What is a Trade License in Kerala?

Trade license is a common layman’s term for registering your business under the Shops& Establishment Act, Kerala. The provisions of this act are equally applicable to all organizations undertaking any kind of business / commercial transactions in Kerala. Also, it is worth noting that in case you have multiple offices in the state, spread across multiple districts, then the license must be taken for each office premise

Types of Trade Licenses in Kerala

For the purpose of classifying an Entity, the act proposes three classes of business: Small, Medium & Big. In case the entity employs less than  5 persons, it’s classified as Small, 6-19 people it’s medium and greater than 20 persons it’s a big enterprise.

Validity of  Trade Licenses in Kerala

Once your business gets registered, it has to renew the license every year. Also, any changes to the details furnished at the time of registration must be made and intimated to the authority within 30 Days

Documents Required for Trade License Application in Kerala

To apply for a trade license in Kerala, you’ll need the following documents:

• Identity proof: Aadhaar card, PAN card, passport
• Address proof: Ration card, electricity bill, voter ID
• Property documents: Sale deed, lease agreement, rent agreement
• No Objection Certificate (NOC): If renting the premises, nOC from the original owner
• Other relevant documents: Depending on the nature of your business
• Declaration on no of employees

Step-by-Step Guide to Obtaining a Trade License in Kerala

Securing a trade license in Kerala is a straightforward process:

1. Online Application: Visit the official portal to file your application online 
2. Filling the Application Form: Provide accurate details about your business and owner.
3. Submitting Required Documents: Upload the necessary documents as specified.
4. Payment of Fees: Pay the prescribed application and license fees.
5. License Issuance: Upon verification, the authorities will issue the trade license.

Penalties for Operating Without a Trade License in Kerala

Operating without a valid trade license in Kerala is a serious offence. Penalties can include:

• Fine up to ₹ 5,000.
• Additional ₹ 250 per day post-conviction.
• ₹ 250 per day after notice for breach discontinuation. This may be restricted to Rs 10,000

FAQs

1.How to take a trade license in Kerala? 

Obtaining a registration under Kerala Shops & Establishment Act is an online procedure. Visit the portal to, Fillup the details and submit for processing

2.What is local trade license? 

It is the common name for Reg under Shop and Establishment Act, it is required by all organisations undertaking commercial transactions

3.What are the benefits of having a trade license in Kerala

More than a benefit, it is a legal requirement to get registered

4.How long does it take to get a trade license in Kerala? 

It can be obtained in a week.

5.How do I renew my trade license in Kerala? 

Its similar to the registration process. Contact ClearBiz for more business services. For more help mail us at info@clearbiz.in

Income tax penalty is a word many people dread. The Indian Income Tax Department has the power to impose penalties for various non-compliance and deviations from the provisions of the act. This includes late filing of Income Tax Returns (ITRs),  penalties for incorrect reporting of income, wilful non-compliance, and many more provisions. It is worth noting that many of these offences under the Income Tax Act are criminal offences. This means contravention can result in jail terms for the responsible persons 

There is a Latin saying, ignorantia juris non excusat which translates as “Ignorance of Law is not an excuse” Understanding and adhering to the law of the land is the responsibility of every citizen. However, for many people understanding the complex provisions of law and preparing documents according to it might be difficult. However, contravention is not a solution. The best way out is to engage a trusted professional who will help you through the process

How is the Income Tax Penalty Calculated ?

The income tax penalty is calculated based on different parameters, Here are some of the most common grounds for charging late fees or penalties

• Late filing of ITR: If the return of Income is filed beyond the due date (31st July for Non-Corporate Business and 30th September for Corporate Assesees.A penalty of Rs. 5,000 is levied for individuals with a total income exceeding Rs. 5 lakhs. For those with income below Rs. 5 lakhs, the penalty is Rs. 1,000.
• Delayed payment of advance tax or self-assessment tax: Advance tax has to be remitted by all taxpayers in 4 installments and the entire liability must be discharged before the 31st of March every financial year interest is charged at the rate of 1% per month from the due date of payment to the actual date of payment in case there is a shortfall or non-payment
• Incorrect or false information: These are some serious non-compliance provisions. If the taxpayer wilfully conceals his income or provides false information in ITR.Penalties can range from 50% to 200% of the tax evaded.
• Non-compliance with TDS/TCS provisions: Penalties can be imposed on the deductor/collector if TDS is not remitted to the government within the 7th of the succeeding month. An interest of 1% per month is charged. Also for delay in filing of TDS Returns, per day late fee of RS 100 is payable subject to a maximum of tax payment

Penalty Chart Under Income Tax Act, 1961

Note: This is a simplified chart. Actual penalties may vary based on specific circumstances.

What is the Fine Slab for Late Income Tax?

