[ESTABLISHING A BUSINESS ENTITY IN INDIA]
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and registrations, such as Goods and Services Tax registration. 3.2 Immediate Requirement: Setting Up – Compliances usually on-going/time based: A. Under the Income Tax Act, 1961, every entity (including a company and an LLP) is required to have a Permanent Account Number (“ PAN ”), Tax Deduction and Collection Account Number (“ TAN ”) and deduct tax at source (“ TDS ”) for all the payments made to its employees at the percentage given under the relevant provisions of the Income Tax Act, 1961. B. Declaration of Commencement of Business – Every company is mandatorily required to file a certificate of commencement of business within 180 (One Hundred and Eighty) days from the date of incorporation of the company. There is no such requirement for an LLP. C. Board Meetings/Annual General Meeting (“ AGM ”)/ Resident Director – Every company is mandatorily required to hold 4 (four) Board meetings and 1 (one) AGM in a year while there is no such requirement for an LLP. It is also mandatory for every company and LLP to have at least 1 (one) resident director or designated partner, respectively. D. Every Listed Company /Public Company with paid up share capital of INR 100 Crores (Indian Rupees One Hundred Crores) or more / Public Company with turnover of INR 300 Crores (Indian Rupees Three Hundred Crores) or more shall have at least 1 (one) woman director. E. Listed Company are also required to appoint at least 1/3 (one third) of total
number of directors on their Board of Directors as independent directors. Further, certain classes of public companies such as public companies with paid up share capital of INR 10 crore (Indian Rupees Ten Crores) or more and public companies having turnover of INR 100 crore (Indian Rupees One Hundred Crore), or more are also mandated to have at least 2 (two) independent directors. 3.3 Filings with the registrar/reporting requirements: Example: A. Annual Filing e-Forms: Form for filing annual return by a company having a share capital, particulars of annual return for the company not having share capital, form for filing annual return by an LLP, form for statement of account and solvency by an LLP, form for filing balance sheet and other documents, form for filing Profit and Loss account and other documents, etc., have to be filed with the jurisdictional Registrar of Companies annually; B. Return of Particulars of Directors and Key- Managerial Personnel’s (“ KMP ”) – Return containing such particulars and documents of the director and other KMP shall be filed with the Registrar within 30 (thirty) days from the date of appointment/resignation of every director and KMP and also within 30 (thirty) days of any change taking place; C. Return of appointment of Managing Director (“ MD ”), Whole Time Director (“ WTD ”) and Manager, Chief Executive Officer (“ CEO ”), Company Secretary (“ CS ”) and Chief Financial Officer (“ CFO ”)– Company is required to file a return within 60 (sixty) days of the
ILN Corporate Group – Establishing a Business Entity Series
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