Latest Blogs

Bank Account in India

Q. Is there any physical existence is necessary for opening a bank account in india?

A.  There is no physical existence is necessary for opening a bank account in India.

Q. In how many days bank Account needs to be open in India after incorporation of company?

A.  Pursuant to Section 10A(1)(a) of the Companies Act, 2013 and Rule 23A of the Companies (Incorporation) Rules, 2014, every company need to file INC-20A for Subscribers proof of payment for value of shares within 180 days of incorporation . Therefore company needs to open a bank account

 

Q. Explain the documents required to open a Bank Account in India by various entities?

 

A. KYC guidelines for Liaison/ Representative office/ Project office/ Branch office Accounts:

  1. Certificate of Incorporation duly notarised by the Indian Embassy/ notary public in the country of registration.

Note: If COI and company formation documents are in any language other than English, then the English version of the COI or company formation documents must be attested by the Indian Embassy/ notary public in the country of registration.

  1. Communication addresses proof of the entity. Note: Only Indian communication address proof is accepted.
  2. Current landline/ mobile number and e-mail ID of the entity.
  3. Permanent Account Number (PAN) of the entity.
  4. Latest passport-size colour photograph of each of the authorised signatories.
  5. A copy of one valid photo identification and address proof of each of the authorised signatories.

Note:  In case of foreign nationals, a copy of passport (attested by the customer) is required and the signature on the Customer Information Updation Form should be verified by a foreign notary public/ Consulate General/ Indian Embassy.

  1. Shareholding pattern
  2. Permission to set up office in india
  3. Account opening Cheque from existing Current Account

KYC guidelines for Companies:

  1. Certificate of incorporation.
  2. Memorandum of Association (MoA) and Articles of Association (AoA).
  3. Board Resolution (BR).
  4.  Updated list of directors.
  5. Communication address proof of the entity.
  6. Current landline/ mobile number and e-mail ID of the entity.
  7. Permanent Account Number (PAN) of the entity.
  8. Latest passport-size colour photograph of each of the authorised signatories.
  9. A copy of one valid photo identification and address proof of each of the authorised signatories (View complete list of documents).
  10. Shareholding pattern
  11. Permanent Account Number
  12. Account opening Cheque from existing Current Account

2020-01-25 05:07:08

Here we go again, Financial year has started and following is quick summary of changes or amendments of IFRS came into effect from January 2019 onwards

Here we go again, Financial year has started and following is quick summary of changes or amendments of IFRS came into effect from January 2019 onwards


Here we go again, Financial year has started and following is quick summary of changes or amendments of IFRS came into effect from January 2019 onwards:

If you are a lessee with some operating leases, then you need to start recognizing lease liability and Asset(right to use).

The amendment relates to defined benefit plan changes, such as plan amendment, curtailment and settlement and asset ceiling.

This amendment relates to the classification of certain financial assets, namely those with specific prepayment options.

If any specific borrowing remains outstanding after the related asset is ready, then it becomes a part of general borrowing.

  1. New IFRS 16 Lease becomes effective
  2. Amendment to IAS 19 Employee Benefits
  3. Amendments to IFRS 3 Business Combinations and IFRS 11 Joint Operations - If an entity obtains control of another entity that was joint operation (i.e. joint operation becomes subsidiary), then the parent DOES remeasure previously held interest in the subsidiary.
  4. Amendment to IFRS 9 Financial Instruments
  5. Amendment to IAS 23 Borrowing Costs

2020-01-10 23:16:28

GDPR Data Protection

GDPR Data Protection


GDPR applies to all companies, no matter where they are based, who collect and process personal data on EU residents. Non-EU companies have to appoint a GDPR representative and will be liable for all fines and sanctions. Some of the key requirements of the GDPR are:

 

Consent: Organizations must get consent to collect personal data, with the level of consent varying according to the type of personal data being collected.

Data minimization: Responding to years of gratuitous collection of personal data by apps, with no clear purpose in mind, the GDPR stipulates that organizations can only collect personal data that is clearly related to a well-defined business objective. If an organization gathers personal data for one purpose but then decides it wants to use it for another purposes (such as consumer profiling), that could be considered non-compliance.

Individual rights: Another key feature of the GDPR is the very clear rights that it gives data subjects (i.e., the individuals whose personal data is being collected) to understand why their data is being collected and how it is being processed. They have the right to object, to correct—and they have the right to be erased/forgotten.

