Doing Business in India: The New Companies Act 2013
Sannam S4 Webinar Series 2014June 17, 2014
www.sannams4.com @Sannam_S4 Sannam S4
2
The story so far…
Why Companies Act 2013
Could See More Changes
May 31, 2014
…While no one doubts the intention of the
law, its implementation remains the
priority job of the new government…
CII recommends re-polishing of Co. Act 2013 and Co. Rules 2014June 5, 2014…Due to the hurried pace in which these act and rules were implemented, the industry barely got an opportunity to completely understand the provisions and their impacts…
MCA notifies 183 sections of Companies Act 2013March 26, 2014…Companies Act 2013 comes into effect from next week…
Areas of concern in the Companies Act 2013
Feb 16, 2014
…The ICAI has certain concerns and issues in the Companies Act, 2013 and draft rules…
'Companies Act 2013 to boost
transparency‘
Nov 29, 2013
…The new Act seeks to increase
transparency, provide representation for
women in boards and makes CSR
mandatory…
New era for Corporate Law in India?
3
Political requirements
Initiatives of the previous Government (Congress led UPA)
Long drawn battle since 2004 to replace the archaic law
Constant dialogue with stakeholders for 10+ years
Focus on increasing the bar on governance through:- Increased reporting;- Higher auditor, director & management accountability;- CSR; and- Investor protection
Expected initiatives of the new Government (BJP led NDA)
Reduction in forms and approval levels
Empowering government officials with decision-making
Ensuring smoother transition for Corporates into the new Act
Introducing the long-pending Company Law Tribunal
4
Old v/s new
Companies Act, 2013 (‘new
Act’)
29 Chapters
470 Sections
7 Schedules
Rules corresponding to each chapter
Companies Act, 1956 (‘old Act’)
13 Parts(26 Chapters)
700+ Sections
15Schedules
Rules/orders scattered over 60
years!
5
Impact for foreign companies in India
At least 1 ‘Resident Director’ on the board
Mandatory financial year Women Directors for certain companies Cross-border mergers and
amalgamations Board meetings through video
conferencing Auditor rotation for certain companies Consolidation of accounts Advance receipt of capital to
commence business Prohibition on multiple buy-backs
within a year CSR requirements for certain
companies Related party transactions Reporting responsibilities Board meetings Forms and compliances
6
Burning issues
Grace period for appointing Resident Directors
Appointing a whole-time Company Secretary
Transition provisions for other matters
Form filing
Definition of foreign companies
Layered corporate structure
CSR under income tax
Dual regulations for the interim period
Increased formalities for company incorporation
Inter-company loans for real estate players
Definition of a listed company
Small companies merger
7
To do’s for you
Watch out for changes / amendments and enactment of remaining sections
Compliances through new forms, which are now on the government’s website
Ensure you’re not caught on the wrong side during the transition phase
Speak to experts about possible impacts on your existing business in India, if any, or potential concerns for setting up a corporate subsidiary in India
8
Reach out for more information!
Kapil DuaCFO & Director, Financial [email protected]
Abhinav SoodDeputy Manager, Tax & Regulatory [email protected]
Adrian MuttonChief Executive [email protected]
9
About Sannam S4
Sannam S4 is a specialist, single window service provider supporting the market entry and ongoing successful business development of international organizations in India, Brazil and China
We provide end-to-end practical support to our clients, helping organizations identify market opportunities, develop news sales leads and local partners, hire staff and build stable and efficiently run local operations.
By combining local technical expertise with practical advice, we deliver low risk and cost effective solutions enabling organizations to succeed in the market
Our mix of international and domestic personnel have a long track record of establishing successful businesses in developing countries. The team is comprised of dedicated local specialists, including accounting, tax, and inward investment advisors, payroll, human resource advisory and recruitment experts, along with market research and validation consultants.
To date, Sannam S4 has supported more than 150 organizations with their India market entry plans. Our clients span across different sectors and range from Fortune 500 companies to start-ups, universities, industry bodies, privately funded businesses and VC backed tech companies.
Sannam S4 has the largest team of market entry experts for the Education sector in India, and has particular strengths in the SME sector.
10
Our Client’s Journey @ Sannam S4
11
Sannam S4 India: Financial Consulting Services
Financial Consulting
Finance & Accounts
Corporate Legal &
Secretarial
Tax & Regulatory Consulting
- Payroll setup and management
- Accounting management- Accounts receivable &
payables- Financial reporting- IFRS conversions- Audit coordination- Foreign exchange
compliances- Monthly / periodic direct
and indirect tax compliances
- Withholding tax compliances
- Company incorporation- Bank account setup- Statutory registrations –
PAN, TAN, DIN, VAT / CST & service tax, professional tax, shop & establishment, excise etc.
- Annual secretarial compliances
- Professional director services
- Registered office services- Filings and liaison with
Ministry of Corporate Affairs
- Filings and liaison with Indian central bank and their authorized dealers
- FRRO registrations
- Business Structuring & Market entry planning
- Corporate tax planning- Moving expats into India- On-going financial, tax and
regulatory advisory- Annual direct tax
compliances- Transfer pricing advisory- Liaison with tax authorities- Audit coordination- Due-diligence & Health-
checks (Financial, tax and secretarial)
- M&A advisory (tax & regulatory)
12
Follow us: @sannam_s4For upcoming Webinars: #sannams4webinar
Top Related