Doing Business in India: The New Companies Act 2013
Sannam S4 Webinar Series 2014
June 17, 2014
www.sannams4.com
@Sannam_S4
Sannam S4
The story so far…
2
New era for Corporate Law in India?
Political requirements
3
Initiatives of the previous Government (Congress led UPA)
Long drawn battle since 2004 to replace the archaic law
Constant dialogue with stakeholders for 10+ years
Focus on increasing the bar on governance through:
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Increased reporting;
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Higher auditor, director & management accountability;
-
CSR; and
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Investor protection
Expected initiatives of the new Government (BJP led NDA)
Reduction in forms and approval levels
Empowering government officials with decision-making
Ensuring smoother transition for Corporates into the new Act
Introducing the long-pending Company Law Tribunal
Old v/s new
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Companies Act, 2013 (‘new
Act’)
29
Chapters
470
Sections
7
Schedules
Rules corresponding
to each chapter
13 Parts
(26 Chapters)
700+
Sections
15
Schedules
Rules/orders scattered over 60
years!
Companies Act, 1956 (‘old
Act’)
Impact for foreign companies in India
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
At least 1 ‘Resident Director’ on the board

Mandatory financial year

Women Directors for certain companies

Cross-border mergers and amalgamations

Board meetings through video conferencing

Auditor rotation for certain companies

Consolidation of accounts

Advance receipt of capital to commence business

Prohibition on multiple buy-backs within a year

CSR requirements for certain companies

Related party transactions

Reporting responsibilities

Board meetings

Forms and compliances
Burning issues
6

Grace period for appointing Resident Directors

Appointing a whole-time Company Secretary

Transition provisions for other matters

Form filing

Definition of foreign companies

Layered corporate structure

CSR under income tax

Dual regulations for the interim period

Increased formalities for company incorporation

Inter-company loans for real estate players

Definition of a listed company

Small companies merger
To do’s for you
7

Watch out for changes / amendments and enactment of remaining sections

Compliances through new forms, which are now on the government’s website

Ensure you’re not caught on the wrong side during the transition phase

Speak to experts about possible impacts on your existing business in India, if any, or potential concerns for
setting up a corporate subsidiary in India
Reach out for more information!
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Adrian Mutton
Chief Executive Officer
adrian.mutton@sannams4.com
Kapil Dua
CFO & Director, Financial Consulting
kapil.dua@sannams4.com
Abhinav Sood
Deputy Manager, Tax & Regulatory Consulting
abhinav.sood@sannams4.com
About Sannam S4
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
Sannam S4 is a specialist, single window service provider supporting the market entry and ongoing successful business
development of international organizations in India, Brazil and China

We provide end-to-end practical support to our clients, helping organizations identify market opportunities, develop news sales
leads and local partners, hire staff and build stable and efficiently run local operations.

By combining local technical expertise with practical advice, we deliver low risk and cost effective solutions enabling
organizations to succeed in the market

Our mix of international and domestic personnel have a long track record of establishing successful businesses in developing
countries. The team is comprised of dedicated local specialists, including accounting, tax, and inward investment advisors,
payroll, human resource advisory and recruitment experts, along with market research and validation consultants.

To date, Sannam S4 has supported more than 150 organizations with their India market entry plans. Our clients span across
different sectors and range from Fortune 500 companies to start-ups, universities, industry bodies, privately funded businesses
and VC backed tech companies.

Sannam S4 has the largest team of market entry experts for the Education sector in India, and has particular strengths in the
SME sector.
Our Client’s Journey @ Sannam S4
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Sannam S4 India: Financial Consulting Services
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Financial Consulting
Finance & Accounts
-
Payroll setup and management
Accounting management
Accounts receivable & payables
Financial reporting
IFRS conversions
Audit coordination
Foreign exchange compliances
Monthly / periodic direct and indirect tax
compliances
- Withholding tax compliances
Corporate Legal &
Secretarial
- Company incorporation
- Bank account setup
- Statutory registrations – PAN, TAN, DIN,
VAT / CST & service tax, professional tax,
shop & establishment, excise etc.
- Annual secretarial compliances
- Professional director services
- Registered office services
- Filings and liaison with Ministry of Corporate
Affairs
- Filings and liaison with Indian central bank
and their authorized dealers
- FRRO registrations
Tax & Regulatory
Consulting
-
Business Structuring & Market entry planning
Corporate tax planning
Moving expats into India
On-going financial, tax and regulatory advisory
Annual direct tax compliances
Transfer pricing advisory
Liaison with tax authorities
Audit coordination
Due-diligence & Health-checks (Financial, tax
and secretarial)
- M&A advisory (tax & regulatory)
Follow us: @sannam_s4
For upcoming Webinars: #sannams4webinar
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