Overview To Private Company Formation & Accountants For IT Contractors

When a new business is being formed it has to different steps. Such as the phase of documentation, applying and having different certificates from the different bodies of the government. Such certificate includes No Objection Certificates (NOC) from Municipal Corporation, police, fire brigade and others.  It must be registered under the company’s act. The company which you want to set up is first set up logically on papers then only it can be set up physically at a certain location by means of constructing a building or taking office on rent. The private company can be small or a large. It may have few employee or many employees.

Once the company is set up, it starts its business and deals in financial activities. The accountant is the person who keeps record of all the financial activities by maintaining different types of cash books of financial activities. It has to pay different taxes to the government. For the payment of those taxes it will require a tax perpetrator. It can have another person known as the tax advisor. Tax advisor will advise to save taxes. As every company wants to pay less tax and increase the productivity. The advisor will help a lot to save the taxes. Private company formation will also require a skilled tax advisor and perpetrator. They will help the private company to increase productivity.

There can be different types of tax advisors for both your business and for individual. There is a lot of difference between them. Accountants for IT contractors are the one who will give advice to save different corporate taxes to you. They are totally different from the traditional accountant for IT contractors. There are certain taxes which are not known to them. Accountants for IT contractors will not only help in planning for the taxes but they will also help in the complete financial management of the private company. They will plan for the payment of quarterly or yearly taxes. For providing these services to your business they will charge some amount from you. You can pay either monthly or annually even. There are different agencies and firms who provide these services to private companies.

Commercial Lease Disputes

Whenever landlords and tenants enter into agreements for tenancy of commercial property it is imperative that that are well aware of their rights and responsibilities. In the absence of a clear understanding and willingness to abide by these terms there is every likelihood of disputes arising that may turn out to be prolonged, costly and disruptive to smooth business.

It is important to have a clear understanding of some of the most common issues of lease dispute:

Rent Reviews

Almost all long-term tenancy agreements provide for periodic rent reviews (five years being the most common), however surprisingly most agreements allow for an upward revision only and not take into account the increasingly common falling market scenarios of today. Tenants must also be aware that even though the review may not have been conducted at the specified interval, the effect could be backdated and have thus serious cash-flow implications.

It is best to approach a professional valuer prior to the review date to advise you on market trends so that you are prepared to negotiate with the landlord more realistically or even go more prepared into arbitration or litigation for a better defense.

Lease Renewals

Under the Landlord & Tenant Act 1954, leases can continue after their original expiry date and can be terminated by either party only after a statutory notice delivered a minimum of 6 months before. While the tenant has the right of renewal of the lease, he must approach the courts before the expiry of the statutory notice for the grant of renewal. It is thus imperative for the tenant to ensure that his rights to lease renewal are protected. To effectively face disputes arising from the terms of lease renewals the tenant is well-advised to seek the advice of professional valuers at least a year before the lease expiry so as to be well prepared ahead of lease termination.

Service Charges

Another common point of dispute, especially in large commercial properties is service charges. Tenants are advised to comprehend well the terms of the lease, enter into discussion with the landlord about the points of discomfort and seek professional legal advice to prevent complications at a later state. It may be helpful to refer to the code of practice and other information that has been prepared by the Royal Institution of Chartered Surveyors for a better understanding of the subject. While adoption of the code is not compulsory, none will dispute the intention of it attempting “to promote consistency, fairness, transparency and best practice”.

Dilapidations (repairs)

One of the most frequently arising points of commercial property lease disputes is the cost and responsibility of repairs. The situation is made more complicated by the fact that most tenants do not understand their obligations of keeping the property well-maintained and typically they are faced with a huge repair bill after the lease expiry and inspection by the landlord. It is important that tenants realize their obligations and the terms of the lease agreement and arrange for periodic inspections and repairs on the basis of professional surveys and photographic evidence of the state of the premises, especially at the time of lease expiration and key handover. Lessees should comply with the terms of the lease governing the repair and maintenance and have their actions recorded by professional surveyors to minimize disputes.

Registration Steps for a Private Limited Company

If you think that setting up your business is a harrowing experience then you must not be aware of the step-by-step approach. This approach, if followed could enable you to form a company of your own without much of a hassle. Let us then follow the approach and see what can be done in this regard. All is needed, is to know the rules and going through the legal process.

The Basic Requirements

Let us at first grab the basic requirements of what is required to set up a company:

• The primary requirement is that the number of directors should be at least two and also a minimum of two shareholders.
• It must also be remembered that the maximum number of shareholders can be fifty.
• By the rules of association share transfer is restricted.
• The public cannot be invited to subscribe any shares.
• Only members, directors and their relatives can invite for deposition.
• The number of compliance requirements is lower.

The Process Of Registration

First step - nowadays, companies can be registered via the internet. But still there is requirement for an appearance of a person for some of the procedures. It must also be remembered that the directors must possess their identification numbers and also their signature certificates.

The next step - this follows that of getting the name of the company registered among a choice of six names provided. It may take only about 2-3 days and depends upon the availability of the names.

After name approval – the name being approved the memorandum and articles of association are to be drafted.  The articles of association depict how the company will function internally while the memorandum will define the object clause as well as the authorized capital clause. This capital clause determines to what extent the base of ownership can be expanded by the issuance of shares.

Vetting – having formed out the memorandum and articles they are then sent to the registrar who will vet and work out any form of objections. If found okay they are then stamped and sent to the registrar.

The last stage – this is concerned with paying the registration fees that depends upon the company’s authorized capital. Having completed this step the company gets registered.

The Final Requirements

The final requirements after the formation of a company are:

• A permanent account number
• A company seal

The process of limited company formation does not take up much time and can be completed within a time span of about 30 days at the most. Most companies like computer contractors form in this way and there is not much of a hassle once the process is known and is followed correctly. A company after its formation can begin operations and start trading right away.