The fine slab for late income tax depends on the income level and the delay period. As mentioned earlier, individuals with an income exceeding Rs. 5 lakhs face a higher penalty compared to those with lower incomes. Additionally, late payment interest is payable at 1% per month for such delay

Can the Income Tax Penalty Be Reduced?

In certain cases, taxpayers can request a reduction in the income tax penalty. This usually requires providing valid reasons for the delay or error. However, the success of such requests depends on the specific circumstances and the discretion of the tax officer.

How Can Avoid Penalty Tax?

To avoid income tax penalties, follow these tips:

• File ITR on time: Adhering to the due dates is important. July 31st for Individuals (Non-Tax Audit ) and 30th September for Audit cases
• Pay advance tax and self-assessment tax on time: Avoid late payment penalties and interest by strictly following the advance tax installments
• Maintain accurate records: Proper documentation helps prevent errors while filing ITR. This in turn ensures there is no mismatch with data available with the Income Tax Authorities
• Seek professional help: Consult a tax expert for guidance, to minimize the possibility of errors and ensure you stay compliant

The Benefits of Filing ITR on Time

Filing your Income Tax Return on time offers several advantages:

• Avoid penalties: As discussed, late filing attracts penalties and interest
• Claim refunds: If you have paid excess in taxes, you can claim a refund by filing the ITR. Now refunds are processed even within a week and disbursed to the tax payer
• Loan approvals: Many financial institutions require ITR for loan processing. ITR are taken as a record for income proof. Usually bankers request for previous three years of ITR as income proof of the applicant
• Visa applications: Some countries require ITR for visa purposes.

Conclusion

Developing an overall understanding of the existing tax laws is a must if you earn income in India. This is not just if you are doing any business here. Even in case you are a salaried person, knowing the basic provisions of Income Tax is extremely important

FAQs On Income Tax Penalty

• What is the maximum penalty for not filing ITR?

The Maximum penalty for non filing of ITR is Rs 5000 , however if your income is below Rs 500,000 late fee u/s 234F will only be RS 1000

• Can we file ITR for last 3 years?

Well now there is a provision to file ITR-U (Updated Return). This can be done for previous 2 years . However this cannot be used for claiming any refund

• What is the penalty for not filing TDS report?

The penalty is Rs 100 per day, limited to the amount of tax remitted

• How to pay late filing penalty?

Income Tax payment can be made by using the E Pay Tax Facility on the ITD Portal

• What is the normal penalty in income tax?

The Maximum penalty for non filing of ITR is Rs 5000 , however if your income is below Rs 500,000 late fee u/s 234F will only be RS 1000, Likewise for each case of contravention from act penalty provision varies under the act

• What is the maximum exemption for ITR?

All individual whose income falls below basic exemption limit (Rs 250000) are not required to file ITR

• What are the steps to Epay Tax

Step 1: Navigating to ‘e-Pay Tax’ Section

1. Visit the Income Tax Portal
2. On the homepage, locate the ‘Quick Links’ section on the left side.
3. Click on the ‘e-Pay Tax’ option or use the search bar to find ‘e-Pay Tax’.

Step 2: Enter PAN/TAN and Mobile Number

1. Enter your PAN and re-enter to confirm it.
2. Provide your mobile number and click ‘Continue

Step 3: Select the correct Assessment Year and Payment Type

1. Select the first box labelled as ‘Income Tax’ and click ‘Proceed’

Step 4

      1. From the ‘Assessment Year’ dropdown, select ‘2024-25’ for FY 23-24

2. Under the ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and click on ‘Continue’. Enter the payment amounts accurately under the relevant categories.

Step 6: Verify Payment Information

1. After clicking ‘Continue’, you can preview the challan details.
2. Double-check the payment information for accuracy.
3. Click ‘Pay Now’ to make the payment or ‘Edit’ to modify the details.

Step 7: Submit the Payment

1. Tick the checkbox to agree to the Terms and Conditions.
2. Click ‘Submit To Bank’ to proceed with the payment.

Step 8: Receive Payment Confirmation

1. You will receive a confirmation once your tax payment has been successfully submitted.

Note: Remember to download the challan as you will need the BSR code and Challan number to complete the return filing process.

to know more visit clearbiz

Business registration is a very important step for any entrepreneur, but doing all the related processes alone can be exhausting and tiring. Business registration may be a GST Registration for your company, or private limited company formation etc. While the Do It Yourself approach might seem quite appealing at first, it can go wrong terribly if you don’t have adequate expertise and knowledge about the same. 

The challenges of DIY business registration can far outweigh the perceived benefits, from the complexities of legal formalities and possibilities of documentation errors to time-consuming paperwork and financial risks. In a nutshell, if you are not an expert the task might be herculean.

Understanding DIY Business Registration

DIY business registration in simple words means handling all aspects of setting up a business on your own. This may also involve handling all aspects of the company formation process all by yourself. 

