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How important is industry experience for young entrepreneurs in India?

It would depend a lot on what the main function of your business is. Although here are a few common ones that many start-ups don’t fully account for:

Business Promotion (especially taking out clients/potential clients to dinners)

Penalties levied by the Government (most start-ups, are incredibly hap-hazard when they get started off. Sometimes taxes get paid late, returns get filed late, etc. which can lead to substantial penalties.

Miscellaneous items (expenses will always pop out of nowhere when you aren’t prepared. Make a sufficiently big provision for the unexpected)

Inflation (always overestimate the rate of inflation in you plan. Things are getting more and more expensive by the minute. It’s better to be safe and account for a higher rate than hope things don’t get as expensive)

Know more:http://www.themisconsult.com/

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What are all the expenses that a startup should budget for?

This will be easier to answer if it’s broken up into different heads.

Legal/Statutory - Company formation - Trademarks, IP etc. - ESOPS, contractual tie-ups, etc - Filing with the required Government body

Accounting, Taxation & Finance - Outsourced Accountants (to will handle book-keeping, calculate your tax liablity, manage payroll, create MIS reports & set basic systems for your business) - Chartered Accountant (who will audit and sign your final accounting statement) - Payment of applicable taxes - Structuring inflow of money from investors

HR - Salaries - Recruitment agencies - Getting policy manuals created (leave, travel, reimbursement etc.) - Staff welfare - Training & development

Marketing - Taking existing/potential clients out (can become a very sizable one) - Attending/hosting events and conferences - Social media - Printing brochures, banners etc. - Adwords, if you want to advertise

IT - Purchasing PC’s, servers, hard disks etc. - Designing a website - Hosting the website - Payment gateway charges - Building mobile apps

Miscellaneous - Rent - Printing & stationary - Postage & courier - Overheads (electricity, water etc.)

Over and above these, there are bound to be some unexpected expenses that can’t be accounted for. It’s always good to have a separate head for unexpected expenses which should be budgeted to as much as 10% of the total of all the above expenses so you’re always ready and cash flow isn’t holding your start-up back. Know more: http://www.themisconsult.com/

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What are your biggest challenges as a small business owner in India?

Inability to juggle their core functions with other distracting but necessary activities such as Accounting, Taxation, Dealing with Government Authorities, etc. -Lack of funds. Many young companies fail because they can’t arrange funds to sustain business. -Lack of enough clients. You need to be able to get your product out there and get people to know and understand your product. -Inability to target the kind of clients you need to attract. -Lack of focus. The promoter needs to believe in his product, and be able to devote his time, interest and energy to it. Know more: http://www.themisconsult.com/

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Themis Consult: Detangling Your Financial Anomalies by Demystifying Business Gaps

As per the small business mentoring organization SCORE, 40 percent of small business owners invest around 80 hours and thousands of dollars annually, trying to achieve that financial singularity. Under such circumstances, the best option would be outsourcing the company’s financial & accounting functions to an industry expert who also bears familiarity with the company’s vision. Mumbai based Themis Consult is one such organization that is deploying technology to help entrepreneurs grow their business by handling their key financial operations through its innovative accounting model.

A well-upgraded substitute to the traditional accounting methods, it involves measuring and communicating the true progress of innovation through financial ratio analysis, cash flow analysis, and various other concepts, whilst helping companies increase productivity and eventually grow to financial success at the fraction of a conventional cost and time. “The idea is to foster critical thinking skills, interpret more using technology tools, reduce memorization, encourage analysis,and change the way data is interpreted,” asserts Mukul Karnani, Business Development Manager, Themis Consult. Offering insights into client’s operating, investing & financial activities, Themis provides month-on-month advisory on MIS reports to help clients identify process-related gaps & rectify them. Furthermore, the clients are facilitated with freelance Accountants, CAs and Senior Advisors backed with ‘Themis’ quality of deliverance and PAN India facility, which a traditional CA firm cannot ensure.

Offering insights into client’s operating, investing & financial activities, Themis provides month-on-month advisory on MIS reports to help clients identify process-related gaps & rectify them

A Novel Way of Accounting

Providing end-to-end professional accounting support for clients, Themis is highly adept in bookkeeping & preparation of annual unaudited financial statements that works like a charm when it comes to organizing complex accounting matters; thanks to the company’s three-layered team of accounting executive, chartered accountant and senior advisor that immediately gets cracking on clients’ dilemma. Though the recent events brought the tax filing under the limelight, it did not make the process any lesstedious. Themis once again comes to aid with its robust tax calculation and filing services, encompassing returns and planning.

Akin to a financial expert, the company’s virtual CFO sorts the clients financial processing by organizing process designing & documentation, support in the preparation & monitoring of annual business plan, finance functions & others. Its due diligence service provides peace of mind to both corporate & financial buyers, by analyzing & validating all the strategic assumptions while its diagnostic analysis offering performs a quick check on the client company, giving the promoters a true insight of their business. The highly sensitive nature of the client’s data is secured by adhering to NDA, deployment of original & licensed software and adequate encryption.

