Income tax rules for NRIs under new income tax law in India are often confusing because they combine residential status tests, special provisions for foreign income and treaties with other countries. This guide explains key rules for non resident individuals with Indian income or assets.

Residential status and income tax rules for NRIs under new income tax law in India

The starting point is to determine whether you are a non resident for the relevant financial year. As explained in separate guides, residential status depends mainly on the number of days you stay in India during the year and over preceding years.

Once you are classified as non resident, income tax rules for NRIs under new income tax law in India typically provide that:

1. Only income that accrues or arises in India, is deemed to accrue or arise in India, or is received in India is taxable.

2. Foreign income that has no connection with India is usually not taxable, subject to anti avoidance rules and treaty provisions.

3. Special rates may apply to certain types of income such as interest, dividends, royalty and fees for technical services.

NRIs must also consider double taxation avoidance agreements entered into by India with their country of residence.

Common taxable incomes for NRIs

Important categories of income to review when applying income tax rules for NRIs under new income tax law in India include:

1. Income from house property in India, such as rent from a flat or commercial premises.

2. Capital gains from sale of shares, securities or immovable property situated in India.

3. Interest on NRO bank accounts, fixed deposits and certain bonds.

4. Dividends from Indian companies.

5. Income from business or profession controlled from India or set up in India.

For each category, the new act and rules may specify applicable tax rates, TDS requirements and exemptions.

TDS and compliance obligations for NRIs

Income tax rules for NRIs under new income tax law in India give significant importance to TDS.

Key points:

1. Tenants paying rent to an NRI landlord may have to deduct TDS at a specified rate and deposit it with the government.

2. Buyers of property from an NRI seller often have to deduct TDS on the sale consideration at rates that vary by type of capital gain.

3. Banks deduct TDS on interest on NRO accounts and deposits.

4. Portfolio investment income may be subject to TDS by brokers or custodians.

NRIs should monitor their Form 26AS and AIS on the income tax portal to ensure that TDS credits are properly reflected.

Return filing and disclosure requirements for NRIs

Income tax rules for NRIs under new income tax law in India usually require a return to be filed in India if:

1. The taxable income in India exceeds the basic exemption limit; or

2. The NRI wishes to claim a refund of excess TDS; or

3. The NRI wishes to claim treaty benefits or carry forward losses.

NRIs should:

1. Use the correct ITR form that covers non resident and foreign asset disclosures.

2. Disclose all Indian income, bank accounts and specified assets as required.

3. Maintain documentation for any treaty relief claimed, such as tax residency certificates.

Non filing may lead to notices, interest and penalties.

Practical planning tips for income tax rules for NRIs under new income tax law in India

Some basic planning points:

1. Track day counts to avoid unintended change in residential status.

2. Consider holding investments in appropriate forms (NRE, NRO, FCNR) after taking professional advice.

3. For property transactions, obtain a tax computation and lower TDS certificate if the standard TDS rate leads to excess deduction.

4. Coordinate with advisors in both India and the country of residence to optimise overall tax burden.

Income tax rules for NRIs under new income tax law in India are detailed and change frequently through notifications and circulars, so periodic review is essential.

Related and reference links

Related: residential status under new income tax law in India (link: /blog/new-income-tax-act-residential-status)

Related: TDS on sale of property by NRIs (link: /blog/tds-sale-property-nri-india)

Related: managing NRE, NRO and FCNR accounts for tax efficiency (link: /blog/nre-nro-fcnr-tax-planning)

Official resources:

• Income Tax Department portal: https://www.incometax.gov.in
• DTAA and international tax references in the Acts and Rules section of the portal.
• CBDT circulars and FAQs for NRIs under the notifications section.

Cred by Fastlegal: Generate Bank Ready Project Reports In Minutes

Access to bank finance is a big hurdle for small businesses, traders, professionals, and first time entrepreneurs in India. Even when the business idea is strong, the bank loan often gets delayed or rejected because the project report is incomplete, in the wrong format, or not aligned with the scheme requirements.

This is exactly the problem Cred by Fastlegal is built to solve.

Cred is a professional DPR generator designed for Indian government schemes such as Mukhyamantri Yuva Udyami Yojana, MUDRA, PMEGP, Stand Up India, PM Vishwakarma, CGTMSE and other MSME focused programmes. It has a Rajasthan first focus but is useful for entrepreneurs and consultants across India.

