NBI Bank Accounts- Meaning & Types | Enterslice
NRI Bank Accounts
NRIs (Non-Resident Indians) managing income earned in India and abroad may benefit from having two different types of bank accounts in India, an NRE (Non-Resident External) account and an NRO (Non-Resident Ordinary) account. Both NRE and NRO accounts may be opened in the form of savings, current, recurring, or fixed deposit accounts, and depending on your banking needs, one or both may help you more easily manage foreign and Indian-earned incomes.
Whether you are a non-resident Indian (NRI) who is moving back to India or looking to invest in India, or you are a resident who has recently been granted NRI status, the first thing you need to do is have the right bank NRI Bank Account to manage your money
Unlike regular citizens of India, NRIs cannot have standard savings accounts in Indian banks. The determination of NRI status is not as per the popularly known Income-Tax Act, but FEMA (Foreign Exchange Management Act). FEMA uses intent as the basis to determine residential status. So, once you have moved residence (and child’s school) across the shores, this clearly denotes intention, and hence your residential status changes.
NRI Account Meaning:
An NRI Account refers to the accounts opened by a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) with a bank or financial institution which is authorised by the Reserve Bank of India (RBI), to provide various services.
Here are the types of NRI Accounts that you can opt for, to meet your financial requirements.
- Non-Resident External (NRE) Accounts
- Non- Resident Ordinary (NRO) Accounts
- Foreign Currency Non-Resident (FCNR) Accounts
Our Recommendation: Guide to the Types of NRI Bank Accounts in India
The Role of Due Diligence of NBFC for Sale
NBFC or Non-Banking Financial Company is a financial entity registered under Section 45-I of Reserve Bank of India Act. It is a perfect alternate of traditional lending institution servings various businesses, like micro and small-sized industries, for deploying funds. Catering the needs of weaker sections of the economy, the NBFC License plays a significant part in restoring the financial position of India. When one considers the sale or purchase of an NBFC, it becomes utmost essential to assess its commercial potential. Due diligence of NBFC for sale is an extensive procedure. This blog will enlighten you about the entire subject of NBFC for sale.
Due Diligence of NBFC
Due Diligence of NBFC means the appraisal of the business, especially to establish its assets and liabilities and evaluate its commercial potential. Further Due Diligence can be defined as the comprehensive appraisal of a business undertaken by a prospective buyer.
Types of Due Diligence of NBFC
Any buyer who intends to purchase an NBFC shall undertake a comprehensive assessment of the same in the form of due diligence. A buyer executes four types of due diligence of NBFC, namely:
- Legal Due Diligence: The legal due diligence refers to the scrutiny of a company on a legal basis. Further, it implies to the inspection of the NBFC transactions, including property, contracts, impending litigation, loans, and employment under the legal structure.
- Commercial Due Diligence: Before setting up a new company or business, one needs to comprehend its market value. Therefore, while taking hold of an NBFC for sale, the buyer must carefully analyze its business market. The commercial due diligence is a broad term that covers the reviewal of strategies, competitors, business plan, expected sales, relationship with customers, business popularity, and so forth.
- Financial Due Diligence: As the name suggests, this due diligence is all about finances. It entails an examination of the financial information of an NBFC. The financial due diligence comprises of information relates to the assets, liabilities, cash flow, debts, capital, management, etc.
- Other Due Diligence: The other due diligence is as important as legal, financial and commercial due diligence. It encompasses a quick assessment of various parts of an NBFC such as Intellectual Property, Taxation, Organizational Structure, Information Technology System, communication channels, hierarchy system of management, etc.
Collection of Information
The most required and question matter in terms of the Due Diligence process is information, the source of information, reliability, and accuracy. Hence Information of Target Company is most to gather and acquired in a systematic way to find the required compliance to mark in order to possess informed decision regarding any substantial decision regarding any entity of which due diligence is done. More or less information regarding entity can be accessed from Business News, Market Data, and Company Financial, directors of Company as well as an employee of the company too.
Company Registration Online – Types of Business Structures in India
Online Company Registration
Picking the right company structure for your business is as important as any other business-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register themselves as part of the mandatory legal compliance. Before we learn how to register company in India, let’s try and understand the types of business structures in India.a
What are the types of business structures in India?
