Corporate digest magazine august, 2017 by venture care

Venture Care
D i g e s t
August 2017 INR 150/-
- (Legal & Compliances) - (Finance)- (Special Story)
CONSEQUENCES FOR NOT COMPLYING
WITH ANNUAL FILING WITH THE
REGISTRAR OF COMPANIES
CHALLENGES AND THE WAYS OUT
FOR BUSINESS VALUATION MODELS
WHY STARTING A BUSINESS AS
PRIVATE LIMITED COMPANY
IS NOT A GOOD IDEA
MAGAZINETHE SMARTEST WAY TO STARTING
AN ONLINE BUSINESS IN INDIA
- (Strategy)
Strategy | | |Finance Digital Legal
www.venture-care.com

2www.Venture-Care.com/Magazine August 2017
Index
Editorial
Special Story
Index
WHY STARTING A BUSINESS AS PRIVATE LIMITED COMPANY
IS NOT A GOOD IDEA
3
4
Legal & Compliance
CONSEQUENCES FOR NOT COMPLYING WITH ANNUAL FILING WITH THE
6
Indian Funding Update
INDIAN STARTUP FUNDING AND INVESTMENT CHART [JULY 2017] 23
Finance
CHALLENGES AND THE WAYS OUT FOR BUSINESS VALUATION MODELS 20
THE SMARTEST WAY TO STARTING AN ONLINE BUSINESS IN INDIA 27
8 STEP PROCESS FOR NEW PRODUCT DEVELOPMENT 29
HOW TO SETUP A FOREIGN COMPANY BUSINESS IN INDIA 31
Index
Strategy
EMPLOYEE STOCK OPTIONS (ESOPS ) – BENEFICIAL TO EMPLOYER AS WELL
AS EMPLOYEE
11
GUIDE ON FAST TRACK EXIT SCHEME- ALL YOU NEED TO KNOW 13
PROFESSIONAL GUIDE ON APPOINTMENT OF FIRST AUDITOR 18
WHY SHOULD YOU DO THE FEASIBILITY ANALYSIS BEFORE KICKING-OFF
A BUSINESS IDEA
34

2www.Venture-Care.com/Magazine Augest 2017
3 www.Venture-Care.com/MagazineAugust 2017
Editorial
gentleman used to walk every day in a
park. He saw that a beggar used to
come every day and sit in front of the gate
of park keeping a bowl on a box.
Prashant Kumar
One day, the gentleman asked the beggar
that what is inside the box. The beggar did
not reply. The very next day the person asked
the same. The beggar, getting irritated,
replied that he had found the box
somewhere along the road side and he did
not have any idea that what was inside. The
gentleman suggested him to open the box
and check. The beggar said there must not
be anything inside. The person insisted. The
beggar opened the box. There were gold and
diamond.
Moral of this “we don't believe in our gold
and diamond which are hidden within us”. We
need to explore. Youth of India must
recognize this fact.
Indian population also should know their potential and leave heard following mind set.
Jumping on the same boat may be good but innovation is required at every place.
Prashant Kumar
Editor
A
August 2017 edition of magazine is dedicated to legal aspects of business with some
strategic inputs.
Giving a legal structure to business is required. But which structure is best. You will
understand that what are the pros and cons of being private limited company. Many
companies especially start-up companies are sometimes careless in filing with ROC which
has severe repercussions. Company wants to reward their employees. The article discusses
that how it is beneficial for companies and employees both. The legal article contains that
how an unmanageable company can be closed without HC procedure. It a fast track exit
scheme. You will enjoy reading that who can become the first auditor of the company and
what is the procedure. Whenever there is transaction there is need for valuation. There are
many valuation models adopted by the valuer but each valuation model has some
challenges. The article discusses those challenges and the way out to overcome.
Happy Reading...

IS NOT A GOOD IDEA
IS NOT A GOOD IDEA
Private Limited Company is an ideal Business entity for a majority of medium and large sized
business, as it offers advantages from Liability protection to easy transferability.
However operating...
Private Limited Company is an ideal Business
entity for a majority of medium and large sized
business, as it offers advantages from Liability
protection to easy transferability. However operating
as Private Limited Company is not ideal for Micro
or small enterprises. Following are limitation
associated with Private Company which makes it
inappropriate for many businesses.
Here is the list –
Expensive Incorporation:
Private Company registration costs more than LLP
or proprietorship. More documentation required
for incorporation of Private Company.
To incorporate a private limited company, a
minimum of two shareholders are required. A
minimum of two shareholders and a maximum
of up to 200 shareholders are allowed in a
private limited company. The shareholders
could be natural persons or companies,
including foreign companies. There is no such
limit on a maximum number of shareholder/
members in case of proprietorship concern.
Limit on Maximum number of Shareholders:
Minimum Capital Requirement:
To incorporate Private Limited Company
minimum Rs. 1 Lacs and for Limited Company
minimum Rs.5 Lac's capital is required. So it is
not suitable for small enterprises which are not
capable of investing more money to start the
business.
Special Story

Special Story
Compliance Formalities:
A private Company requires more compliances
post incorporation. All companies are required to
hold Board Meeting, Annual General Meeting, get
the accounts audited, maintain statutorily. In
addition to this, a Company would also have to
maintain compliance with tax and labor laws, which
are applicable irrespective of the type of business
entity
MCA & Stock Exchanges' Compliances & Penalty:
The company has to file Annual Return and
Annual Report (XBRL format wherever applicable)
yearly with MCA. Listed Company has to do
quarterly compliance with Stock exchanges within
stipulated time period. But if documents are not
filed within stipulated time then there shall be huge
penalty levied by ROC and Stock Exchanges.
Personal Liability.
The Company has unlimited liability. Members of
the Company enjoy limited liability. However, in
following cases personal liability of directors and
members would also arise:
When in any act or contract the name of
Company has been misdescribed, those who have
actually done the act or made the contract shall
be personally liable for it.
When in course of winding up of a Company, any
business of the Company has been carried out to
defraud the creditors, persons who are knowingly
parties to such conduct shall be personally liable
for the debts of the Company
Division of ownership:
A major disadvantage of the private limited
company is that it requires a minimum Two
directors and shareholders. So any single person
cannot start a private Limited company. Hence
any major decision to be taken by a Company
would always require the consent of two persons.
Winding up of Company:
The procedure for winding up of a Company can
be complicated, time-consuming and costly when
compared to an unregistered partnership firm.
Hence, it's important to register a Company only
when the promoters are serious about using the
Company to operate a business.
Conclusion:-
It is better to incorporate LLP / proprietorship
for the small scale of Business, where there is no
need for more funds to run a business.
If you have any query please write in the comment box below
Start your business in a smart way with package om Venture Care
VC SmartStart

In this guide we are going to touch the following topics: Introduction to Annual Filing Timelines for
Annual Filing Estimated Normal and Additional Government Fees for small Companies Consequences of...
Legal & Compliance
IN THIS GUIDE WE ARE GOING TO TOUCH THE FOLLOWING TOPICS:
Introduction to Annual Filing
Timelines for Annual Filing
Estimated Normal and Additional Government Fees for small Companies
Consequences of not complying with annual filing
When a company obtains the status of a Defaulting Company
Procedure to be adopted for getting the status of an active company and making the company
fully compliant
Benefits of converting a company into an active company