2020-01-10 23:11:37

IMPORT EXPORT CODE NUMBER (IEC)

IMPORT EXPORT CODE NUMBER (IEC)


 

  1. It is a unique 10 digit code issued by DGFT to a person.
  2. IEC is mandatory to export any goods out of India or to import any goods into India unless specifically exempt.
  3. Permanent Account Number (PAN) is pre-requisite for grant of an IEC.
  4. Only one IEC can be issued against a single PAN.
  5. An application for IEC is to be made manually to the nearest Regional Authority of DGFT or alternatively, it can be filed online, in Form ANF 2A and shall be accompanied by prescribed documents.
  6. In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction over the district in which the Registered/ Head Office of the STPI unit is located shall issue or amend the IECs.
  7. New Procedure for online IEC application/modification has been introduced vide Trade Notice No 23/2018-19 New Delhi, Dated the 8th August, 2018.
  8. Online application for IEC requires only 2 documents i.e.
    • Address proof the applicant entity; and
    • Cancelled Cheque bearing entity’s pre-printed name or Bank Certificate, to be uploaded

 

2020-01-10 23:08:30

EXPORT CODE NUMBER (IEC)

EXPORT CODE NUMBER (IEC)


 

  1. It is a unique 10 digit code issued by DGFT to a person.
  2. IEC is mandatory to export any goods out of India or to import any goods into India unless specifically exempt.
  3. Permanent Account Number (PAN) is pre-requisite for grant of an IEC.
  4. Only one IEC can be issued against a single PAN.
  5. An application for IEC is to be made manually to the nearest Regional Authority of DGFT or alternatively, it can be filed online, in Form ANF 2A and shall be accompanied by prescribed documents.
  6. In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction over the district in which the Registered/ Head Office of the STPI unit is located shall issue or amend the IECs.
  7. New Procedure for online IEC application/modification has been introduced vide Trade Notice No 23/2018-19 New Delhi, Dated the 8th August, 2018.
  8. Online application for IEC requires only 2 documents i.e.
    • Address proof the applicant entity; and
    • Cancelled Cheque bearing entity’s pre-printed name or Bank Certificate, to be uploaded.

 

2020-01-10 23:07:38

FEM (Establishment in India of a Branch Office or Liaison Office or a Project Office or any other Place of Business) Regulations, 2016

FEM (Establishment in India of a Branch Office or Liaison Office or a Project Office or any other Place of Business) Regulations, 2016


Branch office

  • any establishment described as such by the company. [Schedule 1]

Liaison office

  • place of business to act as channel of communication between Head Office and Indian entities. [Schedule 2]
  • does not undertake any commercial/ trading/ industrial activity, directly or indirectly.

Project office

  • place of business in India to represent interests of a foreign company executing a project in India
  • excludes a liaison office.

Site office

  • sub-office of project office established at the site of project
  • excludes liaision office

Prior approval of RBI required for each of the above.

2020-01-10 23:06:26

Following are the broad procedures from FEMA perspective that needs to be followed for ODI investment in India before FDI receipt of FundsFollowing are the broad procedures from FEMA perspective that needs to be followed for ODI investment in India before FDI receipt of Funds

Following are the broad procedures from FEMA perspective that needs to be followed for ODI investment in India before FDI receipt of Funds


Following are the broad procedures from FEMA perspective that needs to be followed for ODI investment in India before FDI receipt of Funds

Step -1 Online application portal for the entity master form ( the RBI introduced an online portal called the Foreign Investment Reporting and Management System ("FIRMS"), under which every Indian entity, with existing direct or indirect foreign investment, was required to provide certain information to the RBI in the entity master form (the "EMF"), through the website of FIRMS) Basically it is Initial registration for an Entity.

Step -2 KYC of Foreign remitter with Funds

In swift message for Funds, Field 72 must mention---Share capital or Capital Infusion or Purchase of Share capital etc

KYC must contain 6 points

Know Your Customer (KYC) Form in respect of the non-resident investor

  • hashtag#FEMA
  • #www.accorptaxpro.com
  • hashtag#Accorp
  • hashtag#FDI
  • hashtag#FDIinIndia
  • hashtag#FEMA
  • Compliance
  •  

2020-01-10 05:57:07