Here the owner does his research and studies the regulations and rules connected to his business. He then makes necessary applications to the concerned government authorities. Any liaisoning work is also done by him directly

 Many entrepreneurs choose DIY registration to save on professional fees paid to consultants. Their logic is that they will incur only government fees as cost

Common Pitfalls of DIY Business Registration

Legal Complexities

It might be quite difficult to comprehend all laws concerning a business if you are not an expert in the field. This is because in India there are several laws governing different types of businesses. For instance, a private limited company may be governed by the Companies Act, FEMA, Income Tax Act, RBI Guidelines, GST etc depending on what its operations are. Whereas in some cases it might be just the Income Tax Act that controls a business

Documentation Errors

One of the most common errors seen in DIY registration is incomplete or inaccurate documentation. More often than not applications are filled erroneously leading to rejections. The Business owner will have to do all the paperwork again to set it right. This consumes the valuable time that he should dedicate to the business 

Time Consumption

Researching the laws and understanding them, preparing the documents on your own, submitting them to the right authorities, etc will take up a lot of time. However, the opportunity cost of closing a business deal in this time is much higher

Potential Financial Consequences

Hidden Costs

DIY business registration often results in unexpected expenses. Late fees, penalties for incorrect filings, and the cost of hiring professionals later to rectify mistakes can quickly add up.

Long-term Financial Impact

Short-term cost savings from DIY registration may lead to significant financial burdens in the long run. Legal disputes, tax issues, or operational setbacks caused by registration errors can have a long lasting impact on your business.

Risks to Business Credibility and Operations

Credibility Issues

A professionally registered business conveys a sense of legitimacy and trust. DIY mistakes can harm your business’s reputation and hinder your ability to secure loans, partnerships, or contracts.

Operational Setbacks

Delays in the registration process can disrupt your business launch and hinder your ability to obtain necessary permits and licenses.

Alternatives to DIY Business Registration

Professional Services

Enlisting the help of lawyers, accountants, or business registration firms can provide peace of mind and ensure compliance with all legal requirements. These professionals possess the expertise to navigate the complex registration process efficiently.

Online Registration Services

Platforms like ClearBiz offer convenient and reliable online business registration solutions. With user-friendly interfaces and expert support, these services streamline the process and minimize the risk of errors.

Weighing the Pros and Cons

Carefully consider the potential benefits and drawbacks of DIY business registration before making a decision. A detailed comparison chart can help you visualize the pros and cons of each approach. Additionally, learning from the experiences of other entrepreneurs can provide valuable insights.

Case Studies

Many businesses have faced challenges due to DIY registration mistakes. On the other hand, countless entrepreneurs have successfully launched their ventures with the assistance of professional services or online platforms like ClearBiz.

Conclusion

While the temptation to save money and maintain control may lead you to consider DIY business registration, the potential risks and hidden costs make it a risky proposition. By partnering with experienced professionals or utilizing reputable online platforms like ClearBiz, you can ensure a smooth and compliant start to your business journey.

Don’t gamble with your business’s future. Choose ClearBiz for hassle-free business registration. Our expert team will guide you through the entire process, from incorporation to compliance. Contact us today to get started.

 The Union Budget 2024-25 created a sense of mixed emotions to taxpayers. While some changes helped further lower taxes and increase disposable income, others lead to impacts on tax planning on investments. Let’s understand more about the key changes of the budget

Making the New Tax Regime Sweeter

If you’ve been considering switching to the new tax regime, the government has made it even more attractive by further widening the slab of lower taxes and adding an extra of Rs 25000 to Standard Deduction for salaried class

• Higher Standard Deduction: The standard deduction has been increased from existing ₹50,000 to ₹75,000. This means an additional 25000 of your salary income can go tax-free
• Revised Tax Slabs: The tax slabs have been adjusted to offer lower tax rates for up to an annual income of Rs 700,000. This could lead to lower tax burden for many

While the new regime offers simplicity, it’s crucial to compare it to the old regime to determine which one benefits you more. This is purely personal depending on your income level and deductions you have at hand

Here is a look at the revised TAX SLABS under the new Regime of Taxation

Pensioners Get Some Relief

There’s a bit of good news for Senior Citizens having pension Income

• Increased Family Pension Deduction: The deduction on family pension has been raised from ₹15,000 to ₹25,000. This will provide some additional tax relief for pensioners opting for the new tax regime.

Changes in Capital Gains Tax: A mixed response

The world of investments has seen some major alterations:

• No more Indexation Benefits: If you’ve been enjoying the benefits of indexation to reduce your long-term capital gains tax, there’s a catch. From FY 24-25, the benefit of indexation is being done away with. LTCG is payable at a flat rate of 12.5%. This means capital gains on sale of Equity also attract 12.5% tax rates instead of 10% prevailing earlier

However as relief the earlier exemption in such cases of Rs 100,000 has been now revised as Rs 125000

• Higher Short-Term Capital Gains Tax: Short-term capital gains on equity investments STT Paid will now be taxed at 20% instead of 15%.

