Company Incorporations/Formations

Company formation/incorporation in India is a crucial and initial step in setting up a business. Right from conducting market research to understanding several taxes, it is not easy for an individual to handle it all.

Fellow Tax is your corporate buddy who takes care of all the financial matters and makes sure your business is running smoothly.

Before we dive into how Fellow Tax helps, let’s understand the different types of businesses and the tax associated with them.

In India, there are several types of business entities –

• Corporation: This entity has a corporate wall that separates it from the owners. It might be run by multiple people (termed as directors) or a single person. As compared to other business entities, the tax process in a corporation is tough.
• Sole Proprietorship:This business is managed and owned by a single trader. There is no particular difference between him and the business. The entire profit and loss are accrued by the owner, and the business enjoys tax exemption.
• Partnership: This entity is formed by two or more people or businesses who agree. They share the profits and losses. While the partnership doesn’t have to pay any taxes, it only has to file the information report with the government. The report declares how all the profits and losses are allocated among the business partners.
• Limited Liability Company: LLC is a highly flexible business entity in which members might or might not enjoy limited liability. This business might or might not have managers and can decide whether they want to be taxed as partners or a corporation. They might also be exempted from paying the tax, depending on the situation.

Now that you've understood all kinds of businesses incorporated in India, Fellow Tax takes off the pressure and deals with the tax liabilities.

Right from bookkeeping and accounting to complying with all the norms of the Income Tax Department, Fellow Tax stays by your side. You can also reach out to our team of experts and learn about various rules and regulations of the tax.