All businesses in India are required to register under The Shops and Establishment Act with their respective authorities depending on the place of business. Shops and Establishment Act is enacted to regulate the conditions of work and employment such as working hours, holidays, leave, opening and closing hours, rest interval of employees, and payment of wages in shops, … [Read more...] about How to get registration under Shops and Establishment Act
Finance
How to calculate working capital
Balance sheet of a business or company consists of assets, liabilities and stockholder’s equity. Working capital for a particular period represents the difference between current assets and current liabilities for that particular period. Working capital will determine the capacity of a business to pay off its current liabilities with current asset or cash and assets available … [Read more...] about How to calculate working capital
What is Cash Credit, how it differs from Overdraft facility
Bank provides different kind of working capital loans to large corporate and SMEs which includes Traders, Manufacturers, Service Enterprises, Retailers, Stockist, Distributors, Merchant Establishments, Departmental Stores, Supermarkets, Restaurants and Multi Brand Outlets etc to finance their day-to-day requirements. Cash Credit or CC is part of bank’s working capital loan … [Read more...] about What is Cash Credit, how it differs from Overdraft facility
What is Tax haven, List of countries considered as tax heaven
Tax Haven can be a state or country or territory where taxes are levied at a very low rate or not at all. It’s described as “sunny places for shady people”. It also refers to places where the country or state has a system of financial secrecy laws or bank secrecy laws or offer favorable tax regimes for foreign investors. Financial secrecy or Bank Secrecy means these … [Read more...] about What is Tax haven, List of countries considered as tax heaven
Who can set up One Person Company or OPC in India
One person company or OPC is not a new concept. It’s widely used all over the world including in countries like Pakistan, china, Singapore and US. In India OPC concept has been introduced with the new Companies act 2013. Section 2(62) of Companies Act 2013, has defined one person company. As per this section, One Person Company means a company which has only one person as a … [Read more...] about Who can set up One Person Company or OPC in India
Dividend income Vs capital gain – Meaning and Difference
There are two ways to make money on stock investments: capital gains and dividends. Dividend can be distributed in the form of cash or stock. Both type of payments are distributed our of companies profit by reducing retained earning. Dividends can provide steady periodic income, while capital gain requires action to convert share to cash. When an investor sells share of a … [Read more...] about Dividend income Vs capital gain – Meaning and Difference
5 reasons why you should incorporate a company
Incorporating a company refers to the process of making a private limited or public limited or OPC, which will be a separate entity from the owner. Here are 5 reason why incorporating a company is beneficial; Personal Asset Protection or Limited Liability In case of proprietorship and partnership form of business, the owner may be liable for the entire debts and … [Read more...] about 5 reasons why you should incorporate a company
Compound interest calculation and The rule of 72
In simple term compound interest is interest on interest. This means, compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. For example, if you deposit Rs 100 into your saving bank account @ 10% compound interest rate per year, in the first year you get Rs 10 as interest. In the … [Read more...] about Compound interest calculation and The rule of 72
Advantages and Disadvantages of sole proprietorship
While considering the legal structure of your new business, in India you are basically have five form of business ownership to choose, a company, a partnership firm, a LLP, a OPC or a sole proprietorship. The only business that doesn’t need to be registered in India is sole proprietorships that owned and operated by one individual. In India, it’s one of the most popular and … [Read more...] about Advantages and Disadvantages of sole proprietorship
Difference between a private and public limited company
In India, Private Limited Companies are generally owned by family members or a small group of persons and not open to public for ownership. The general accepted rule is that any company which is not a public company is known as a private company. The directors and shareholders in a private limited company are frequently the same persons, which is not a case in public limited … [Read more...] about Difference between a private and public limited company