mean business

3-    The IM/Business Plan has to be of “Top of the Class” (They are your only asset) and if making presentation is not your forte, go for consultants. The business plan has to be very clear on Marketing Strategy, Future Expansion, USP etc. etc. What investors look for is how scalable is your business (i.e. how big is the market you are targeting?)

4-    Get Online Business Registration for all your vendors and also do the same with your clients. Investors check your current list of vendors and clients

5-    Have fair expectation of the valuation you are looking for and have reason (good enough to asking for the valuation)

6-    Look for investors who invests amount you are looking for, have interest in your line of business and are not ‘overly’ exposed in your sector. The best way to do so is to get registered to funding news sites

7-    Start looking funds for your register Private Limited Company as early as possible (Do not wait for the right time to come, This is the correct time)

Hope this article was informative. For more info visit: www.ca4you.in

Also call us at +91 8447265465 or mail us on vivek@rrs-group.in for any further query

Indian Tax Payers ((7 Points Cheat Sheet about Tax Payers)

HIGHLIGHTS

1- 1.25 crore, approximately 1% of the population paid taxes in 2012-2013

2- About 5,400 individuals paid over Rs. 1 crore as income taxes in the same year

3- Total of 2.87 crore individuals filed income tax returns in 2012-13, but 1.62 crore of them did not pay any tax

4- The average Tax Payable was about Rs 21,000 for a vast majority of nearly 89 per cent taxpayers (over 1.11 crore). The cumulative amount stood at over Rs. 23,000 crore.

5- The three individuals in the top-bracket of Rs. 100-500 crore paid a total tax of Rs. 437 crore -- resulting in an average tax outgo of Rs. 145.80 crore.

6- The data further said that the bulk of individuals who filed returns for the assessment year 2012-13 earned an annual salary between Rs. 5.5 lakh and Rs. 9.5 lakh.

7- This includes Taxes by individuals only and does not include Register Private Limited Company, LLP Incorporation, One Person Company Registration, Partnership Firm Registration, Online Business Registration etc.

Hope this article was informative. For more info visit: www.ca4you.in

Also call us at +91 8447265465 or mail us on vivek@rrs-group.in for any further query

Online Business Registration (7 Point Cheat Sheet to register as vendor for major e-com players)

With e-commerce boom in India, there is ample scope for lot of those individuals who are looking to increase their monthly income or entrepreneurs who are looking for an alternate channel to sell their products. E-Commerce giants such as Urbancalp, Uber Big Basket, Amazon, Flipkart who sells various range of products/Services including Grocery items, FMCG, Handicrafts, Electronic Items and services such as Cab Services, Company Registration Services etc. 

We will highlight some of the points you have to keep in mind so that you can gain maximum out

of selling at such sites:

1-    Register new company if you do not have any existing form of registration of company in India. Also get company registered close to your location. For eg. if your business is situated in Delhi, get your Firm Registration in Delhi or One Person company registration in Delhi or Partnership firm registration in Delhi or LLP Incorporation in Delhi. We will suggest a Private Limited Company Incorporation as it is most Tax Efficient

2-    Get your Tax Registration (VAT/Service Tax Registration) done. Not only it is mandatory compliances of Government but it also is a requirement for many a e-commerce companies. Infact you can get some Credits for these Returns

3-    Keep a robust accounting and book-keeping system (even it is excel based) as you are dealing with conglomerates and it becomes very difficult to sort out small issues or discrepancies which crop up later

4-    Try to be enrolled in as many competitors sites as possible. E-Commerce companies are known for meteoric rise as well as fall and hence never out your eggs on 1 basket and try to partner with as many competitor website as possible

5-    Look for right balance of margin and volumes without compromising on either. Never compromise much on Margins as you don’t have VC’s money to ‘burn’

6-    Try to have a strong account book as this will enable you to get Working Capital loans later on

7-    Inventory Management is the key to success for such businesses and try to use tools and software provided by the e-commerce companies to best of your advantage.

Hope this article was informative. For more info visit: www.ca4you.in

Also call us at +91 8447265465 or mail us on vivek@rrs-group.in for any further query

Why Online Business Registration/ Traditional Business Fails in India (7 Point Guide)

Thousands of entrepreneurs start their journey but very few of them make it big. Apart from Luck factor, which is not in your control, there are few things you can do correct.

1-    Have a clear plan and stick to it for atleast 3 months before evaluating it and making any changes in it if required. Too frequent a change can be confusing for you as well as your employees and clients

2-    Watch out closely at your Cash Flow. At any time, you should have a cash flow of atleast 8-9 months if not more

3-    BootStrap, bootstrap, bootstrap till as long as possible. It is easy to spend money on things which are not your immediate concern. Who said entrepreneurship is easy!!!

4-    Focus on getting First 200 clients if you are a B2B enterprise and 1000 unique transactions if you are into B2C venture. They will form base of your growth. Serve them well.

5-    If you already do not have a Private Limited Company Incorporated or LLP Incorporated, get your Online Company Registration done as soon as possible. This will definitely help you in long run and especially for raising funds

6-    Hire Right. Never Hire on speculation of future business growth (apart from Business Development or Marketing guys). It will be an undue pressure on your resources and would not be just on the employees also

7-    If you have a LLP Incorporation or a Firm Registration or a One Person Company Registration or a Private Limited Company Registration Online, it is critical to follow regular accounting and book-keeping practices.

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#StartUp Accounting Gyaan: Get ready to follow your dreams//Part 2

#StartUp Accounting Gyaan: Get ready to follow your dreams

Part 2: Legal Structures to Start your business:: One Person Company (OPC)

  In our last edition we had discussed about the most basic form of Company Registration i.e. Proprietorship Firm/Partnership Firm (http://ca4you01.blogspot.in/2016/02/startup-accounting-gyaan-get-ready-to.html)

This edition will focus on the newest kid on the Block i.e. One Person Company (OPC) which was introduced for people who prefers going solo but are looking for something more serious than a 'basic' proprietorship firm.

WHY OPC?
One Person Company (OPC), which was launched in 2014 to provide a better platform for individuals who wish to have a business with better credibility than a proprietorship firm. Apart from giving single promoter full control over the company, OPC also limits the liability of the owner. OPC has no chance of raising equity funding or offering employee stock options. OPC can be converted into Private or Public Limited Company.

Advantages:
Liablity: Scared of implication? Don't Worry! Director's (Owners) Liability is Limited in case of any defaults
Future Options: Have plans for Future? Can be converted into Private Limited Company whenever required
Credibility: Big Corporates wary to do business? Better credibility than a Proprietorship company
Tax Advantage: Want to be Tax efficient? More Tax Advantages than a Proprietorship company

TIME TAKEN:

 10 Working Days (Appx)

STEPS TO REGISTER  

Step 1: DSC for 1 director + DIN for up to 1 director
Step 2: Name Confirmation from ROC
Step 3: MOA/AOA Drafting
Step 4: Certificate of Incorporation
Step 5: PAN & TAN
Step 6: Beginning is Half Done...


COST: 

Rs 12,500/- in Delhi-NCR

NUTSHELL:

Best suited for Indivdiuals who are sure of their idea but not sure about working alone or going with partner (s). 

Hope this article was informative. For more info visit:http://ca4you.in/company_registration.php#tab5

 Also call us at +91 8447265465 or mail us on vivek@rrs-group.in for any further query

In Part 3, where we will discuss LLP