GJM & Co.

New Reclassification rules for MSME sector Starting July 1, 2020, Indian MSME sector will see over Six crore (60 Million) Micro, Small and Medium enterprises undergo a new reclassification, something that has been long awaited since the roll out of The Micro, Small and Medium Enterprises Development (MSMED) Act 2006. The new reclassification rules will drop the divide between enterprises in manufacturing and services sector and will pave way to a new composite formula of classification for such enterprises.   The Indian government believes the new definition of MSME units will strengthen them and enable growth.   The provision to exclude value of Exports turnover from the definition will boost the MSMEs to export higher without worrying about losing its MSME benefits.   This is anticipated to increase exports from India in times to come and enhance job creation.   The MSME sector is estimated to contribute almost 30% to India’s GDP and comprises almost...

Formation of a Foreign Subsidiary Company in India India today is one of the most paced economies in the world with bountiful of business opportunities terming it as one of the preferred investment destinations for Foreign nationals and companies.   While there are various ways of investing into India forming a foreign subsidiary is a preferred option given its easiness. In this article, we shall briefly explain what a foreign subsidiary company in India is, how it is formed and what the post formation requirements are. What is a foreign subsidiary company? A subsidiary company with its voting equity shares (i.e. greater than 50%) held and controlled by a foreign registered company, may also be termed as the parent company or the holding company.   The subsidiary so formed in India will be subject to the regulations of Indian Company laws as prevalent. How to form a Foreign Subsidiary in India? A.    Choice of Company type: As per t...

Outsourcing in COVID-19 Era – An Accountant’s Guide The COVID-19 contagion has toppled our worlds not just personally but professionally as well. A lot of US accounting firms are currently functioning as remote firms working virtually to steer their clients during this financial crisis due to the pandemic.   The situation has led to accounting firms getting swamped with work that is difficult to manage in the current scenario. As leaders of your own Accounting firms, you surely realise the heavy and varied workload you and your team is trying to overcome, ranging from year end accounting, bookkeeping, financial reporting, taxes and more.   While you adjust to the new normal of working from your house and supervising your teams remotely, it is becoming clear that functions such as accounting and bookkeeping, payroll, AR and AP etc., basically all those activities which are resource intensive are striving and warrant lot of your time, energies and money being invested...