Frequently Asked Questions (FAQ)
1. What are the different types of companies you can incorporate?
A company, as per the Indian Companies Act, 2013 is a company Incorporated under Companies Act, 2013 or under any previous company law. The Act prescribes following types of Companies in India
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Private Company
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Public Company
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One Person Company
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Section 8 Company
2. What is Trade License and why it is needed?
A trade license is a document/certificate that gives permission to the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location.It ensured that the business or trade is carried by adhering to all the standards of safety as issued by State Municipal Corporation. It protects the residents from being affected by any health hazards.
It has been made necessary by the government to carry out any particular business or trade in a particular area and to ensure that no one is carrying out any unethical business practices.
3. What is IEC Code and why it is needed?
Import Export Code (also known as IEC code) is a 10 digit identification number that is issued by the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India.
Companies and businesses must obtain this code to start a business that deals with import and export in the Indian Territory. It is not possible to deal with export or import business without this IEC code.
4. What is Professional Tax?
The respective state governments in India levy the professional tax on income from profession or employment. The professionals earning an income from salary or other practices such as a lawyer, teacher, doctor, chartered accountant, etc. are required to pay professional tax. In case of salaried and wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government.
5. What isMSME/Udyam Registration and what are its benefits?
Udyam Registration is a government registration for MSMEs, providing them with a unique Identity Number and a recognition certificate, to certify them as micro/small/medium enterprises. The primary motive behind this launch was to provide plenty of benefits to MSME businesses in India some of which is mentioned below:
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Bank Loan-Collateral Free, Lower Interest Rate
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Subsidies on Registration
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Protection form Delayed Payments
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Registered MSME‘s get exemptions under direct tax laws
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Concession on electricity bills
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Claim the expenses for obtaining ISO certification
6. What is SAFTA?
SAFTA (South Asian Free Trade Area) is the free trade arrangement of the South Asian Association for Regional Cooperation (SAARC). The primary objective of the agreement is to promote competition in the region while providing proper benefits to the countries involved (India, Pakistan, SriLanka, Afganistan, Bangaladesh, Bhutan, Maldives and Nepal). The agreement will benefit the people of South Asia by bringing transparency and integrity among the nations by reducing tariff and trade barriers. Ultimately it establishes a robust framework for regional cooperation
7. Why do we need FSSAI Registration & License?
FSSAI Registration - All petty food business operators required FSSAI Registration. Petty food business operator is any person or entity who:
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Manufactures or sells any article of food himself or a petty retailer, hawker, itinerant vendor or temporary stall holder; or
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Distributes foods including in any religious or social gathering except a caterer; or
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Other food businesses including small scale or cottage or such other industries relating to food business or tiny food businesses with an annual turnover not exceeding Rs.12 lakhs and whose:
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The production capacity of food (other than milk and milk products and meat and meat products) does not exceed 100 kg/ltr per day or
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Procurement or handling and collection of milk is up to 500 litres of milk per day or
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Slaughtering capacity is 2 large animals or 10 small animals or 50 poultry birds per day or less.