These changes might influence your investment strategies. Consulting with a financial advisor could help you navigate these changes effectively.

TDS on Partners Remuneration

From FY 24-25 onwards the following changes will apply on salaries paid to partners of a firm

• TDS on Payments to Partners: Firms will now have to deduct TDS of 10% on salary to their partners if it exceeds 20 ,000 per annum

This might have implications on cash flow aspects of several firms

Other Key Changes

• Removal of Angel Tax: Startups and investors can breathe a sigh of relief as the controversial angel tax has been abolished.
• Higher Deduction for Employer Contributions under NPS: Companies can now claim a higher deduction of 14%  on their contributions to employees’ NPS instead of earlier 10%.

Making the Most of These Changes

While the budget offers some relief, it’s essential to understand how these changes impact your specific financial situation. Here are some tips:

• Do the comparison: Calculate your tax liability under both the old and new tax regimes to choose the most beneficial Regime
• Review Your Investments: The changes in capital gains tax might call for a review of your investment portfolio.Moreover be aware of tax implication on sale of assets
• Consult an Expert: If you’re unsure about how these changes might affect you, seeking professional advice is always a good idea.

Remember, tax laws can be complex, and it’s possible that you might miss important details. By staying informed and seeking expert guidance, you can make the most of these changes and optimize your tax planning. For more help drop in a mail at info@clearbiz.in or visit ClearBiz

 Starting a business in India is quite an exciting prospect! But getting through all of the regulations and processes can be tough. Below is an informative guide to help you set up your business in India.

Choosing the Right Business Structure

Picking the right legal setup is very important. India has so many options; all have their own positives and negatives.

• Sole Proprietorship: This is a good one for a smaller business idea. It’s easy to start & manage, but keep in mind, you’re fully responsible for any debts.
• Partnership: If you would like to go into business with somebody else, this works well. You can choose a general partnership or a limited one.
• Private Limited Company: This option will allow you to have the benefit of limited liability. It is a separately legal entity and very much preferred by most startups and small businesses.
• Public Limited Company: If you really do have big dreams and are willing to raise money from the public, then this is the entity you should go with.
• Limited Liability Partnership (LLP): This mixes up the flexibility of partnership and some protection like that of a company. Interesting choice!

Business Registration and Licenses

After picking your business type, get it registered & grab the licenses you need.

1. Mandatory Registrations:
   1. Shop and Establishment Act: This encompasses local regulations with regard to running your business.
   2. GST Registration: A must if you are providing goods or services.
   3. Professional Tax: Many states require this for workers in different jobs or businesses.
   4. Depending on what you’re doing, there might be other licenses, too—like import-export or food licenses.
2. Getting Licenses: Depending on what type of business you have, you will require different types of licenses. For instance, if you start a factory, you require a trade license. If it’s a restaurant? Yes, the food license!

Location and Infrastructure

Where your business is based can really change how well it does. Think about your target market, where resources are available, infrastructure, & cost of living.

• Choosing the Right Location: Invest some thought into seeing which location will best work out with your business setup in India.
• Office Space Lease: Decide on leasing or buying an office, using how much money you have and your long-term objectives as a guide. Be sure it fits what you need for work and helps everyone be productive.

Legal and Regulatory Compliance

Sticking to India’s rules is key for success.

• Company Law Compliance:
  1. Following the standards of corporate governance.
  2. File annual returns & financial statements regularly.
  3. Hold board meetings & general meetings often.
• Labour Laws:
  1. Keeping abreast with the regulations with regard to pay, working hours, and employee benefits.
  2. Remember to handle any disputes properly!
• Tax Laws:
  1. Be aware of your income tax, GST, and other taxes that you may be liable for.
  2. Do not forget to file returns on time!
• Environmental Laws:
  1. Get your environmental clearances in order if the nature of work impacts that.
  2. Don’t forget about pollution standards, compliance with it is absolutely essential.

Financial Planning and Funding

The key to building a successful business setup in India would be having a sound financial plan.

• Business Plan Development: Write down a formal business plan stating your goals, strategies, financial projections & marketing concepts.
• Financing: Learn other ways of how to source capital—self-financing, bank loans, angel investors, venture capitalists, & government help!

Human Resources

You need the right people to make things happen for your company.

• Recruitment: Pin down the job roles so that you are able to recruit outstanding employees. Then interview them in a way that really helps talent shine!
• Employee Onboarding: New hires deserve a warm welcome. Training should empower them to fit right in!
• Payroll and Benefits: Compensation packages should be competitive—think salaries, bonuses & all those important benefits too!

Marketing and Sales

Good marketing & sales strategies are key for growth.

• Developing a Marketing Strategy: Know your target market! Establish a strong brand identity and determine the right ways to touch your target audience.
• Build a strong sales team: Use smart sales tactics and target relationships with your customers.