In this article, we explain what Cred is, who it is for, which schemes it supports, and how you can generate a bank ready project report in just a few minutes.

What is Cred by Fastlegal

Cred is an online project report and DPR generator that helps you create bank ready reports for government loan schemes without needing to build complex financial models in Excel.

Instead of spending 3 to 5 hours manually drafting schemes, projections, DSCR calculations and formatting, you can use Cred to:

• Select your scheme
• Enter basic details about the promoter and business
• Fill simple financial inputs
• Download a ready project report in Word, PDF or Excel

The reports generated by Cred follow the formats typically required by DIC offices, MSME departments and nationalized banks, especially in Rajasthan.

Designed for Indian government schemes

Cred supports project report generation for major central and state government credit schemes that small businesses and entrepreneurs actually use.

Key schemes currently supported include:

• Mukhyamantri Yuva Udyami Yojana (Rajasthan)
• Age 18 to 40
• Loan up to around Rs 1 crore
• Subsidy in the 15 to 25 percent range depending on category

• PM MUDRA Yojana
• Shishu, Kishor and Tarun categories
• Loan up to Rs 10 lakh
• Collateral free lending for micro and small businesses

• PMEGP (Prime Ministers Employment Generation Programme)
• Term loans up to around Rs 50 lakh
• Subsidy 25 to 35 percent routed through KVIC and DIC

• Stand Up India
• Focus on SC, ST and women entrepreneurs
• Loans roughly between Rs 10 lakh and Rs 1 crore

• PM Vishwakarma Yojana
• Traditional trades including carpenters, plumbers, artisans and others
• Skill training, concessional interest and credit support

• CGTMSE
• Credit guarantee cover for collateral free loans
• Up to around Rs 2 crore for eligible borrowers through participating banks

For each of these schemes, Cred is tuned to the typical project report expectations of banks and DIC offices, including section headings, financial ratios and presentation format.

Who should use Cred

Cred is useful for three main types of users.

1. Individual entrepreneurs and first time borrowers

If you are applying for a government backed loan for the first time, it is difficult to know how to draft the project report in a way that bankers understand. Cred gives you a guided way to build a report that speaks the language of banks.

2. Chartered accountants and tax professionals

CAs and consultants who prepare multiple project reports every month can save several hours per report. Instead of starting from a blank Word file and complex spreadsheets, you can use Cred templates and auto calculations to speed up your work.

3. Business consultants and DIC facing agents

If you routinely work with PMEGP, Mukhyamantri Yuva Udyami Yojana or similar schemes and interact with DIC or MSME departments, Cred gives you DIC format compliant reports so you can focus on clients rather than formatting.

Key features of Cred

Cred is more than just a template. It bundles intelligence, automation and compliance into one tool.

Important features include:

• Smart report drafts generated for business descriptions, market analysis and SWOT sections
• 11 step guided wizard covering scheme selection, promoter profile, business details, financial inputs and manpower planning
• Auto financial calculations for DSCR, break even point, internal rate of return, EMI schedule, 5 year projections and CMA style data
• Multi format export in Word (docx), PDF and Excel (xlsx)
• DIC and bank compliant structure aligned to requirements of DIC offices in Rajasthan and nationalized banks such as SBI, Bank of Baroda and Punjab National Bank
• Hindi and English support with bilingual labels and the option to generate reports in English or Hindi (Devanagari script)

How Cred works in 4 steps

Using Cred is designed to be simple for non technical users.

Step 1: Select your scheme

Choose your intended scheme such as Mukhyamantri Yuva Udyami Yojana, MUDRA, PMEGP, Stand Up India, PM Vishwakarma or CGTMSE. Also select business category and other basic classification details.

Step 2: Fill details

Enter promoter information such as age, qualifications and experience. Add business details including location, nature of business and proposed activity. Provide financial estimates such as project cost, working capital, expected revenue and expenses.

Step 3: Review your report

Cred generates a complete project report based on your inputs. You can review each section, edit descriptions, adjust assumptions and ensure everything is accurate.

Step 4: Download your report

Once you are satisfied, download the report in Word, PDF or Excel format and submit it to your bank, DIC office or MSME department.

The process can usually be completed in 20 to 30 minutes for a typical case, compared to several hours if done manually.