Owing to the knowledge it gained by working with over 450 clients akin to Pepperfry.com, Tata Projects, Haptik, Boku, Nykaa and several SMEs across eight cities, Themis understands clients’ requirement as well as limitations and has chalked out offline and online methodologies to serve them accordingly. Mukul explains, “We collect data of clients who lack space & money for accounting software and process it in our software like Tally, Red Apple, Libria, Quickbooks, Peach Tree, Xero and many more that prove to be economic and time efficient for the client, while enabling us to cater PAN India”. With unconventional ideas, this young organization is bringing a shift in the paradigm and hopes to help more entrepreneurs in years to come.

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Know your direct & indirect tax liability with Themis Consult.

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#ThemisDictionary

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What challenges do entrepreneurs face in India? How have some people overcome them?

The main and obvious challenge that would especially be relevant in India is Red-tapism and Bureaucracy.

Here are a couple of other challenges:

Inability to juggle their core functions with other distracting but  necessary activities such as Accounting, Taxation, Dealing with  Government Authorities, etc.

Lack of funds. Many young companies fail because they can't arrange funds to sustain business.

Lack of enough clients. You need to be able to get your product out there and get people to know and understand your product.

Inability to target the kind of clients you need to attract.

Lack of focus. The promoter needs to believe in his product, and be able to devote his time, interest and energy to it.

Know more about us : http://www.themisconsult.com/

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Startup Tips

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What does a CEO/COO of a startup with seed funding need to know about accounting?

What accounting firms can do for you: 1. Book-keeping 2. Calculate your taxes 3. Pay your taxes 4. Provide you with MIS reports 5. Set your business' systems and processes in place 6. Handle all accounting & taxation related issues such as: - Salary structuring and managing Payroll - Registering and acquiring for various Statutory requirements - Administrative accounting like invoice creation, cheque writing etc. Once you've raised funding of any sort it is even more important for you to be on top of your numbers. Here are a few Financial Metrics for Startups to live by: 1. Cash Flow Management - As a start up, you need to maintain a weekly or at least a monthly Cash flow statement. It's even more important than a P&L statement for startups. You need to incredibly aware of how much money in coming in and going out on a regular basis. 2. Break Even - If you're in the products line, you need to know the cost of your product and if you're into services, you need to know the cost per hour / per employee depending on your service. 3. Financial Runway - You need to be aware of how long your money is going to last. If you feel there's a possibility of a you running out quickly, it may be time to start looking for investors. 4. Ageing Analysis - You should have a simple and systematic view of your debtors and creditors. You should know who owes you money and how long they haven't paid you for. And of course, who's waiting for you to pay them and how long they've been waiting. Why are the above points are important: 1. The law requires it to be done 2. To minimise the amount of taxes that have to be paid (legally) 3. So you don't go to jail 4. All business', especially start-ups should have an understanding of where their business stands and how well/badly they're doing. 5. Minimise, if not remove the haphazardness that is bound to be prevalent in all start-ups 6. This is one of the most important points, it will let you FOCUS ON GROWING YOUR CORE BUSINESS while functions like accounting, which are important, but not essential are being handled by experienced people who know accounting and taxation.

If any questions contact us here: http://www.themisconsult.com/contact-us/

For accounting Services visit us here : http://www.themisconsult.com/

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How important is industry experience for young entrepreneurs in India?

An industry experience is good but not necessary. It allows one to understand the dynamics of a large organization, but on the flip side, I find that people working as an for a prolonged period of time tend to be more rigid in their outlook. Ultimately the best time to start a business is now, and work experience figures fairly low on the list of preconditions to becoming an entrepreneur.

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News of the Week

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Can HUF become a partner in LLP?

http://www.themisconsult.com/What is LLP?

A Limited Liability Partnership (LLP) is a contract or agreement made between the partners of a LLP to establish a fair relationship between them and to protect their investment for carrying on any such business. A Limited Liability Partnership (LLP) is like a body corporate, with a distinct legal entity separate from that of its partners. Any change in its partners, will not affect the existence, rights or liabilities of the limited liability partnership. Like a company, a limited liability partnership can do all the things an individual or a company can do. It can make contracts, sue or be sued, hold property in its name etc.

The Limited Liability Partnership form of business organization was introduced in India by way of Limited Liability Partnership Act, 2008 (LLP Act 2008) which came into effect by way of notification dated 31st March 2009.

Every LLP shall have at least two designated partners who are individuals and at least one of them shall be a resident in India.

Provided that in case of a LLP in which all the partners are body corporates or in which one or more partners are individuals and body corporate, at least two individuals who are partners of such LLP or nominee of such body corporate shall act as designated partners.

