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Thread: Things you hate about Robot shops/Robot Companies

  1. #11
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    @kris51,

    Thanks. Great post!
    Avinash Gupta
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    www.eXtremeElectronics.co.in

  2. #12
    Administrator T-1000 vikas's Avatar
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    @kris51 - really great first post !!!

    So LLP is recommended over simple partnership firm ?
    Vikas Patial

  3. #13

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    Quote Originally Posted by vikas View Post
    @kris51 - really great first post !!!

    So LLP is recommended over simple partnership firm ?
    Yes . Partnership firm and its rules are crap you must audit every record (CAs will charge for this) and you should conduct board meetings at least twice every year and minutes should be submitted. LLPs (LLCs in case of USA) are very good in terms of flexibility and you and your partners can dissolve company with a simple letter. LLP is good for startups and legally it is safe when compared to other firms. I recommend LLP over LTD or Partnership firm (both of them need your physical presence,more money and a CA )

    Regards
    Krishna

  4. #14
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    Nice write-up Krishna... But there are somethings I'd like to correct.

    All limited and private limited firms have to be audited whatever the turnover.
    All LLP, partnership and proprietorship firms above Rs. 40L (this FY onwards Rs 60L) have to be audited by a CA. If the turnover is below this figure, you needn't get them audited... account books maintained by you are good enough.
    Additionally, if you are buying/selling/manufacturing/assembling you'd also need a Tax Identification number (TIN) from the sales tax authority in your state, regardless of whether the firm is LLP, Pvt. Ltd., proprietorship, etc.
    You don't need board meetings in partnership firms.

    About the hassles involved:
    In all these types of firms you have to deal with the sales tax authorities. They are an awful lot to handle with and its best left to advocates/tax consultants, who are really no better than agents. They'll take money, do the stuff and spare you the headache.
    In my understanding and experience, proprietorship firm are the simplest and cheapest if you are a single owner. However, if there are two or more of you, then as Krishna writes, LLP is a good option. However, in all these you have to be physically present at the sales tax authorities once or twice at registration time (for biometric IDs, signatures and what not). LLPs also entails you to have digital signatures and partner identification numbers, another added cost although not too much. I think you should be able to get a proprietorship firm in under Rs. 5K and an LLP in under Rs. 10K assuming 3-4 partners.

    So, in increasing order of cost and difficulty:
    Proprietorship < Partnership < LLP << Pvt. Ltd. <<<<< Ltd.

    HTH,
    Mohit.
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    Mohit Mahajan,
    www.BioZen.co.in

  5. #15
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    And to get a VAT number you need to give a bank surerity of Rs. 50,000 minumum or guarantee of two registered dealers (i.e. those who already have VAT number)
    Avinash Gupta
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  6. #16
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    Another thing to consider is that in case you are a private limited company; bankers and investors will be more comfortable putting their money in your company; since its an audited company. Audits, ostensibly, ensure that the accounts are not fudged and accounting rules are followed. And since opening and running a private limited company is so regulated and structured, it gives an impression that the shareholders are serious about it. After all, if a firm can be opened and closed at will, it doesn't inspire much confidence in the investors.
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    Mohit Mahajan,
    www.BioZen.co.in

  7. #17
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    Quote Originally Posted by avinash_g View Post
    And to get a VAT number you need to give a bank surerity of Rs. 50,000 minumum or guarantee of two registered dealers (i.e. those who already have VAT number)
    Yup... Who said doing business is easy in India? This is probably why Robotics India has not yet begun shipping stuff.

    ;-)
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    Mohit Mahajan,
    www.BioZen.co.in

  8. #18

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    However, in all these you have to be physically present at the sales tax authorities once or twice at registration time (for biometric IDs, signatures and what not)
    Physical presence is not at all required I have already registered an LLP . Both of us sent our driving licence and PAN Card photocopies.
    We registered LLP with 1L-5L Contribution . we got 2 DPINs, 2 DSCs on 2USB Tokens , Tax Deduction Account Number (TAN),PAN for 8500/- they asked us to send photo copies of address proof and PAN and a small form with 6 different names. 5 days later they called us and said the name that is confirmed (in our case first one in form as it is available).Finally I received all my certificates along with USB tokens,TAN and PAN . They never asked us to attend physically.

    From bankers view (Creditworthiness)
    Company > LLP > Partnership firm.
    I managed to get 4L from Syndicate bank startup program (with some influence).
    Also when I spoke to Ingram Micro (distributor) before registering company they asked me LLP or LTD registration cert. after all that we went with LLP.

    Also I registered IEC (Importer Exporter Code) for 20 categories that cost me around 5200Rs. (200 per cat. and 1200 agent fee).I submitted my LLP registration tot get this.

    As MothitM suggested if you are two or more you may choose LLP .

    Regards.

  9. #19
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    Quote Originally Posted by kris51 View Post
    Physical presence is not at all required I have already registered an LLP .
    I wasn't talking about LLP but getting the TIN registration at sales tax authorities. You have to be there physically. That's a fact.
    --
    Mohit Mahajan,
    www.BioZen.co.in

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