Setting up a business in India requires detailed planning and hard work. Not easy, with all the number of steps, but totally worth it if done right. ClearBiz can help—you’ve got a great business idea for India and they’ll ensure everything is hassle-free!

A CIN is a unique identification number assigned to every company registered under the Companies Act, 2013. Similar to the CIN for Companies , LLP are assigned an LLPIN ( Limited Liability Partnership Identification Number) It’s a combination of letters and numbers that helps identify a corporate entity registered in India. Just like a PAN card is issued by the Income Tax Department, a CIN is allotted by the Ministry of Corporate Affairs

Think of it as your company’s passport, essential for conducting business and interacting with government agencies.

Why is a CIN Essential for Your Business?

CIN is a legal requirement. Rather than offering any benefit, it is a mandatory statutory compliance. All Companies registered in India are allotted a CIN and it is mandatory for them to display the same.

Who Needs a CIN?

Any company incorporated under the Companies Act, 2013 requires a CIN. This includes:

• Private Limited Companies
• Public Limited Companies
• One Person Companies (OPCs)
• Limited Liability Partnerships (LLPs)

Types of Private Limited Companies

On the  basis of formation, private limited companies can be classified as below

• Company Limited by Shares: This is the most widely adapted form of Private limited company.Here the share capital is clearly stated in the memorandum of association. The members liability is limited to the value of unpaid amount of the called share capital if any
• Company Limited by Guarantee: Here the members stand guarantee to the liability of the company and their liability to third parties is limited to such amount of guarantee
• Unlimited Companies: Here the members of the companies have unlimited liability towards third party claims , this means in case of losses or liabilities over and above companies resources , the members will have to personally settle the same.

Breaking Down the Corporate Identification Number

Now let us understand what CIN number signifies

A CIN is a 21-character code divided into six sections:

• Section-1: The first character – L: Indicates the company type (L Listed Company U for Unlisted Company)
• Section-2: The next five digits – 01631: Represents the registration year
• Section-3: The next two letters – KA: Indicates the state of incorporation (KA for Karnataka, KL for Kerala Like wise)
• Section-4: The next four digits – 2010: Unique number assigned to the company
• Section-5: The next three characters – PTC: Indicates the company type (PTC for Private Limited Company)
• Section-6: The last six digits – 096843: Unique serial number

Process for Getting the Company Registration Number

Obtaining a CIN is typically a part of the company incorporation process. 

Here’s a brief overview of the process of incorporation of a company in India

Step 1: Obtaining Digital Signature Certificates (DSCs)

As per the provisions of the Companies Act and applicable rules, every person acting as a director of a company must hold a valid DSC. Moreover, all Forms are processed online now, and digital signature is a mandatory requirement for signing

Step 2: Applying for Director Identification Number (DIN)

Obtaining a DIN is a prerequisite for joining a company as a director

Step 3: Securing a Unique and Compliant OPC Name

Choose the right identity for your business by ensuring your OPC name is unique and compliant with the prevailing rules. Ensure it does not cause any Trademark objection

Step 4:Keep ready  Essential Documents for Registration

Collect necessary documents such as:

• Director’s Identity and Address Proof
• Proof of Registered Office Address
• Prepare Memorandum of Association (MoA) and Articles of Association (AoA)

Step 5: Submitting the completed Incorporation Forms with the Ministry of Corporate Affairs (MCA)

Step 6: Acquiring the Certificate of Incorporation From MCA/ ROC 

Penalty for Non-Compliance of Mentioning CIN

Failing to mention the CIN in the required documents can lead to penalties. It is Rs 1000 per day of default, restricted to a maximum of Rs 100,000/-

FAQs

1. How to get a corporate identification number?

CIN is allotted by the MCA at the time of incorporation of the Company . it would be clearly stated in the Certificate of Incorporation

2.How to find a corporate identification number? 

The CIN is typically mentioned in the company’s incorporation certificate 

3. How long does it take to get a CIN in India?

 The process is part of the Incorporation of a Company. Forming a Private Limited Company takes 2-4 weeks, but it can vary depending on various factors.

5. Can I apply for a CIN without incorporating the company? 

No, a CIN is assigned only after a company is incorporated.

6. Where do I need to mention the CIN?

The CIN should be mentioned in all official documents, tax returns, and business communications.

7. What documents are required for CIN? 

There are no separate set of documents for CIN The required documents are those required for registering a Company

Identity and Address Proof of Directors:

1. Aadhar Card/PAN Card
2. Passport (for foreign nationals)
3. Driving License/Voter ID Card
4. Latest Utility Bills (Electricity/Water Bill)
5. Latest Bank Statements
6. Email Address and Mobile Number

Address Proof of Registered Office:

1. Latest Utility Bill of the Registered Office
2. Rent Agreement with NOC (No Objection Certificate) from the landlord

8. What happens if I don’t mention the CIN in required documents? 

You may face penalties and legal issues for non-compliance.Rs 1000 per day of default restricted to Rs 100,000

Micro, Small and Medium Enterprises (MSMEs) are a very important constituent of the Indian economy. They contribute significantly to the employment generation and economic development of the country. Moreover its also important to note that they contribute to almost 30% to the GDP of India.

