- May 23, 2015
- Posted by: Rayvat Accounting
- Category: Accounting
Ever since the East India Company was established in India, it has been a legal requirement for the firms to be incorporated. After the liberalization, many Indian companies started collaborating with other firms or started incorporating with various subsidiaries outside India. This is true even for the firms based in other countries, who could now open up branches in India.
Whatever the case might be, if the firm wants to conduct its Business Transactions In India, they have to incorporate the firm as per the companies act. The firm would also need to comply to all the standards and provisions that are mentioned in the act.
For foreign Company their operations How to Start a Business in India. but are also operating outside India, would need to follow all the rules of the home country as well as follow the sections 591 to 602 of the Indian Companies Act. There are basically two main types of companies that are functioning in multiple countries. The first kind of the companies is the firms that are incorporated outside idea, but now want to operate in India as well. The second kind of firms are those that are based in India, but now wish to take their business to other countries as well.
The companies Act 1956 was the first and the most important legislative document that was formed by the central government in order to regulate the formation, financing, managerial and all other aspects of the company formation and management. The act gives power to the company to inspect the books of accounts and order investigation in the company accounts if they find any violation in the act. Basically these investigations are done to ensure that all the firms are conducting their businesses as per the companies act, and that there has not been any unjust practice which harms the public interest. The act sees to it that nobody gets harmed by any wrongful deed of the company, be it internal stakeholders like shareholders, investors, financiers or outsider stakeholders which are creditors, customers, suppliers etc. Any probable misuse is investigated by the Central Bureau of Investigation.
Rayvat Offers the companies to apply for and maintain their accounts in a way that they can not only incorporate themselves in the company formation, but they can also furnish proper accounting and financial requirements every year.