Now who can become a partner in a LLP?

An individual unless otherwise disqualified, A company incorporated under the Companies Act 1956 or Companies Act 2013 A LLP incorporated under LLP Act 2008 A LLP incorporated outside India A company incorporated outside India But can a HUF become a partner in LLP?

It has come to the notice of the Ministry that some Hindu Undivided Families (HUFs) / Kartas of such families are applying to become partner/ Designated partner (DP) in LLPs and as a result a question has arisen whether a ‘HUF’ or a karta of that HUF can become a partner in LLP. The matter has been examined in consultation with the Ministry of Law.

Who cannot become a partner in LLP?

An individual, if: - he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force; - he is an un-discharged insolvent; or - he has applied to be adjudicated as an insolvent and his application is pending.       A minor A HUF A Partnership Firm   An Association of Persons (AOP) or Body of Individuals (BOI) An Artificial Judicial Person A Corporate Sole A Co-operative Society registered under any law for the time being in force A body corporate which the Central Government may, by notification in the Official Gazette, specify in this behalf. As per the letter issued by Ministry  - General Circular No. 13/2013 dated 29-07-2013 & Circular No. 2/2016 dated 15-01-2016 after prolonged consultation with the Ministry of Law & Justice. The Ministry of Law & Justice has observed that the Hon’ble Supreme Court in the matter reported in (1998) 2 SCC p.49, Rashiklal & Company vs CIT has dealt with the issue and vide para 12 of the judgement have observed as under:

“as per Section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in a Limited Liability Partnership. A HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its karta cannot become partner or designated partner in LLP.”

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Themis works with Early stage companies, SME’s and International Companies entering India in handling key backend operations such as Accounting, Taxation, Compliances & Reporting. Our core value as a company is to help Entrepreneurs focus on growing their businesses by handling these key operations for them. We actually embed ourselves and act as a client’s team, making the need to hire or rely on expensive recruits redundant.

Our team comprises of certified and experienced Chartered Accountants and Accounting executives who have a very diverse experience handling over 450 clients with us, across multiple sectors ranging from e-commerce to manufacturing and trading.

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India Is Now Ready To Meet Global Standards

Dear Reader, In a bold step to tell the world that India is now ready to meet Global Standards, the FM has taken several measures like announcing that GST will be surely applicable from 1st April, 2016, Corporate Tax rates will be brought down by 5% over the next 4 years, no retrospective amendments and various changes in taxation of REITs, VCCs and AIFs. These along with other measures lays down the road map ahead although the proof of the pudding will lie in the implementation of the policies laid down. Strong measures to curb generation and concealment of black money has been initiated by a comprehensive law which will also take care of black money parked abroad. Retaining foreign assets would lead to action for seizure of equivalent assets in India, rigorous imprisonment for 10 years and penalty upto 300% with no option to approach Settlement Commission. Non-filing of return or filing of return with inadequate disclosures to be punished with rigorous imprisonment upto 7 years, undisclosed income from foreign assets to be taxed at maximum marginal rate, disclosure of foreign assets in the tax return even if there is no taxable income are some of the measures to curb black money and an indicator of the will of the Government to bring about a Swachh Bharat not only in the environment but also in the fiscal environment. The upward revision in Excise Duty and Service Tax are clearly a move to align the tax rates as a forerunner to the implementation of GST. Deferment of GAAR for 2 years, scrapping DTC, abolition of Wealth Tax are welcome features of this Budget. The Economic Survey places India in a sweet spot since the domestic demand is picking up, inflation is brought under control, crude oil prices have tapered down and the Rupee has also stabilized. The fiscal deficit is expected to be 3.9% in 2015-16 and drop to 3.6% in 2016-17 and 3% in 2017-18. With the projected GDP for the current year between 8 to 8.5%, the stage is set for a double-digit growth rate. A Gold monetisation scheme, to be introduced this year, will allow depositors to earn interest on their gold investments while keeping their holding in Gold intact and the issue of Sovereign Gold Bonds will provide a good option for those who want to invest in Gold. An indigenous gold coin carrying the Ashok Chakra will be developed to reduce the demand for coins minted outside India thereby providing the ability to recycle gold available in India. For the individual tax payer the threshold limit and the tax slabs and rates remain unchanged with an increase in deduction towards health insurance policy from Rs. 15,000 to Rs. 25,000, contribution to National Pension Scheme upto Rs. 50,000 for individuals, increase in deduction of transport allowance from Rs. 9,600 to Rs. 19,200. On the indirect tax front, Service Tax and Excise Duty have been increased to 14% and 12.50% respectively. The tax base in Service Tax has been further widened by realigning mega exemption, tweaking a few definitions and pruning the negative list. It is proposed to issue tax free bonds for infrastructure projects in rail, road and irrigation projects. We look forward to a Swachh Economy, THEMIS CONSULT

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