  The Indian government introduced Udyam Registration, an easy and paperless process to recognise these businesses. Udhyam Ragistration helps entities to register themselves as MSMEs. A certificate of registration is obtained, containing a unique MSME registration ID

This blog post will help your business understand the purpose and process of Udyam registration (also referred to as Udyog Aadhaar registration earlier).

What is Udyam Registration and How Does it Differ from Udyog Aadhaar?

Udyam Registration is a self-declaration-based online registration process for MSMEs. It replaces the previous Udyog Aadhaar registration. Unlike Udyog Aadhaar, which requires documentation, Udhyam Ragistration simplifies the process by leveraging Aadhaar for verification. Very basic details of the Entity like, PAN details, Reg /Office Address, Nature of activities, No of Employees are required to be furnished on the Form. According to the parameters, your entity will receive a recognition certificate classifying you as “Micro, Small medium 

MSME Classification for Udyam Registration in India

The Indian government categorizes businesses into Micro, Small and Medium Enterprises (MSMEs) based on their investment in plant and machinery/equipment and annual turnover. This classification determines identifies business for Udyam Registration, which provides various benefits for MSMEs.

Let’s have a look at the MSME classification:

• Micro Enterprise:
  1. Investment: Up to Rs. 1 crore
  2. Turnover: Up to Rs. 5 crore
• Small Enterprise:
  1. Investment: Up to Rs. 10 crore
  2. Turnover: Up to Rs. 50 crore
• Medium Enterprise:
  1. Investment: Up to Rs. 50 crore
  2. Turnover: Up to Rs. 250 crore

Who can register as MSME?

Any business entity, including:

• Proprietorships
• Partnership firms
• Companies (Private & Public Limited)
• Limited Liability Partnerships (LLPs)
• Self Help Groups (SHGs)
• Co-operative societies
• Trusts

Why is Udyam Registration Crucial for Your MSME?

Udyam Registration offers many benefits for your MSME:

• Ease of Doing Business: Registration streamlines procedures and reduces compliance burden. On many government forms like Trade Mark Application, MSME Reg helps to have a reduction in the application fee amount
• Access to Government Schemes: Udyam registration gives access to various government schemes and subsidies.
• Financial Incentives: Registered MSMEs are eligible for loan schemes at concessional rates and priority sector lending. There is a significant difference in the rate of interest for an MSME and others
• Enhanced Credibility: A Udyam registration certificate acts as a credible document for your business.

Stepping into Udyam Registration: A Step-by-Step Guide

Udyam registration is a straightforward process. Here’s a breakdown:

Understanding Eligibility and Requirements:

• There are no complex document requirements.
• A valid Aadhaar number for the proprietor, managing partner, or authorized signatory is mandatory.
• PAN and GST details (if applicable) are automatically fetched for verification.

Step 1: Initiating the Registration Process

• Visit the official Udyam Registration portal 
• Select the registration option based on your business type (proprietorship, partnership, etc.).

Step 2: Completing the Udyam Registration Form

• Fill out the form with details like business name, nature of activity, and investment in plant & machinery, correctly
• Select the National Industrial Classification (NIC) code corresponding to your line of business activity.

Step 3: Submitting Your Application

• Carefully review the information entered before final submission.
• Upon successful submission, you’ll receive a Udhyam Ragistration Number (URN) and an e-certificate.

Avoiding Common Mistakes During Udyam Registration

• Incorrect NIC Code Selection: Choosing the wrong NIC code can lead to incorrect classification of business categories. This might in turn make your business ineligible to certain privileges
• Inaccurate Information: Ensure all details entered in the form are accurate and up-to-date.

Benefits of Udyam Registration for Your MSME

Udyam registration helps your MSME have access to various government schemes and business loans. It acts as a legal recognition for businesses that do not need registration under other categories It fosters growth, simplifies compliances, and unlocks access to valuable government schemes.

Keeping Your Udyam Registration Information Updated

Always ensure to update your Udhyam ragistration details if your business undergoes any changes like address or activity expansion, change in number of employees etc

Conclusion

Udyam Registration is a significant recognition for MSMEs in India. By registering, your business will have access to various benefits and government schemes and contribute to the overall smooth conduct of business. 

Feel free to Contact Clearbiz for Assistance:

Clearbiz offers expert guidance and support throughout the Udyam registration process. Our team can help you navigate the procedures and ensure a smooth registration experience. Drop a mail at info@clearbiz.in

FAQs on Udyam Registration:

• How long is the Udyam Registration certificate valid? 

At present its indefinitely valid , unless the entity is no longer can be classified as an MSME

• How do I know if my Udyam Registration is successful? 