Pricing and plans

Cred offers simple and transparent pricing options which work for both one time users and regular practitioners.

• Free plan: Rs 0 per month with 1 report included
• Starter plan: Rs 499 per month with up to 5 reports every month
• Professional plan: Rs 1,499 per month with up to 20 reports every month
• Agency plan: Rs 3,999 per month with unlimited reports

For occasional use, you can also generate single reports at Rs 199 per report on a pay per use basis. For CA firms and consultants, white label options with your own branding start at around Rs 9,999 per year.

Why Cred works for Indian entrepreneurs

Cred is built around how Indian government financing actually works on the ground.

• Focus on government loan schemes that entrepreneurs and small businesses actively use
• Alignment with DIC and bank formats, particularly in Rajasthan
• Bilingual support so that reports are acceptable in both English and Hindi environments
• Built in financial calculations, so you do not have to create DSCR and projections from scratch
• Time savings for professionals who do high volume project report work

For someone applying for a loan under Mukhyamantri Yuva Udyami Yojana, MUDRA, PMEGP, Stand Up India, PM Vishwakarma or under a CGTMSE guarantee, a clean and structured project report can make a real difference to how smoothly the loan is processed.

Related: Project report for MUDRA loan in India (link to be added)

Related: PMEGP project report format for small businesses in India (link to be added)

Related: How to prepare DSCR and projections for MSME loans in India (link to be added)

Get started with Cred by Fastlegal

If you are planning to apply for a government backed loan or you regularly prepare DPRs for clients, Cred can help you reduce manual drafting work, improve the quality and consistency of your project reports and align your documentation with what banks and DIC offices expect.

You can get started here:

https://cred.fastlegal.in

Create your account, select your scheme and generate your first bank ready project report in minutes.

Many entrepreneurs with experience on project sites want to formalize their operations and set up a construction company in India. This guide walks through the legal structure options, mandatory registrations and practical steps so you can set up a construction company in India with fewer surprises.

Decide the right business structure for a construction company in India

Before you print visiting cards, choose a legal structure. Common options are:

1. Sole proprietorship

2. Partnership firm

3. Limited Liability Partnership (LLP)

4. Private limited company

For small local projects, proprietorship can work initially. However, because construction involves high risk, many founders eventually choose LLP or private limited company in India to limit personal liability and build trust with banks and clients.

Registrations needed to set up a construction company in India

When you set up a construction company in India you will likely need:

• GST registration if your annual turnover crosses the threshold or if you are working with GST registered clients.
• Professional tax registration in relevant states where applicable.
• Shops and Establishment registration for your office.
• EPF and ESIC registration if you cross employee limits.
• Labour welfare registrations depending on state.

Check state specific requirements on your local labour department website and GST registration rules on https://www.gst.gov.in.

GST treatment for construction companies in India

Construction companies often face confusion around GST rates and input tax credit. Practical points to remember when you set up a construction company in India:

• Review whether your projects are works contracts, pure services or a mix of goods and services.
• Different GST rates apply to affordable housing, commercial projects and government works.
• Maintain clear invoices and agreements that describe the scope of work and rate breakup.
• Keep track of input tax credit on raw materials, subcontractor bills and capital goods.

A good practice is to work with a tax professional who understands construction GST so you avoid future disputes and notices.

Key contracts every construction business in India should have

Legal paperwork becomes crucial once you start executing projects. At a minimum, you should have:

1. Detailed construction contract with clients: scope of work, milestones, payment terms, defect liability, dispute resolution.

2. Subcontractor agreements: quality standards, timelines, safety responsibilities, indemnities.

3. Vendor agreements for materials: pricing, delivery schedules, quality checks.

4. Employment or contractor agreements for engineers and site supervisors.

When you set up a construction company in India, standardizing these contracts reduces conflict and helps you enforce your rights if something goes wrong.

Licenses and registrations specific to construction

Depending on the scale and type of work, you may also need:

• Registration with Public Works Department (PWD) or other government bodies to bid for tenders.
• Building and safety approvals from local municipal authorities.
• Pollution control or environmental clearances for certain projects.
• Registration under Building and Other Construction Workers Welfare Cess rules.

Because these are often state specific, check the official websites of local authorities and PWD departments.