Legal & Compliance
INTRODUCTION TO ANNUAL FILING:
Any Company incorporated in India whether it is a
subsidiary of the foreign company, joint venture
entity and others under the Companies Act, all are
required to file few forms in an electronic mode with
the concerned Registrar of Companies ( ).ROC
WHAT ARE THE E-FORMS FILED WITH ROC EVERY
YEAR?: AOC – 4: PURPOSE :
To file with Registrar of Companies the following
documents:
Financials of the company – Balance Sheet, Profit
and Loss account, Cash flow statement, it's
respective schedules
Auditor's Report – It is the view of Statutory
Auditor on the financial position of the company
and its affairs.
Accounting Policies – These are the accounting
treatment given by the company while preparing
accounts and financial statements
Notes to accounts – These are other financial
disclosures required to be given by companies
which are not separately reflected in Balance
Sheet and Profit and Loss account and it's
scheduled
MGT – 7: PURPOSE:
To disclose Registrar of Companies the following
information
List of Directors including executive and
non-executive
List of Shareholders
Change in Directors during the financial year
Change in Shareholding pattern during the
financial year
Dates of Meetings of Board, Committees and
Shareholders held during the year
Total share capital Authorised, Issued,
Subscribed, called up and Paid up
Total amount of Debentures, Deposits, Loans,
secured or unsecured as on financial year end
date
ADT – 1 PURPOSE:
For Intimation of Appointment of Statutory
Auditor to ROC
Director's Report – It is the Director explaining
company's affairs about various matters affecting
shareholders interest along with replies to
qualifications raised by the Statutory Auditor in its
Report

Legal & Compliance
TIMELINES FOR ANNUAL FILING:
As per newly introduced provisions of Companies Act 2013, every company shall close its financial
st
year on 31 March of each year (except some exceptions for first the financial year).
It is to be noted that all the timelines of Annual filing depend upon the end of financial year.
Sr. No. Name of Event Maximum time limit
The last date by which event
has to be completed in any
case
Hold Annual General
Meeting
Within 6 Months of end of
financial year
th
30 day of September every
year
1
Filing of Form ADT 1 Within 15 days of Annual
General Meeting
Within 15 days of Annual
General Meeting
2
Filing of Form AOC 4 Within 30 days of Annual
General Meeting
th
29 day of October every year
3
Filing of Form MGT 7 Within 60 days of Annual
General Meeting
th
29 day of November every
year
4
ESTIMATED NORMAL AND ADDITIONAL GOVERNMENT FEES FOR SMALL COMPANIES:
The Normal Government fees perform applicable to companies depends upon its Authorized
The Additional filing fees depends upon two factors, namely, Normal filing fees and the time period
of delay in filing forms
Additional fee rules for period of delay All forms
Up to 30 days
More than 30 days and up to 60 days
More than 180 days
2 times of normal fees
The estimated government fees perform are given in details in the table below:
Sr.
No
Authorized
capital
NORMALFiling Fees
(Amount in Rupees)
MAXIMUM ADDITIONAL
Filing Fees (12 Times of
Normal Filing Fees)
(Amount in Rupees)
Total Filing Fees Perform
(Amount in Rupees) for
all annual filing forms
Total filing FEES PER
YEAR if not filed within
timelines (Amount in
Rupees) (AOC – 4,
MGT -7, ADT – 1)
Total filing FEES PER
YEAR if filed within
time (Amount in
Rupees) (AOC – 4,
MGT -7, ADT – 1)
1
2
3
4
5
Less than 1,00,000
1,00,000 to
4,99,999
5,00,000 to
24,99,999
25,00,000 to
99,99,999
1,00,00,000
or more
200
300
400
500
600
2400
3600
4800
6000
7200
2600
3900
5200
6500
7800
7800
11700
15600
19500
23600
600
900
1200
1500
1800

Legal & Compliance
CONSEQUENCES OF NOT COMPLYING WITH ANNUAL FILING:
Description of Events Consequences of not complying with event
Holding Annual General
Meeting
Company and every officer of the company (including DIRECTOR)
shall punishable with fine – Upto Rs. 1,00,000/- Penalty in
case of Continuing Default – Rs. 5000/- per day
Filing of Form MGT 7 1. Company shall be punishable with fine – Not less than
Rs. 50,000/- which may extend to Rs. 5,00,000/-
2. Every officer (including Director) – – Fine: Not less than
Rs. 50,000/- which may extend to Rs. 5,00,000/- OR –
imprisonment for a term which may extend to six months OR –
Both
Filing of Form AOC 4 All the directors – Fine: Not less than Rs. 50,000/- which may
extend to Rs. 5,00,000/- OR – imprisonment for a term which may
extend to One Year OR – Both
WHEN A COMPANY OBTAINS A STATUS OF A
DEFAULTING COMPANY:
Companies Act Does not define Defaulting Company.
However, if a company does not comply with
annual filing for a period of 3 years or more, the
Registrar of Companiesmay change its status to
“Defaulting company” or “Defunct Company”.
CONSEQUENCES FOR COMPANY:
The company cannot file any e-form except Annu-
al filing forms, forms for appointment of Director,
Forms for Application to Registrar of companies, etc.
It means that company cannot execute any activi-
ty such as a change in Name, Change in registered
office, Issue or allotment of shares, etc.
CONSEQUENCES FOR DIRECTOR:
Unable to sign e-form of any company:
Many times situation arises while filing e-form
by a company which is not a defaulting
company, that a message pops-up that the
Director is not eligible to sign the e-form as the
signing director is also a director of defaulting
company. In such a situation, such a director is
required to complete annual filing of that
defaulting company and then he becomes
eligible to sign e-form of any other company.
Disqualified to become a Director in any other
company: If a company does not file its
financials (AOC – 4) or Annual Return (MGT – 7),
every director of such company is disqualified
to be a director in any other company.

Legal & Compliance
CONSEQUENCES FOR PROFESSIONALS:
Company Secretaries and Chartered Accountants of
this company cannot certify forms of any company.
Procedure to be adopted for getting the status of
an active company and making the company fully
compliant
Preparation of forms AOC 4, MGT 7 and ADT 1 of
the company and uploading it on the website of
MCA.(For documents required and government fees
for filing the above forms details are given in the
previous slide)
Application to the toRegistrar of Companies
change the status of the company to Active.
BENEFITS OF MAKING THE COMPANY ACTIVE:
BENEFITS WITH REFERENCE TO LEGAL
CONSEQUENCES:
Avoid legal consequences of penalty,
imprisonment to Directors and other officers in
default (could not understand this sentence)
Directors of company becomes bee eligible to sign
e-forms of any other company and does not
become disqualified to become director in any other
company
It serves as a notice to public of any information
required to be given by the company under any act
It may serve as a proof or evidence in the court
of law
BENEFITS WITH REFERENCE TO OTHER THAN
LEGAL CONSEQUENCES:
Helpful in creating a good public image While
drafting Board's Report, Companies include
some additional information in it which may
include:
Companies include Management Discussion
which serves as a medium of vital information
to the public. the company through this,
communicates various future plans and
running projects, future prospects, strengths
of the company, steps taken or to be taken
by the company to overcome its weaknesses
and various other information which creates
a good image in mind of public, government
and regulatory authorities.
Transparency: If a company follows all legal
provisions of the Act in an ethical manner, it
means, it maintains transparency among
public and creates an image of the ethical
company in minds of public, regulatory and
government.
As these documents are filed with Government
Authorities and certified by professionals, it
seems to public documents can create more
confidence t than any other document even if
it is circulated in public through any other
expensive medium. Therefore it is a cheap way
to communicate information to the public
while gaining more confidence.
If you have any query or question please
comment in the comment box below or Contact
us. We would love to help you.

Legal & Compliance
EMPLOYEE STOCK OPTIONS (ESOPS )
– BENEFICIAL TO EMPLOYER AS WELL
AS EMPLOYEE
Employee Stock Options (ESOPs)ESOPs (Employee Stock Option
Schemes) are programmes proposed with the basic interest of both,
employers and employees. The company providing the scheme gives
the employees an...