You will be able to view and Download REG NO and certificate

• How to get Udyam registration certificate from Udyog Aadhar?

You can proceed by following the link for persons already reg under Udhyam Adhar to migrate

• How to update Udyog Aadhaar? 

The Udyam Registration portal provides details for making amendment to the original details furnished while taking the registration

For any assistance reach out to us at info@clearbiz.in or visit Clearbiz

 Picking a special and catchy name for your brand is super important for your business to do. A good name helps set your products or services apart from others and builds a strong brand identity in people’s minds. But, before pouring money into branding & marketing, it’s important to do a thorough trademark search. This step confirms that no one else in India has already trademarked the name you picked. This way, you can dodge legal troubles later on.

Understanding Trademarks and Why They Matter

A trademark can be a symbol, word, or words that are legally registered or established by usage to represent a company or product. It’s a precious asset giving its owner exclusive rights to use it in business. This exclusiveness is key for shielding the brand identity and stopping others from using a similar mark, which might confuse buyers.

Trademark infringement can cause pricey legal fights, harm to reputation, and rebranding costs. So, doing a trademark search isn’t just a formality but a key move to secure your brand’s future.

How to Carry Out a Trademark Search in India

Doing a trademark search in India involves several steps. You can easily follow these steps on the official website of the trademark registration authority. Here’s how:

Step 1: Log in to the Official Website

Go to the official trademark registration website in India: [IP India Online](https://ipindiaonline.gov.in). This portal handles all searches & filings related to trademarks.

Step 2: Use the Trademark Search Tool

On the homepage, click on the “Trademarks” tab and select “Public Search.” This will bring you to the trademark search tool.

Step 3: Pick Your Search Criteria

There are three main ways to search:

– Wordmark: Look for trademarks based on the name or word. Enter the wordmark, class, and goods/services description.

– Vienna Code: For trademarks with figurative details. Enter the Vienna code and class.

– Phonetic: Find trademarks that sound alike. Enter the phonetic rep, class, & goods/services description.

Step 4: Enter Your Search Info

Based on your chosen criteria, put in the relevant details in the keyword fields. Be as specific as you can to narrow down search results.

Step 5: Conduct the Search

After filling everything out, hit “Search.” The results panel will show trademarks that are registered, objected, or abandoned. This helps you figure out if your trademark is likely to be viable.

Making Sense of Search Results

The results provide a list of trademarks matching your criteria with details like application number, class, status & owner name.

– Registered: If registered, it’s already used and protected by law.

– Objected: Means there were objections during registration. You might still be able to use it but check further.

– Abandoned: Means it was dropped or not followed up on. These might be available but do careful checking first.

Talking To A Trademark Expert Like ClearBiz

While IP India Online’s tool is great, doing a full-scale search often needs more know-how. Trademark laws are tricky & unseen issues might arise making it tough to go solo. Consulting experts like ClearBiz can make all the difference here.

Conclusion

A detailed trademark search is vital for building a strong brand. It avoids legal woes and ensures your chosen name is unique & memorable. By following these steps and consulting with pros like ClearBiz, you can secure your brand identity firmly setting up your business for success.

Don’t take risks with your brand identity! Reach out to ClearBiz today for expert advice ensuring your trademark search hits all marks effectively. With our help, you can pick a distinct and protected brand name confidently for your business paving the way for future success.

The Goods and Services Tax (GST) changed the Indian business world big time in 2017. It replaced a complicated indirect state and central tax system with one streamlined system, making things easier & clearer. But how does GST help startups in 2024? Let’s dive in to find out the main perks you can get with Clearbiz’s help.

Problems Startups Face with Taxes

 New businesses always struggle with tricky tax rules. Before GST was introduced, startups dealt with taxes piling up at different steps of making and selling a product/service. This was tough since it made their tax expenses greater and gave them more paperwork to deal with. Thankfully, GST eased this mess, giving startups a chance to benefit from the benefit of Input Tax Credits and an easier taxation system.

Benefits of GST for Startups in 2024

GST Registration Threshold

 Not all startups need to sign up for GST right away. The current limits give them some time before the designated turnover is reached:

• ₹40 lakhs for businesses selling goods (₹20 lakhs in some special states).
• ₹20 lakhs for businesses offering services (₹10 lakhs in some special states).

 This lets young businesses keep their focus on core stuff instead of worrying over complicated GST rules right from the start.

GST Composition Scheme: A Simplified Option for Startups

The GST Composition Scheme offers a sigh of relief for small businesses and startups in India. Designed for taxpayers with a turnover below ₹1.5 crore (₹75 lakh for North-Eastern states and Himachal Pradesh), it simplifies GST compliance and reduces the tax burden.

Benefits of the Composition Scheme:

Simplified Compliance: The scheme requires filing just one annual return (GSTR-4) instead of multiple monthly or quarterly returns. This frees up valuable time and resources for you to focus on growing your business.