Let’s try and understand the types of business structures available in India. Here is a list of some of them:
1. One Person Company (OPC)
Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.
2. Limited Liability Partnership (LLP)
A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution.
3. Private Limited Company (PLC)
A company in the eyes of the law is regarded as a separate legal entity from its founders It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.
4. Public Limited Company (PLC)
A PLC is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to shares they hold.
Aslo, read: Startup India Registration Process – The Complete Guide
Role of CFO for the companies | CFO Support Services
CFO support services helps the companies to manage their company finances including financial reporting, record keeping, and financial planning and risk management. Some companies books CFO (Chief Financial Officer) for the analysis of their company data. Enterslice provide such CFO support services to the companies, helping them in managing their company finances. In this article, we will discuss how these services are beneficial for the companies and how they can book a CFO for their company.
What is the role of CFO Support Services for the companies?
Role of CFO support services is very crucial for the profitability and operational excellence of the business. His chief role is to face the challenges and provide its support in the Finance function of the company. Here are the duties performed by Chief Financial Officer in the company:
- Evaluates the finance organization
- Reviews company’s business process and financial systems
- Reviews the existing financial reporting of the company
- Assists the company in designing and implementing new Business approaches
- Automation of Financial reporting
- ERP Implementation
- Adds value in the business process with his increased knowledge
- Reviews the internal controls and ongoing procedures in the company
- Review the reconciliation processes and controls
Also, read: What Are The Things A Modern Day Chief Financial Officer (CFO) Operate In A Company?
Company Registration in India, Types & Benefits | Enterslice
Picking the right company structure for your business is as important as any other business-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register themselves as part of the mandatory legal compliance. Before we learn how to register a company, let’s try and understand the types of business structures in India.
Types of Company structure
Private limited company
A private limited company is a separate entity. The liability of the members of a Private Limited Company is limited to the number of shares individually owned by them and the shares of the company cannot be publically traded.
Section 8 Company
Section 8 Company is listed under Section 8 of the Companies Act, 2013. It has been authorized for expanding commerce, art, science, education, research, social welfare, religion, etc protection of the environment if any, or other income is used for advertising only the objects of the company and no profit is paid to its members. Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit objectives.
One Person Company (OPC)
OPC is a separate legal entity from its members, gives limited liability security to its shareholders, has a flow of business and is simple to incorporate. One person company is similar to the private limited company but it only needs 1 single person.
Limited Liability Partnership
In the LLP partnership, every partner holds limited liabilities. It, hence, can exhibit components of partnerships and corporations. In an LLP, each partner is not accountable or responsible for another partner’s misconduct or carelessness.
Nidhi Company Registration
A Nidhi Company is a kind of Non-Banking Financial Company (NBFC). It is determined to borrow and give money to its members. It implants the habit of savings among its members and acts on the principle of mutual profit.
BENEFITS OF COMPANY REGISTRATION / INCORPORATION
- Legal Identity/Recognition to the business
- Numerous Tax Benefits
- Get investment/ funding for your Business.
- Your Liability as an individual is limited
- Enhanced Brand Image and Improved Trust Factor
Why there is a need to register a company?
- Getting Loans on the name of the company to invest in a different company
- Separate legal entity is also there
- Liabilities of directors are limited, by which they will not liable personally for company affairs.
- Director of the Company can get tax benefits
- From the time of its establishment, the company has the power to take, hold and dispose of the property.
- To build goodwill of your brand
- You can reach globally with company body structure
- To establish a platform to deal with great industries, suppliers, vendors, and customers.
- The company can claim to others with its own or can be sued by anyone, without the personal interest of Entrepreneur
- You can distinguish yourself from others by entering into the corporate environment.
- You can designate money from the general public to invest in Company
How Enterslice can help you Incorporate a company?
What Are The Benefits Of Registering Nidhi Company In India?
What is. Nidhi Company?
The feature that differentiates Nidhi Company from other companies/NBFCs etc. is that Nidhi deals with deposits from and loans to its members (shareholders) only, and works for the mutual benefits of its members. Accordingly, certain exemptions have been provided to these companies in respect of annual compliances and taxation.
Nidhi Companies in India are formed, governed, and regulated by Section 406 of the new Indian Companies Act of 2013, the Companies (Nidhi Companies) Rules of 2014, and the Chapter XXVI of the Companies Rules, 2014.