Legal & Compliance
Employee Stock Options (ESOPs)ESOPs (Employee
Stock Option Schemes) are programmes proposed
with the basic interest of both, employers and
employees. The company providing the scheme
gives the employees an incentive in the form of
ownership interest, while the employer is able to
retain a high quality employee it would not
otherwise be able to afford. By providing stock
options, either at a particular rate fixed by the
company or through various schemes designed by
the board of directors, ESOPs are issued for mutual
benefits and are considered the most practical
means of motivating and retaining an employee.
ESOPs are issued in the form of direct stock,
bonuses or through profit-sharing plans, and only
the employer has the right to decide who can avail
of the options. However, ESOPs are just options,
which can be purchased at a certain price before a
certain date or not. There are certain norms and
rules set by the Company Rules Act, 2014 for
granting of ESOPs to employees.
Essential terms in ESOP
While the broad definition of an ESOP may be
clear, its finer details can be pretty hard to
understand. Let's go through them, one by one, to
understand them better. Grant: This is the process
through which the employee is offered the share.
Grant price and grant date are the price at which
the shares are offered and the date on which it is
made available. Before granting the shares, the
company gives an option to the employee to either
purchase it or leave the option. Vesting period: The
specific time the employee must wait to exercise the
ESOP options is the vesting period. The employees
can wait until the vesting period to convey to the
employers their decision about buying the stocks
(ESOP) offered. Once the vesting period is over, and
if the employees decide to purchase the shares, they
need to remit the exact amount demanded for the
shares to purchase them.
Benefits of ESOP plans
Although employeeOwner's perspective:
retention, motivation and awarding hard work
are all the benefits that comes out of ESOP for
an employer, there are various other notable
advantages too, especially for startups. With
E S O P op t i o n s , o n e ca n avo i d ca s h
compensations as a reward, thereby saving on
the immediate outflow of cash. For startups
especially, when they are on the verge of
expanding, or beginning their operations on a
larger scale, awarding employees in the form
of stock options will work out to be a feasible
method than cash rewards. ESOPs are given
as a motivation to the employees. Since the
employees will be benefitted in turn, when the
share prices increase, it will be an incentive
enough for the workers to put in their 100%.
Similarly, ESOPs can also help you attract the
best talent in the market.
Employees have theEmployee's perspective:
benefit of acquiring shares at a nominal rate,
and also selling it (after a suitable tenure set
by the employees) and gaining the profit. If,
for instance, the share prices shoot up, as it is
bound to happen when a company grows over
the years, a good deal of profit is gained by
selling the shares. Certain companies set
ESOPs as a separate entity other than the
salary options, and hence, it adds on to the
benefits you receive as an employer. ESOPs are
a part of an employee's salary, and hence, are
taxable income, exercised as per the rules.
Hence, ESOPs are both beneficial options to an
employer as well as an employee. However, it
is crucial to understand the terms and
conditions pertaining to ESOPs and also to
understand that granting ESOP itself does not
signify enormous cash benefits. The share price
on the say you sell them (after a cliff period)
and also any other conditions, all needs to be
checked before exercising the option or as for
employers, before providing them to the
workers.

Legal & Compliance
GUIDE ON FAST TRACK EXIT SCHEME-
ALL YOU NEED TO KNOW
GUIDE ON FAST TRACK EXIT SCHEME-
ALL YOU NEED TO KNOW
In this guide, we are going to touch the following topics- Introduction for Fast Track Exit Scheme
Who shall opt for Fast Track Exit Scheme Consequences of not opting...
In this guide, we are going to touch the following
topics-
Introduction for Fast Track Exit Scheme
Who shall opt for Fast Track Exit Scheme
Consequences of not opting for FAST TRACK EXIT
SCHEME
Which company is ineligible for filing under Fast
Track Exit Scheme
Which Company is eligible for filing under Fast
Track Exit Scheme
Procedure to be FOLLOWED FOR FAST TRACK EXIT
SCHEME
INTRODUCTION OF FAST TRACK EXIT SCHEME:
It is a fast process to close a withoutcompany
adopting a lengthy procedure for company
closure by passing a special resolution,
applying to high court, appointment of
liquidator and so on which may take not
less than six months and also it is a very
expensive process which is not affordable to
small companies and sick companies. The
Ministry has issued Guidelines for Fast Track
Exit Mode to give the opportunity to the
defunct companies to get their names struck
off from the register under section 560 of the
Companies Act, 1956.

Legal & Compliance
As no separate procedure is given by newly
introduced Companies Act, 2013 and the circular
issued in the year 2011 under Companies Act, 1956
is still in force for the closure of the company.
THE MOST IMPORTANT BENEFITS OF FAST TRACK
EXIT SCHEME ARE AS BELOW:
The inoperative Companies which are not
generating any revenue nor complying with its
annual filing, have got a new option to close
company without paying huge additional fees.
It is a short process in which company can be
closed without huge documentation.
It is a time-saving
WHO SHALL OPT FOR FAST TRACK EXIT SCHEME:
The small companies which are
Inoperative
Not complying with any annual or other filings
with Registrar of Companies
Operating in loss and lost hope of making profit
The company does not have any object or
continue with it
Shall apply to Registrar of Companies for the
closure of the company.
CONSEQUENCES OF NOT OPTING FOR FAST
TRACK EXIT SCHEME:
The above type of companies (given in the
last slide) which does not choose Fast Track
Exit Scheme, could suffer following
consequences:
There is a very strong possibility that, for the
companies which are inoperative and not
carrying on any mandatory annual
compliances under Companies Act, 2013,
could receive notice from Registrar of
Companies, under which jurisdiction the
Registered office of the company falls, for not
complying with annual filing.
In such a situation, Directors of the company
shall have to appear before the court and
explain the reason for non-filing of documents
with Registrar of companies. After that, the
company will have to complete their annual
filing and other compliances and present a
proof of such filing to the court. On non-
complying with the directions of the court,
directors may have to suffer huge penalties,
imprisonment, etc.

Legal & Compliance
PROCEDURE TO BE FOLLOWED FOR FAST TRACK EXIT
SCHEME:
The Company shall file an application in prescribed
form FTE online with the Registrar of with fees of
Rs. 5000/-
ATTACHMENTS:
In affidavit which should be sworn by each of the
existing director(s) of the company before a First
Class Judicial Magistrate or Executive Magistrate
or Oath Commissioner or Notary, to the effect
that the company has not carried on any business
since incorporation or that the company did some
business for a period up to a date (which should
be specified) and then discontinued its operations,
as the case may be;
Indemnity Bond, duly notarized to be given by
every director individually or collectively, to the
effect that any losses, claim and liabilities on the
company, will be met in full by every director
individually or collectively, even after the name
of the company is struck off the Register of
Companies;
Statement of Account duly certified by CA in
practice or auditor of the company.
Board resolution showing authorization for filing
the form.
In case, the application in Form FTE, is not being
digitally signed by any of the director or Manager
or Secretary, a physical copy of the Form duly
filled in, shall be signed manually by a director
authorized by the Board of Directors of the
company and shall be attached with the
application Form at the time of its filing
electronically;
In case, the applicant name is not available in
the database of directors maintained by the
Ministry, the application shall be accompanied
by certificate from a Chartered Accountant in
whole time practice or Company Secretary in
whole time practice or Cost Accountant in
whole time practice along with their membership
number, certifying that the applicants are the
present directors of the company. In such cases,
the applicants shall not be asked to file Form-
32 and Form DIN-3.
The company shall disclose pending litigations
if any, involving the company while applying
under FTE.
If the pending prosecutions are only for
non-filing of Annual Returns and Balance
Sheet such application may be accepted
provided the applicants have already filed the
compounding application. However, steps for
final strike of the name of the company will
be taken only after disposal of compounding
application by the competent authority.

