As for those who know about the scope for CA, know that it is quite a lucrative career for those trying to seek new opportunities. It could be private practice or a run by a person under whom the other accountants work. Usually, the complexities of a financial structure and taxation on his/her business are extremely difficult for a person to understand; hence those running a CA service make it easy for them. In this article, you will get to know the necessity of Online CA Service in India for any low and large scale business person.
The role of the CA services in India is to explain the taxation structure (direct or indirect taxes), the levying of GST taxes, the consulting of financial and investment services and also management services. They also provide with bookkeeping services.
Not just this, there are different types of chartered accountants for particular services or ca services, like chartered accountant audit, valuation, financing, accounting, Licensing and business registration etc. To make things easy for people to reach out to them, various other online chartered accountancy services are available for people to get financial advisory without having to leave their business
Registration of a business can be a tricky process for those who are new to the world of entrepreneurship. And to save who are looking for the best place to get started, the Ministry of Corporate Affairs’ website is where you get the help. Usually, if you take the direct route, there are a lot of people who want to be fed unethical money to get where you want to be, so an online process is an easier alternative. To begin, one needs to finalize the product they’ll be selling or manufacturing and decide on a domain name or a company name to avoid setbacks.
Here are some of the major services which a Chartered Accountant renders in market.
PRIVATE LIMITED COMPANIES
Private limited companies are one of the most prevalent companies in current times. The private limited companies are governed by the ministry of corporate affairs in India. They are further regulated under the Companies Act, 2013 and the companies’ incorporation rules, 2014. A lot of companies and online portals help you with the steps to register your company.
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Below are some of the advantages of opting for setting up a private limited company:
1.Capital can be raised by the help of venture capital firms, investors, hedge funds and equity firms. So capital is never a roadblock for those starting to set a private limited company
2. Such companies are easily transferable, in terms of ownership; it can go from a domestic legal entity or a foreign entity. The board of directors who tend to take the most important decisions of the company can also be replaced by the decision of the shareholders
- A private limited company can just not disperse without any reason; the reasons could land up in a mess only if it does not comply with the rules of the government. Further, it can lose its existence due to the promoters, investors or shareholders allegations
- A board of directors of even 2 people is allowed for a private limited company
Further on, several other benefits come with setting up a private limited firm. There are another bunch of steps to follow, pay a certain amount of fees in terms of the scale of your company, and at last, file for a GST number to make your financial transactions easy from a legal perspective
However, there are many setbacks when it comes to private limited companies. They are as follows:
- In some cases, the number of shareholders cannot exceed to 200 or a stipulated number as may be prescribed.
- It cannot directly pledge or issue a prospectus to the general public in regards to sharing quotations
With the onset of the current government, Prime Minister, Narendra Modi has initiated and implemented the start-up India programmer; there has been a wave of startups. This has lead to a drastic increase in the field of startups. This programmer comes with a set of benefits like tax exemptions in some cases, benefits and ease in the pathways to set up their own business. One of the biggest problems it solves is that of unemployment. Previously there hasn’t been much support from the government regarding small business and start-ups, but now with the help and support of the government, people who are not even aware of the ins and outs of their business can glide through the paths of progress with the help of the start-up India programmer.
One person company (OPC) – Previously it was practically impossible to envision a company with a single member, but now under the section of 2(62) of the Companies Act, 2013, a company can be formed only with one director. Hence, the rules and regulations may not be the same as regards to a private limited firm.
Steps to acquire an OPC certificate include obtaining a digital signature certificate (DSC) along with documents like address proof, Aadhaar card, photo, PAN card, email id and phone number. A candidate is required to fill in a couple of other forms ahead of this and after that, you receive an approval. After that, you are eligible to operate your single-person company.
GST registrations – Alike the other legal processes to set up your business, acquiring GST also has a digital route to it. Just like the other processes filing your business for GST registrations requires passport-sized photographs, and documents like address proof, PAN card, email id, phone number, etc. The digital processes being quicker and hassle-free, it doesn’t require you to grease the palms of middlemen and make it way more lengthy. You receive the approval and your GST number after a couple of days and you are free to operate your business.
Income tax return –All the companies set up in the country are subjected to pay their income tax returns on the stipulated time. The amount paid as a tax is with respect to the annual turnover of the company or the business. In India usually, a financial year starts from 1st April and ends on 31st March. So the companies in India are expected to file their income tax return before the 30th of September.
TDS refers to tax deducted at source is the income tax that is deducted at the time of making a purchase, paying commission or paying rent, salary, professional fees, interest, etc. usually an employer or the head of an organization is subjected to file for a TDS. Hence, the heads of such firms are supposed to deduct the tax at the time of the transaction at the file it to the government authority at the stipulated time. The rules and regulations regarding income tax have been specified under the Income-tax act in 1961.
There are usually two types of TDS:
Form 16 – one that the employers levy on the employee, which is the deduction of the tax at the time of payment at the time of the transaction.
Form 16 A – for all the other TDS deductions made other than salary.
TDS prevents evasion of taxes and hence increases the government revenue to a large scale. It not only easy for the owner of the business to deduct the amount at the time of the transaction, but also it becomes convenient for the government authorities as the department doesn’t need to run behind companies to collect taxes.
ROC refers to the registrar of companies (India) that comes under the Indian Ministry of Corporate affairs which as the same suggests deals with the administration of the Companies Act 2013.
The ROC registers the names of the business registered under the Indian government. A business already registered cannot cease to operate until and unless its name is not strike off the ROC listings. Put in simple terms, the ROC keeps the records of the registered businesses.
Its further features include that the private limited companies need to file for their annual returns and details of their shareholder, relevant data, the board of directors and other financial details of the company.
Therefore, a person leading a business must be aware of CA services in India to keep the legal issues clear and make their business more productive every year.