2 real estate company formation

Real Estate Company Formation &

Business Setup

Trainings by Vidya Bhagwat

Agenda

Type of Companies & Legal Formalities.

Documents for Setup.

Understand Nitty-Gritty.

Company formation Workshop


Type of company

Proprietary Firm/Business (Sole owner of Business)

Partnership Firm (Two or more owner of business)

Private Company


Proprietary Firm/Business

Single owner of the Business.

Raises the fund with his own recourses.(Bank loan, Financialinstitute, & etc)

Enjoys Full Profit amt & Bears all the losses.

Responsible for whole & sole business affairs.

He take all the decisions on behalf of Business.

Owners Private property can be soled out for the settlement of theliability of business.


Partnership firms

Starts the business with Two or more partner with mutualunderstanding.

Partnership deed is important for easy business activity.

Profit sharing will be shared as per the partnershipdeed of the firm & also the loss of the firm too.

The liability of the firm is unlimited.

All the decision making rights are reserved up to the partners of thefirm.

Personal property can be used for settlement of the liability of thebusiness.


Private Company Private company can start up with

minimum 2 & maximum 50 members

Company collects their capital byissuing private shares of the company.

Profit is Shared by company with accordancewith % fixed by the company.

Liability also limited up to their share value & can extend tosettled the loss.

All have equal rights to take the decision of the company.


Things To Do While Starting The Business

While starting the business get in touch with CA & CS.

In touch with Some of people who are having goodknowledge of law & etc which are needed while companyformation.(Lawyer, legal advisor & etc )

Identify the company name.

Identify the Nature & areas of business.

Official/ Legal Address of the company.


Documents For set up of Business


Understand Nitty-Gritty (Various Laws) Services tax.

Service Tax was first brought into force with effect from 1 July 1994. All serviceproviders in India, except those in the state of Jammu and Kashmir, arerequired to pay a Service Tax in India.

Service tax is a tax levied by the government onservice providers on certain servicetransactions, but is actually borne by the customers.

A service tax is basically a revenue tax.

Taxes are supposed to be collected for the improvement of public utilityservices.

Service tax is 12.36%


Income Tax

Income tax is a key source of funds that thegovernment uses to fund its activities and serve thepublic.

Under the Income Tax Act, Profits and Gains of Business or Professionare also subjected to taxation.

Corporate Income Tax Rate = 30 %Surcharge @ 5% (If gross turnover of company exceeds Rs. 1 Crore)Education Cess @ 3%


……cntd

Taxations under the following cases:-• Profits and gains of any business or profession.• Any compensation or other payments due to or received by

any person specified in section 28 of the Act.• Income derived by a trade, profession or similar association

from specific services performed for its members.• Profit on sale of import entitlement licenses, incentives by

way of cash compensatory support and drawback of duty.


Important Laws & Guidelines.

The laws and regulations that your businessmust follow depend very much on whatstate you live, the legal form of yourbusiness and the nature of your product or service.

Look after the Business Registration & Licensing Regulationsacts.

Look after the consumer protection act.(what it is actually &Important in our business)

Look after the Labor law & etc, also the environment regulationby government.


Workshop

Create Name of the company.

Look for the website (Domain name).

Creation of Email ID (Professional id).

Creation of Logo.

Define area of business & Business activity.