Legal & Compliance
WHICH COMPANY IS INELIGIBLE FOR FILING UNDER
FTE SCHEME:
Listed companies;
Companies that have been de-listed due to non-
compliance of Listing Agreement or any other
statutory Laws,
Companies registered under section 25 of the
Companies Act, 1956 or section 8 of Companies
Act, 2013
Vanishing companies;
Companies where inspection or investigation is
pending or any proceedings are pending in the
court
Companies against which prosecution for a non-
compoundable offense is pending in court;
Companies accepted public deposits which are
either outstanding or the company is in default in
repayment of the same;
Company having secured loan;
Company having management dispute;
Company in respect of which filing of documents
have been stayed by court or Company Law
Board (CLB) or Central Government or any other
competent authority;
The company having dues towards income tax or
sales tax or central excise or banks and financial
institutions or any other Central Government or
State Government Departments or Authorities or
any local authorities.
WHICH COMPANY IS ELIGIBLE TO APPLY UNDER
FAST TRACK EXIT SCHEME:
Company having NIL assets and liabilities
Company inoperative since the date of
Incorporation or 1 Year or more
The has closed down its bank account.
PROCEDURE TO BE ADOPTED BY REGISTRAR OF
COMPANIES IN THIS MATTER:
The Registrar of Companies, on receipt of the
application, shall examine the same and if
found in order, shall give a notice to the
company under section 560(3) of the
Companies Act, 1956 by email to its e-mail
address intimated in the Form, giving thirty
days time, stating that unless cause is shown
to the contrary, its name be struck off from
the Register and the company will be
dissolved;
The Registrar of companies shall put the
name of applicant(s) and date of making the
application(s) under fast track exit mode, on
d a i l y b a s i s , o n t h e M C A p o r t a l
http://www.mca.gov.in/, giving thirty days
time for raising an objection, if any, by the
stakeholders to the concerned Registrar;

Legal & Compliance
In case of company(s) like Non-Banking Financial
Company(s), Collective Investment Management
Company(s) which are regulated by other
Regulator(s) namely RBI, SEBI, the Registrar of
Companies, at the end of every week, shall send
intimation of such companies availing fast track
exit mode during that period to the concerned
Regulator(s) and also an intimation in respect of
all companies availing fast track exit mode
during that period to the office of the Income Tax
Department giving thirty days time for their
objection, if any;
EXPLANATION:
“Non-Banking Financial Company” means a
company as defined in clause (f) of section 45-I
of the Reserve Bank of India Act, 1934
“Collective Investment Management ” means the
company as defined in clause (h) of
sub-regulation of 2 of Securities and Exchange
Board of India (Collective Investment Companies)
Regulations, 1999
The Registrar of Companies immediately after
passing of time given in sub-part (a) to © of
this Para and on being satisfied that the case
is otherwise in order, shall strike its name off
the Register and shall send a notice under
sub-section (5) of section 560 of the
Companies Act, 1956 for publication in the
Official Gazette and the applicant company
shall stand dissolved from the date of
publication of the notice in the Official
Gazette
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Legal & Compliance
PROFESSIONAL GUIDE ON
APPOINTMENT OF FIRST AUDITOR
PROFESSIONAL GUIDE ON
INTRODUCTION Individual or audit firm can become the first auditor To
the company according to the companies act 2013.No other person can be
appointed as an auditor of the...
INTRODUCTION
Individual or audit firm can become the first
auditor To the company according to the
companies act 2013.No other person can be
appointed as an auditor of the company. The first
auditor of the company should be a Chartered
accountant.
After annual general meeting within 30 days,
a financial statement along with the auditor's
report shall file with the register of companies.
Each tax filing needs a comprehensive report
from the auditor, in every financial year a private
limited company is required to submit its audit,
reports duly assessed and checked by an auditor
as well as the other requirements Sections 139 to
148 of the companies Act 2013 gives a complete
and detailed summary of the role of an auditor.
Chartered accountant firm's registration number
must be there in the company's resolution for the
appointment of the first auditor. Till the
conclusion of the first annual general meeting,
he first auditor shall hold office. The company
needs to convey an extraordinary general meeting
by issuing a notice to all the members in writing,
in case board of directors failed to appoint the
first auditor within 30 days of incorporation. Such
members within 90 days from the date of failure
to appoint shall appoint the first auditor in the
extraordinary general meeting.

Legal & Compliance
Within 30 days of Incorporation, the first
auditor of the company shall be appointed by
the Board. An EGM shall be called within 90
days to appoint the first auditor In the case of
Board's failure to appoint the first auditor as
per Section 139(6). The 90 days time limit
starts from Incorporation of the company
rather than the expiry of 30 days(i.e. failure
of Board) however, the law is silent regarding
from when this time limit of 90 days be
reckoned.
Tenure: – st
Till conclusion of the 1 annual general
meeting.
Remuneration: –Remuneration of the first
auditor can be decided by the Board As per
proviso to section 142(1) of company law.
st
Appointment of 1 auditor require obtaining
written consent, certificate and filing of form
ADT-1.
Section 139(6) governed the appointment of
f i r s t a u d i t o r, n o n - o b s t a n t e c l a u s e
[notwithstanding anything contained in
sub-section (1)] and it is sub-section (1) require
obtaining consent & certificate from auditor and
filing of form ADT-1 with ROC.
Interpretation of “notwithstanding anything
contained .”: – the non-obstante clause is used
to avoid the operation and effect of all contrary
provisions as per Supreme Court view. Thus, the
no-obstinate clause will prevail In case any
departure between a non-obstante clause and
other provisions.
Since Section 139(6) does not speak anything
contrary to Section 139(1) as far as obtaining of
consent, certificate and filing of a form are
concerned. Thus, it can be interpreted that
ADT-1 should be filed with ROC for first auditor
appointment.
PROCEDURE
1. Convey the message to the proposed auditor as
regard to the intention of appointing him/it as
auditor whether he/ it is eligible and not
disqualified to be appointed as auditor of the
company.
2. Obtain consent & certificate from auditor.
3. Obtain recommendation of the audit committee
if it is required to be constituted.
4. Call Board meeting.
5. At the first board meeting approve the
appointment of auditor.
6. Intimate the auditor and file with ROC form
ADT-1(to be attached in form GNL-2 as per MCA
circular 09/2014 dated 25th April 2014) within
15 days.
ST
APPOINTMENT OF AUDITOR AT 1 AGM
Every company shall appoint an individual or a
st
firm as an auditor of the company in its 1 annual
general meeting who shall hold office from the
conclusion of that meeting, till the conclusion of its
sixth annual general meeting as per Section 139(1)
of the Act.
Tenure subject to ratification: – At every AGM the
tenure of 5 consecutive years is subject to
ratification by shareholders
Remuneration: – Remuneration of the auditor of a
company shall be fixed in its general meeting as
per section 142(1) of the Act or in such manner as
may be determined therein.