Lower Tax Rates : Enjoy a flat tax rate based on your turnover, significantly reducing your overall tax liability compared to the regular GST scheme.

Input Tax Credit (ITC)

 One of the best things about GST for startups is claiming Input Tax Credit (ITC) on what you buy for your business. This cuts down the tax expenses on your final products or services. For example, if you spend ₹100 on raw materials (with ₹18 being GST), you can claim this ₹18 ITC and lessen your tax bill, freeing up more cash flow.

Simplified Tax Compliance

 Gone are the days of juggling many tax offices under the old system. Now, thanks to GST’s central online filing system, compliance is way easier. Register for GST, file returns, and pay taxes all online from one place – saving both time & money.

Smooth Movement Between States

 Before GST, moving goods between states meant dealing with many permits and check posts – causing delays and extra costs. But now? GST clears these roadblocks, letting goods move smoothly across India. This is huge for startups wanting to expand & reach customers nationwide.

Transparency and Certainty

GST brings clarity to the tax game. Predictable tax rates using a single HSN code for your product or service make financial planning easier – super important for startups eyeing growth and funding.

 Special Tips for E-commerce Startups

 E-commerce companies have special GST points to think about:

• Place of Supply Rules: These rules decide where a sale happens for tax reasons. It’s key for e-commerce startups to know these so they charge the right GST.
• Tax Collection at Source (TCS): E-commerce platforms might need to collect TCS when a sale happens. Clearbiz can help you follow these rules smoothly.

Recent Updates in GST Rules (as of June 2024)

GST rules change now & then. Keeping up-to-date makes sure you don’t face fines. Clearbiz can keep you posted on new changes that could impact your startup like HSN codes updates or new filing steps.

Conclusion

 GST has loads of perks for startups in 2024 – from easy compliance and better cash flow to fair competition & more transparency. Clearbiz is here to guide you through GST registration, return filings, and other business needs so everything runs smoothly without any hiccups from taxes holding you back.

 Want to tap into the power of GST for your business? Get in touch with Clearbiz today! We’ll steer you through every step so you’re always ticking all the boxes right.

 Breaking Down the 53rd GST Council Recommendations for Businesses

 The 53rd meeting of the Goods and Services Tax (GST) Council, which took place on June 22nd, 2024, has delivered some important updates businesses need to be aware of. These changes focus on making compliance easier, adjusting tax rates, and supporting specific sectors. For finance folks like us, keeping up with these modifications is key to navigating the world of GST successfully. Let’s dive into what this means for businesses:

Relief Measures to Note:

Lower TCS Rate for E-commerce: Companies that sell goods through online platforms will now see a drop in the Tax Collected at Source (TCS) rate from 1% to 0.5%. This move lightens the load on suppliers and could help boost cash flow.

Exemptions for Certain Goods: Milk cans (made of steel, iron, and aluminium), solar cookers, and corrugated/non-corrugated paper cartons will now have a standard GST rate of 12%. This makes life simpler for businesses involved in these products.

Administrative Updates:

Deadline Set for Anti-Profiteering Cases: Starting April 1st, 2025, new applications related to anti-profiteering cases will not be accepted. This indicates a potential phase-out of this system, providing some clarity to businesses under investigation.

 Time Limit for Appeals: Businesses now have three months (starting from a date set by the government) to lodge appeals with the GST Appellate Tribunal. This speeds up the process of resolving disputes.

Sector-Specific Matters:

ENA Excluded from GST: Extra-Neutral Alcohol (ENA) used in making alcoholic drinks will be outside the realm of GST. This gives a clear picture for those in the alcohol industry.

 Possible Impact on IGST Refunds due to Export Duty: If export duty applies to exported goods, there might be limits on claiming Input Goods and Services Tax (IGST) refunds. Export-involved businesses should keep an eye out for further updates here.

What Does This Mean for Your Business?

1. Update Your Accounts: Adjust your accounting setups to benefit from the lower TCS rate on e-commerce dealings.
2. Check Inventory: If you handle milk cans, solar cookers, or paper cartons, make sure your pricing includes the new 12% GST rate.
3. Scope out Anti-Profiteering: Keep tabs on ongoing investigations to ensure they get resolved promptly.
4. Prep for Appeal Deadlines: Get ready to file appeals with the GST Appellate Tribunal within the specified timeframe.
5. Get Clarity on Exports: Consult with tax pros if your business does exports that may be subject to export duty affecting IGST refunds.

In Wrap-Up:

The 53rd GST Council changes bring a mix of relief steps, admin tweaks, and sector-specific details. By grasping these updates fully, companies can refine their compliance routines, cut costs potentially and stay up-to-date with shifting rules. Remember – seeking guidance from tax experts is advisable to keep your business above board with GST regulations and make the most of available perks.

 If you need professional assistance or more details about these updates, feel free to contact us at info@clearbiz.in or visit our website