The objective of incorporating a Nidhi Company is to encourage savings as well as frugality amongst its members. To fulfill this objective of cultivating the habit of saving and thrift amongst its members. Nidhi companies are allowed to take a deposit from and lend to the members only. In other words, the funds contributed to a Nidhi company come only from its members (shareholders) and are to be used only by the shareholders of the Nidhi Company.
The name “Nidhi” in Nidhi Company means “treasure” and it originates from the Hindi vocabulary.
What are the advantages of incorporating a company into a Nidhi Company?
There are various advantages which can be availed by registering as a Nidhi Company. These advantages can be summed up as follows:
- Legal existence: The registration of a company as a Nidhi Company makes it a separate entity. It enjoys separate legal existence as a registered Mutual Benefit Society. Being a separate entity from the members of the company, the company can acquire or dispose of assets in its own name.
- Limited liability: Depending on the amount invested or contributed by the members of the company, their liabilities will be limited. The members will be liable only for their share in the company. Personal liabilities of the members cannot be used to meet the company’s liabilities.
- Availability of funds: The members can borrow from the funds contributed by themselves at lower interest rates.
Procedure for Nidhi Company Registration
Though Nidhi Company Registration Process is simple, still, assistance from a professional is advised to complete the various complex forms, filing them and within time. Moreover, the government portals and language are a bit on the difficult side, too.
Step 1: Applying for DIN and DSC
First, the Directors of the Nidhi company are to apply for DIN (Director’s Identification Number) and DSC (Digital Signature Certificate). DIN is issued by the MCA and DSC is a digital signature used for all e-filing processes. This step can be skipped for the Director who already has DIN and DSC.
Step 2: Name Approval
Now, you need to choose and suggest 3 different names to MCA for your Nidhi Company. Out of these 3 names, only one will be accepted for your Company by MCA. The proposed names must be unique and not matching to the names of other already registered companies. As per Rule 8 of the Company Act. The approved name will remain valid for 20 days only.
Step 3: MoA & AoA
Association) and AoA (Articles of Association). These must mention the main objective of incorporating a Nidhi company as a charity. The MoA and AoA are to be filed to the ROC (Registrar of Companies) with the subscription statement.
Step 4: Certificate of Incorporation (CIN)
It takes between 15-25 days to form a Nidhi company and get the incorporation certificate. This certificate declares that a company has been created and it mentions the company identification number (CIN) as well.
Step 5: PAN, TAN and Bank Account
Lastly, you need to apply for PAN and TAN. The PAN and TAN are usually received within 7 working days. Later, you have to get a bank account opened by submitting the Certificate of Incorporation, MoA, AoA, and PAN to the bank.
Benefits of Working Capital Enhancement | Enterslice
Working Capital is the funds which are raised and used for carrying out day to day operations of the business enterprise. We offer technology-enabled Working capital Enhancement Services Solution that increases effectiveness and helps you in reducing costs.
Our solutions enable you to:
- We help to align your financial strategy with your broader institutional needs, which will allow you to manage your assets.
- Analyze appropriate and timely insights from institutes financial and operational systems
- Provide solutions to the financial processes to improve enrollment ratio, reduce expenditure and maximize profits.
Enterslice dedicated Financial experts are experienced and certified professionals with a unique ability to upgrade the standards of institutes in terms of monetary benefits.
What are the benefits of Working Capital Enhancement?
- Enhanced Business Information: Cash exchange process adoption lets both vendors and consumers evolve together. As a consequence, improving the working capital helps to generate additional market information that helps provide useful insights into their capability and operation. Increasing the working capital, therefore, allows generating additional market information that helps to see the useful insights into their capability and operation.
- Increased Goodwill and Performance: There is already a variety of re-emerging large corporations with the development environment that are developing strong relationships with their vendors and suppliers. Throughout today's post-financial crisis, companies which align working capital policies to new economic development environments that can profit and a strong supply and distribution chain that helps increase overall goodwill and efficiency.
- Heightened innovation and perceptions: Enterprises funded by adequate working capital have the ability to invest in a variety of areas such as strengthened customer relationships, production efficiency that will help optimize companies and provide an investment forum to introduce a proper working capital policy.
Our Recommendation: Manage Your Inventory Wisely to Reduce the Working Capital