Finance
CHALLENGES AND THE WAYS OUT FOR
BUSINESS VALUATION MODELS
Generally, there are four popular valuation models: Discounted Cash flow (DCF) model Relative
valuation model, and Asset base valuation model Earning Capitalization model
Let's start with DCF model. For...
Generally, there are four popular valuation
models:
1. Discounted Cash flow (DCF) model
2. Relative valuation model, and
3. Asset base valuation model
4. Earning Capitalization model
Let's start with DCF model.
For raising equity or other finance from any other
sources, valuer uses this model. Valuer heavily relies
upon the expected future cash flows as communicated
by the management. But the valuer should reduce the
future expected cash flows because the management
may be biased (it has to raise funds). These cash flows
are estimated for a certain time period, say 3-5 years.
After that, these cash flows are discounted at a well-
estimated discount rate. Cash flows may be Free
Cashflow to Firm (FCFF) or Free Cash Flow to Equity
(FCFE). Of course, this valuation model is used as a
going concern.

Finance
Where are the loopholes?
Expected future cash flows are prone to
change due to various factors such as
competitors' strategy, technological changes,
brand dilution, change in management
strategy etc.
How to fix up the discount rate? It is also
subject to change over years. Also, there are
many factors which affect the discount rate
and these factors are unpredictable.
The way out....
Do sensitivity analysis by changing the cash
flows and the discount rate.
Value your business frequently whenever there
is the change in external or internal situations.
Now, let's have a look at relative valuation
model:
This model is used to value a business in
relation to similar business. Earnings and/or
cash flows of the business undervaluation is
compared with those of the similar business and
with the help of the given price of the similar
b u s i n e s s , t h e p r i c e o f t h e b u s i n e s s
undervaluation is estimated.
The difficulty is that:
Whether the similar business operates in the
same products, markets
Whether the similar business uses the same
technology
Whether the similar business is as old as this
business
Whether price/value of the chosen similar
business is unbiased etc.
The way out....
It is better to choose the very close similar
business which operates in the same market and
has very similar product.
Choose more than one similar business and if
possible compare the business with the industry
average.
Adjust the price/value of the similar business
upward or downward
3rd comes Asset Valuation model
Many people believe that this valuation cannot
be used for going concern businesses. Partially true.
This model can be used for those businesses also
but there must be significant productive assets. It
includes R&D, IP, TM etc also.
The difficulty is that how the productive assets can
be valued and what is the expected life of those
assets
The way out is that asset valuer should value
those assets at expected market value and asset
value and the expected life of the assets should
undergo sensitivity analysis.

Finance
The last popular model is Earning Capitalization
model:
Under this method, Equity earning is
capitalized at a certain rate. This model
assumes that the present earning shall remain
fixed forever.
The loopholes:
This model does not consider growth in the
business.
The rate at which earning is capitalized is
prone to change
The way out:
Consider the average earnings for last 3-5 years.
Calculate the average growth in earnings for last
3-5 years and estimate it for next 1st future year
and then capitalize it.
Do sensitivity for earning, growth rate and the
discount rate.
To conclude, no valuation model is full proof. To
value any business, valuation models in combination
should be used

Indian Funding Updates
Indian Startup Funding And
Investment Chart
July 2017

Sr.
No.
Date
(dd/mm/yyyy)
Startup
Name
Industry/
Vertical
Sub-Vertical
City /
Location
Investors'
Name
Investment
Type
Amount
(in USD)
Reliance
Corporate
Advisory Services
Ltd
Seed Funding 1,000,000Peer to Peer Lending
platform
BangaloreConsumer
Internet
Billion Loans01/07/20171
Infuse Ventures,
JLL
Private Equity 2,600,000Energy management
solutions provider
AhmedabadTechnologyEcolibriumenergy03/07/20172
Asset Management
(Asia) Ltd, Digital
Garage Inc
Private Equity 20,000,000Online marketplace for
automobiles
GurgaoneCommerceDroom04/07/20173
Kalaari Capital,
Nexus India
Capital Advisors
Private Equity 8,500,000online marketplace for
food and grocery
BangaloreeCommerceJumbotail05/07/20174
International Finance
Corporation,
Rocketship, Accel
Partners, Jungle
Ventures, Shailesh
Rao, Venture Highway
Private Equity 12,000,000B2B marketplace for
Industrial products
NoidaeCommerceMoglix05/07/20175
BCCL Private Equity 1,000,000Hyperlocal home services
provider
MumbaiConsumer
Internet
Timesaverz05/07/20176
N/A Seed Funding N/Aparenting blog and kids'
events discovery platform
GurgaonConsumer
Internet
MyCity4Kids06/07/20177
Blume Ventures,
Contrarian Capital
India Partners,
Emergent Ventures
India, Pallav Nadhani,
Ashish Gupta, Sharad
Sharma, Sirion Labs
Seed Funding N/ACloud Solutions Provider BangaloreTechnologyMinjar06/07/20178
India Quotient,
Shunwei Capital
Seed Funding 1,000,000Digital Media Video
platform
BangaloreConsumer
Internet
Clip App07/07/20179
Sreeram Iyer, Suvo
Sarkar, Anita
Gupta, Likemind
Ventures
Seed Funding N/AMF investment platform BangaloreConsumer
Internet
Upwardly.in07/07/201710
Mitsui & Co. Private Equity 3,000,000Workshop Management
Software Platform
HyderabadTechnologyAutorox.co10/07/201711
Dunamis
Ventures Pte Ltd
Private Equity 2,250,000Salon & Spa Aggregation
& Discovery platform
PuneConsumer
Internet
Fagobo11/07/201712
Venture Catalysts,
Sourav Ganguly,
Ankit Aditya, Moksh
Sports Ventures
Seed Funding 464,000Video Content Discovery
Platform
MumbaiConsumer
Internet
Flickstree11/07/201713
Fireside Ventures,
Apurva Salarpuria,
Sidharth Pansari,
Sprout Capital
Seed Funding N/AOnline Interior Design
platform
BangaloreConsumer
Internet
Design Cafe11/07/201714
SBI-FMO Fund,
essemer Venture
Partners,
Catamaran Ventures
Private Equity 18,500,000Digital payments solutions BangaloreTechnologyInnovity12/07/201715

Sr.
No.
Date
(dd/mm/yyyy)
Startup
Name
Industry/
Vertical
Sub-Vertical
City /
Location
Investors'
Name
Investment
Type
Amount
(in USD)
Corvus Ventures,
MAPE Advisory
Group
Private Equity N/ADoor Step Delivery
platform
HyderabadLogisticsVdeliver12/07/201716
500 Startups, Purvi
Capital, Rajan
Anandan, Abhishek
Gupta
Seed Funding N/AChatbot creation tool BangaloreTechnologyBott.mer12/07/201717
Indian Angel
Network
Seed Funding N/ANext Gen Mobility device
manufacturer
PuneTechnologyArcatron12/07/201718
Brigade Innovations
LLP, TV Mohandas
Pai, Suhail Rahman,
Bobby Reddy, M
George
Seed Funding 540,000Construction site operations
and analytics platform
BangaloreTechnologyQuickspec14/07/201719
Blacksoil Capital
Pvt. Ltd
Private Equity 1,700,000Designer consumer
products Marketplace
BangaloreeCommerceChumbak14/07/201720
Sequoia Capital,
Grey Orange,
Rajesh Ramaiah,
Anshuman Das,
Rishi Das
Seed Funding 2,000,000Sales Solutions for
Fashion Brands
BangaloreTechnology17/07/201721 Increff
IDG Ventures
India Advisors,
Jungle Ventures
Private Equity 4,000,000Enterprise Banking
Solutions
PuneTechnology17/07/201722 Vayana
One97
Communication
Ltd
Private Equity N/AMobile Services &
Solutions
NoidaTechnology18/07/201723 Mobiquest
Uber Technologies
Inc, Amaya Capital
LLP
Seed Funding N/AAmbulance
Aggregation Services
HyderabadConsumer
Internet
18/07/201724 Ambee
Xelpmoc Seed Funding N/AOnline Insurance
platform
KolkataConsumer
Internet
18/07/201725 Ideal
Insurance
Kae Capital Seed Funding N/AMobile games creator BangaloreTechnology18/07/201726 Hypernova
Interactive
ain Capital
Ventures, Renaud
Laplanche
Private Equity 10,000,000Consumer Leasing
Platform
BangaloreConsumer
Internet
19/07/201727 Rentomojo
Francesco Cara Seed Funding N/AAI powered recruitment
platform
BangaloreConsumer
Internet
19/07/201728 AirCTO
ABI-Showatech
(India) Ltd
Seed Funding 600,000Gamified Learning App BangaloreTechnology19/07/201729 Playablo
Kae Capital,
M&S Partners,
Seed Funding 700,000Online payments
platform
GurgaonTechnology20/07/201730 Trupay
Subramani
Somasundaram,
Sundeep Sahni,
Mayank Mittal &
Others
Seed Funding 200,000Online Marketplace for
Construction Material
GurgaoneCommerce20/07/201731 Brick2wall

Sr.
No.
Date
(dd/mm/yyyy)
Startup
Name
Industry/
Vertical
Sub-Vertical
City /
Location
Investors'
Name
Investment
Type
Amount
(in USD)
Harmeet Bajaj,
Pameela P,
Fusiontech
Ventures & Others
Seed Funding N/AWomen Work wear
etailer
New DelhieCommerceFablestreet21/07/201732
Sunil Kalra,
Aditya Singh,
Rishi Srivastava,
Rajan Anandan
Seed Funding N/AMachine Learning
Access platform
New DelhiTechnologyMonsoon
Fintech
21/07/201733
Blume Ventures,
NB Ventures,
Nspira
Seed Funding N/AHealthy Food Delivery
Platform
BangaloreConsumer
Internet
Monkey Box21/07/201734
Stellaris Venture
Partners
Private Equity 1,200,000Mobile-first Enterprise
communication
platform
BangaloreConsumer
Internet
Noticeboard25/07/201735
Tencent Holdings Private Equity 35,000,000Mobile Learning App BangaloreConsumer
Internet
Byju’s25/07/201736
Yuvraj Singh Seed Funding N/ACo-Working Space
Provider
New DelhiOthersCreator’s
Gurukul
26/07/201737
Goldman Sachs Private Equity 25,000,000Budget hotels brand &
Aggregator Platform
New DelhiConsumer
Internet
Fab Hotels26/07/201738
Indian Angel
Network, Anand
Mahindra
Seed Funding 200,000Assisted Learning
Startup
BangaloreConsumer
Internet
ThinkerBell26/07/201739
Source- www.track.in
HBM Healthcare
Investments, Maverick
Capital Ventures,
Sequoia India,
Omidyar Network
and Kae Capital
Private Equity 15,000,000Online Pharmacy GurgaoneCommerce1mg27/07/201740
Amen Dhyllon Seed Funding N/AApp-based Aggregator of
Offline Businesses
MumbaiConsumer
Internet
Jhakaas28/07/201741
Info Edge (India)
Ltd
Seed Funding 1,250,000Beauty Services
Marketplace
MumbaiConsumer
Internet
BigStylist28/07/201742
RoundGlass
Partners
Seed Funding N/Aonline marketplace
for discovering fitness
centres
BangaloreConsumer
Internet
Gympic.com28/07/201743

Strategy
THE SMARTEST WAY TO STARTING
THE SMARTEST WAY TO STARTING
Don't try and build a business until you read this – Just imagine what
it would be like to build an attractive business that avoided all of the...
Don't try and build a business until you read
this-
Just imagine what it would be like to build an
attractive business that avoided all of the risks
that cause 90% of new businesses to fail.
What would it be like to avoid all the
frustrations, disappointment, and public
humiliation of trying to build a business around
an idea that was highly valued in your mind but
no one else would pay for it?
Note 1: Economics always teaches us to match a
supply with the demand.
Good businesses fill a need in theNote 2:
marketplace.
Great businesses solve painful problemsNote 3:
in the marketplace.
Most entrepreneurs fail to find the real demand
before they start and many of them think that
they create the demand which rarely works.

Strategy
Do you know how hard it is to try and convince
someone they want or need something when in
reality, they don't? Even if it's “cool”? This is where
many businesses fail.
They fail to provide a product that their market
REALLY REALLY WANTS and NEEDS!
So this question may arise for you: “How do I
know what my customers really really want?”
Follow these 6 phases to starting a business
th
successfully? At the 6 phase your business will
be a super hit, here are the phases
1.Tune Your Mind set
Find BIG opportunities to start profitable
companies from scratch
2.Idea Extraction
Find & Select Profitable Ideas Even When
You Have Nothing
3.Sketch The Solution In front Of Your
Potential Customers
Show your solution up front to build trust and
rapport with customers.
4.Pre-Selling
Get your customers to fund the development
of your software so you have ZERO RISK.
Do you want an insider's lesson? Follow the
6 part process above and train your mind to
see opportunity and you will find it
everywhere.
And then...
Take action.
Take action.
Take action.
Keep going and don't stop until you win.
“Nothing in this world can take the place of
persistence. Talent will not. Nothing is more
common than unsuccessful men with talent.
Genius will not. Unrewarded genius is almost a
proverb. Education will not. The world is full of
educated derelicts. Persistence and determination
alone are omnipotent.”
— Calvin Coolidge
5.Build and Develop the Product
Out source the development of your software
with the Pre-Sales money to A+ developers
so you can live the lifestyle you desire.
6.SCALE!
Release And Launch to 1000/month and then
go beyond!

Strategy
8 STEP PROCESS FOR
NEW PRODUCT DEVELOPMENT
8 STEP PROCESS FOR
NEW PRODUCT DEVELOPMENT
Have you ever thought about how a few organizations figure out how to market whole product
offerings effortlessly while others still struggle to trump up the interest? Building up...
Have you ever thought about how a few
organizations figure out how to market whole
product offerings effortlessly while others still
struggle to trump up the interest? Building up a
new product shouldn't feel like you're battling
with the dark forces. There are some easier ways
too. For that you need to build up a clear road
map which will become an organized guide to
your business a clear path to follow. New
product development process includes the
complete journey from generating the concept to
launch the product into market. When you will
set the means and tail it up to check, product
development will turn into a more engaged and
adaptable approach that can be adjusted for
every single diverse kind of items and
administrations. Process flow is covered in
following 8 Steps:
Idea Generation New product Development
process starts with the Generating Idea or the
Concept. According to experts, Coming up with
fresh ideas has often been considered as one of
the hardest phase of this whole process. In the
beginning all ideas are good ideas up to certain
extent, so it can come from many different
directions. This is because experts often go for
extensive research of industry and market trends
before heading towards the next level.
1.
2.Screening of Ideas Screening of ideas is a crucial
stage in this process, as it needs to ensure that
unsuitable ideas should get rejected as soon as
possible. So how to differentiate between great
concepts which will attract the buyers and ideas
which will hamstring your campaign before it
even begins? So this is done by making sure the
profit potential of the product, checking things
like expected customer class, size of the target
market, market growth.

Strategy
3. Developing and Testing of the Concept Now
your idea has passed the screening test. This
next phase is the part where companies start
working on the concept. By surveying with the
questions like “How do we get this to work?”,
“Did you understand the concept..??” we can
check the whether consumer has got enough in
depth information about it so he can visualize
it or not. Amid this stage, the association and
the advertising division will resolve points of
interest like the advantages of the item,
showcasing standards, generation costs, and
expected client reaction.
4. Business Analysis Once the concept has been
tested and finalized, company decision-makers
will turn their attention to the numbers, by
assessment of the profitability of the product.
Because if the production cost is too high for a
potentially lucrative idea, then its better not to
account it. So the analysis includes detailing of
marketing strategy, highlighting the target
market, product positioning and the marketing
mix which will be useful. It also includes
analysis of product demand, costs of full
appraisal, competitor study and identification
of break-even point.
5. Product Development when a new product
gets approval, it has sent to the technical and
new product development department. They
make a prototype model to check exact design,
dimensions & specifications and suitable
manufacturing processes. It also gives space for
consumer testing, their feedback on about the
products look, feel and performance with their
quality tests.
6. Technical Aspects Whether you are selling a
tech product or simple toy, the technical
aspects of the product need to be cross-verified
ahead of time. This is the place things like
specialized aides, plans, leave procedures, and
monetary estimations are dealt with before the
item is formally launched in the market. This
procedure is required to approve the entire idea
and is utilized for further refinement of all
components.
Commercialization This is the phase where the
marketing campaign and the sales funnel
associated with the product start working
together. At the point when the idea has been
created and tried, ultimate conclusions should
be made to move the item to its dispatch into
the market. Valuing and promoting plans should
be concluded and the business groups and
conveyance informed, so that the item and
organization is prepared for the last stage.
7.
Launching in the market. A detailed launch plan
is very much essential for this stage where it can
run smoothly and make a maximum impact. This
launch plan includes decisions regarding time
and place for launch to primary focused
customer class.
8.
At last we should be with a specific end goal to
learn from any errors made, a feedback of the
market performance of the product which is
needed to assess the product. New product
development can be made much complex and
centered, with a higher probability of success, by
following these steps.

Strategy
HOW TO SETUP A
FOREIGN COMPANY IN INDIA
HOW TO SETUP A
FOREIGN COMPANY IN INDIA
How to Setup a Foreign Company Business in India Due to economic revolution and
globalization, mostly companies in the world looking to expand their operations
throughout the Globe. In...
How to Setup a Foreign Company Business in
India[/caption] Due to economic revolution and
globalization, mostly companies in the world
looking to expand their operations throughout
the Globe. In the recent past due to India
Economy booms and Government also open
doors to foreign nations company to invest in
India, many foreign companies comes forward to
setting up their business in India. Wholly owned
Subsidiary is one of the business formation where
a foreign entity can setup business in India. This
blog helps in understanding about the Wholly
owned subsidiary(WOS) Registration of foreign
company in India
About WOS
When an Entity which is incorporated outside
India (i.e Foreign Country), makes 100% Foreign
Direct Investment (FDI) as per Indian FDI policy,
the Indian company incorporated for this purpose
is said to be wholly owned subsidiary of that
foreign entity. Under the current foreign
investment policy, a wholly owned subsidiary can
be established either under the automatic route,
if the conditions specified therein are complied
with (specific high priority industries) or obtain an
approval from the FIPB. This is the easy and best
method for setup a foreign-based Company in
India, where entire hold on the share capital of
an Indian company is held by Foreign Based
Entity.

Strategy
Key Feature of WOS
WOS is regulated by Indian Companies Act,
2013
All types of Business Activities are permitted
such as manufacturing, marketing, services
activity etc subject to FDI Norms.
Treated as Domestic Indian Company and
Indian Taxation apply and eligible for all
exemptions and deduction as applies to
Domestic Companies.
Type of WOS
In India, there are two form of
company incorporated
Private Limited
Public Limited
Private Limited Company has following
characteristics:
shareholders' right to transfer shares is restricted
the number of shareholders is limited to 200; and
an invitation to the public to subscribe for any
shares or debentures is prohibited.
Minimum paid up capital is 1,00,000.
Minimum 2 Director and 2 shareholders, One will
be Indian Resident Director.
Public Limited Company has following
characteristics:
It must have at least seven shareholders.
Minimum paid up capital must be 5,00,000
It must publish a prospectus or file a statement in
lieu of a prospectus before it can start transacting
business.
A public company is required to have at least three
directors.
Documents required for Registratio
/setup of Wholly Owned Subsidiary
(WOS).
1. 3 Passport Size photograph.
2. PAN CARD (Not mandatory in case of Foreign
Director).
3. Passport (Mandatory for Foreign Director, Must
be in English Language and duly apostile).
4. Address proof (Driving License, Voter ID,
Passport, Aadhar Card).
5. Any one of following (Bank Passbook, Credit
Card Statement, Telephone Bill, Electricity Bill).
6. Proof of Registered office in India-Electricity
Bill, Leased deed or Rent Agreement.
7. If the proposed director is in a foreign country
then all the documents must be duly apostile
by the home country & if a director is presently
in India then such apostile is not required.

Strategy
Process required for registration/
setup of Wholly Owned Subsidiary
(WOS) in India.
1. Obtaining (Director Identification Number) DIN
for all Directors.
2. Obtaining Digital Signature for all the directors.
3. Filling Application for Name Reservation for the
proposed Company.
4. Drafting Memorandum & Articles of Association.
5. Subscription to the Memorandum by the
shareholders and appropriate person.
6. Submission of all the documents to the
Concerned Registrar of Companies (ROC).
7. Receipt of Certificate of Incorporation from
the ROC.
8. Apply for PAN CARD and an opening of Bank
Account.
9. Submission of Documents for FDI Compliance
after Subscription of Share Capital.
Cost for Registering a Company in
India
The cost for registering a business in India is
relatively inexpensive. Registration of a
company in India can also be completed within
a few weeks, making India an easy place to
start a business.
Post Incorporation Formalities
Post registration of the company in India, the
Indian Director can help open a bank account
for the company in India. Once the bank
account is opened, the Company must make
FDI reporting to the Reserve Bank of India. The
procedure for reporting FDI inflow into the
company is simple and can be completed easily
by a legal or accounting professional in India.
Completing the FDI reporting would ensure that
the business is in compliance with all
regulations in India and ready to operate.

Strategy
WHY SHOULD YOU DO THE FEASIBILITY
ANALYSIS BEFORE KICKING-OFF
A BUSINESS IDEA
WHY SHOULD YOU DO THE FEASIBILITY
ANALYSIS BEFORE KICKING-OFF
A BUSINESS IDEA
As well said, “ you don't want to invest your money, your time and your
effort on a project or business idea, which seems possible to fail or...
As well said, “ you don't want to invest your
money, your time and your effort on a project or
business idea, which seems possible to fail or not
to success”.
Let's look at Wikipedia definition: “A feasibility
study evaluates the project's potential for success;
therefore, perceived objectivity is an important
factor in the credibility of the study for potential
investors and lending institutions.”
What is a Feasibility Report?
The is an analysis or study orfeasibility report
new business or product idea and covers the
discussions, analysis, and study of the different
aspects ( almost every aspect ) of the feasibility
of a START-UP businesses.
A visibility report focus on the various aspects
of the survivability of the start-up business
such as product feasibility, financial feasibility,
Market feasibility, Plant/Machinery feasibility,
Manpower feasibility, location feasibility etc
Know the feasibility of your new Business or Product Idea, Talk with the Expert

Strategy
The three amazing benefits of having feasibility
study or analysis:
1.Specific .
Being focused and specific a feasibility study or
analysis starts with a single question — asking
whether the idea, event or action is a viable
solution — and force you to focus solely on that
question to the exclusion of everything else, drilling
down to explore possible outcomes.
A feasibility analysis is different than the
business plan. A feasibility study is an investigative
tool that might cause you to discount an idea,
whereas a business plan is a call to action.
Generally, feasibility analysis is used as a
predecessor to creating a business plan.
2.The Big Picture
Feasibility study or analysis force you consider
the big picture first and then think of a top-down
approach. In this way, one or two general starter
questions lead to a host of additional, more
detailed questions that become increasingly
narrower in focus as you get closer to reaching an
ultimate answer. For example, asking whether
anyone will buy your new-and-improved product
and whether it will generate a profit creates
additional questions that force you to consider
customer need and possible competition, and to
identify risks that you may face.
You must also describe the followings:-
–Your product and its benefits,
– Your target market, and
– Cost along with break-even and profit
points.
3.Alternative Solutions
Feasibility study or analysis offer you the
chance to “get it right” before committing time,
money and business resources to an idea that
may not work in the way you originally planned,
causing you to invest even more in correcting
flaws, removing limitations, and then simply try
again. Feasibility studies may also open your
eyes to new possibilities, opportunities, and
solutions you might never have otherwise
considered. There are no right or wrong answers
to the questions you ask, but an answer you
don't necessarily want or expect can create new
profit potential.
Here is how Venture Care Team analyze the
feasibility of a new business idea
The Usability and inclusion of a feasibility
report:
Feasibility studies do not dive into, in-depth
long-term financial projections. In basic terms,
investor or start-up owner should have a
foresight if he will make or lose money during
this project. The investor decides to proceed or
not, considering the outcomes of the feasibility
study.
Accordingly, a successful feasibility study
should do a basic break-even analysis to see
how much money would be necessary to meet
the operating expenses of the business idea.

Strategy
So, there are two main elements to take into
consideration:
1. Cost = Money + Time + Effort
2. Value expected to be delivered by business
idea
That being said, a feasibility study dives into
four major areas:
1. Market Analysis
2. Organizational Setup
3. Technical Issues
4. Financial Analysis
As the first step of a feasibility study, the market
analysis should be done in order to have an idea
about supply & demand balance of your product or
service.
Market Analysis:
Units to be Sold: How many units do you project
to sell each month?
What is the projected supplySupply Projection:
in your area of the products or services needed
for your project?
Identification of Target Market and Target
Customer: What are your target market and
target customer? How many are they, your
potential customers?
What competition exists inCompetition Analysis:
this market? Can you establish a market niche
which will enable you to compete effectively
with others providing this product or service?
Is the location of your proposedLocation:
business or project likely to affect its success? If
so, is the identified site the most appropriate
one available?
Organizational Setup:
As the next step to market analysis, right
organizational structure and organizational
qualifications to manage the business should be
determined. People to be on board, in
management and other positions should be
carefully thought and assigned. In this step, in
order to illustrate your organizational structure
on an org chart, as a quick and simple solution,
use an.
Technical Issues:
Depending on the nature of your business idea,
technology and equipment may become one of
the biggest cost element. So you need to decide
on technology and equipment needed. On the
other hand, you should consider the date when
you will obtain those since they will directly
affect your start-up timeline.
Financial Analysis:
As a final step, you should analyze ke
financial parameters as following:
Variable Costs: These are the costs incurred in
starting up a new business, including COGS
Here you will define Opex and CapexFixed Costs:
Logistics & Inventory
Sales Projections and Target Realization
Reporting: This is your monthly sales amount
projection.
You should define how much ofSales Channels:
sales will be distributed on which channel and
sell out prices for each channel
Considering competition, the mostPricing:
appropriate price positioning for your product or
service should be determined.
This is forProfit and Loss Statement Report:
finding the break even point for the proposed
business, considering the costs and revenue
generated
As a conclusion, your feasibility study should
give a clear idea whether your business idea
deserves investment or not. If you want to
ease your feasibility study process, using
ready-to-use Feasibility Study Kit for
Start-ups which include all above will be a
smart solution for you.

Comprehensive
Business Care
Why Choose our Comprehensive Business Care
Venture-Care brings to you Specialized Business Care providing complete accounting, audit,
taxation, registrations and annual compliance services. These packages are much more
affordable compared to the cost of individual services and the best part is that they provide
you peace of mind while running a business.
You don't have to worry about “what to do when”. A team of expert CA and CS lead by our
senior associate will always be available to handle your assignment, collect documents,
punch your accounting entries, contact you for every compliance, generate reports for
decision making and assist you in every matter.
Why Choose our Comprehensive Business Care
COMPREHENSIVE SERVICES
AFFORDABLE PRICING
ACCURACY
VALUE ADDED SERVICES
REAL TIME ASSISTANCE
PROFESSIONAL APPROACH
let us help your organization stay compliant and avoid heavy penalties,
Talk with our Expert call : 020 65363633
Talk with our Expert call : 020 65363633
Helping your business to stay compliant.
Single package to make your company GET SET GOING
www.venture-care.com/comprehensive-business-care

A single window for all the essentials
to start a successful /Business Strartup.
Business Model Development
Company Registration
Logo Designing
Trademark Registration
E-office
Our wide spectrum of services ensures a comprehensive package to service all
your need to start your business including Business Model designing,
company registration, Logo Designing, Trademark Registration along with
financial and legal services.
Talk with our account manager call : 020 65363633
VC SmartVC Smart StartStart
Make your “Business Dream” a “Reality”
See More
www.venture-care.com/smart-start

More Ideas for
Your Business
More Ideas for
Your Business
It’s not how many ideas you have.
It’s how many you make happen.
It’s your idea or venturecare’s,
We make it happen to Plan, Launch
Growand your business. See how
at www.venture-care.com
WHAT WE DO
Since 2010, We are helping businesses and
enterprises to Plan, start & Grow Business
and Close or Exit from a Business.
We at Venture Care generate ideas, spark
actions and quantify time-bound results
by providing tailored, practical and
affordable solutions.
Venture-Care is dedicated to turning good
ideas into measurable change and to guide
you to flourish your business aspirations.
Note:VentureCareisaBrandofS&FAdvisoryPrivateLimited.
Strategy | | |Finance Digital Legal
Branch oﬃce (Netherlands)
Venture Care
JonkerFransstraat 46, 3031 AV Rotterdam, (NL)
Phone: +31 614 575 275
Head Oﬃce (India)
Venture Care
Ajinkytara, Kalaniketan, Sur. No. 29,
Kalanagar Near Rajshri Shahu Bank.
Dhankawadi. Pune 43
Contact Us
www.venture-care.com ask@venture-care.com020 65363633
Our Solutions

17 Ajinkytara, Kalaniketan Society
s.no. 29, Kalanagar
Near Rajrshi Shahu & Janta Bank.
Dhankawadi Pune 43.
Head Office (India)
Venture Care
www.Venture-Care.com/Magazine
ask@venture-care.com
020 65363633
Branch office
(Netherlands)
Venture Care
JonkerFransstraat 46,
3031 AV Rotterdam, (NL)
Phone: +31 614 575 275
About Venture Care:-
Venture Care is India's 1st of its kind online Business Solution Company which
helps to Plan, Launch, Manage and Grow Businesses. Find More about us at
www.venture-care.com
WHAT WE DO
Since 2010, Venture Care (a S&F Advisory Brand) is helping businesses and
enterprises to Plan a Business, start a business, run a business, Grow a
Business and Close or Exit from a Business.
We at Venture Care generate ideas, spark actions and quantify time-bound
results by providing tailored, practical and affordable solutions for the growth
of your company. Venture-Care is dedicated to turning good ideas into
measurable change
Our team of Chartered Accountants, Business planner, Technocrats,
Strategist, Marketers, Senior Bankers, Company Secretaries, Tax Experts and
other professionals enables us to help and guide you to flourish your
business aspirations.

Corporate digest magazine august, 2017 by venture care

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