Compliance checklist for your first year

To operate smoothly after you set up a construction company in India, track:

• Timely GST return filing and payment.
• TDS deduction and deposit on contractor payments where applicable.
• Quarterly and annual income tax returns.
• Labour law compliance records and registers.
• Renewal dates for licenses and registrations.

Setting up a simple compliance calendar can prevent penalties and last minute panic.

Related: How to choose the right business structure in India for your new venture (link: /blog/choose-business-structure-india)

Related: Key clauses for construction contracts in India that protect contractors (link: /blog/construction-contract-clauses-india)

Related: GST for contractors and works contracts in India basics explained (link: /blog/gst-works-contracts-india)

Income tax rules for NRIs in India under new income tax law are crucial for non resident Indians and overseas citizens who have income or investments connected with India. This guide explains the key income tax rules for NRIs in India under new income tax law, including residential status, taxable income, TDS, filing of returns and practical compliance tips.

Who is an NRI under new income tax law

For income tax purposes, NRI is not a separate legal label in the Act, but a commonly used term for non resident individuals. To understand income tax rules for NRIs in India under new income tax law, we first need to determine residential status using day count tests and other conditions.

Broadly, a person is treated as non resident when the stay in India is below certain thresholds in the relevant year and additional conditions are not satisfied. Detailed conditions are given in the residential status provisions of the law. These conditions should be checked with the latest official text, especially for frequent flyers, seafarers and high income individuals.

Related: Residential status under new income tax law (link: /blog/residential-status-under-new-income-tax-law)

Scope of income taxable in India for NRIs

Once residential status is determined as non resident, income tax rules for NRIs in India under new income tax law generally provide that:

• Income that accrues or arises in India is taxable.
• Income that is received in India is taxable.
• Income that accrues or arises outside India and is received outside India is usually not taxable in India, subject to special deeming rules.

Common taxable incomes for NRIs include:

• Interest on NRO deposits
• Rental income from property situated in India
• Capital gains on sale of shares, securities and property in India
• Dividend income from Indian companies
• Fees for technical services or professional services rendered in India

External reference: Income Tax Dept FAQ on NRIs and taxation at www.incometax.gov.in

TDS and withholding on payments to NRIs

Income tax rules for NRIs in India under new income tax law generally require higher or specific TDS rates on payments to non residents. Payers should be careful because they are treated as persons responsible for deduction.

Practical points for payers:

• Verify residential status and collect self declaration where appropriate.
• Obtain PAN or consider higher TDS rates for non furnishing of PAN where applicable.
• Apply correct section and rate for interest, rent, capital gains and professional fees.
• Consider DTAA relief where the NRI provides a tax residency certificate and other documents.
• Deposit TDS within due dates and file TDS returns.

Practical points for NRIs:

• Track TDS deducted and reconcile with Form 26AS and AIS.
• Claim credit for TDS while filing Indian tax returns.
• Where excess TDS is deducted, file return to claim refund.

Related: TDS on payments to non residents (link: /blog/tds-on-payments-to-non-residents)

Double tax avoidance agreement (DTAA) relief for NRIs

Most NRIs are tax residents of another country. Income tax rules for NRIs in India under new income tax law allow them to claim relief from double taxation using DTAA provisions.

Key steps:

1. Determine residential status in the other country under its domestic laws.

2. Refer to the relevant DTAA between India and that country.

3. Check tie breaker rules if both India and the other country treat the individual as resident.

4. Apply specific article for interest, dividend, capital gains or salary income.

5. Claim lower TDS rates or exemption where DTAA permits.

6. Maintain documentation such as tax residency certificate, Form 10F and self declaration.

External reference: DTAA texts and CBDT notifications available on www.incometaxindia.gov.in

Filing income tax returns in India for NRIs

Income tax rules for NRIs in India under new income tax law require filing of return when:

• Total income in India exceeds the basic exemption limit, or
• Certain specified conditions are met, such as high value deposits or spending, even if income is below limit, or
• Refund is to be claimed for excess TDS.

Practical return filing steps for NRIs:

1. Obtain PAN and register on the e filing portal if not already registered.

2. Collect bank statements, broker statements and property documents relating to Indian income.

3. Reconcile TDS with Form 26AS and AIS.

4. Compute capital gains correctly, including indexation where permitted.

5. Consider DTAA relief and foreign tax credit.

6. Choose correct ITR form for NRIs.

7. E verify return within the prescribed time.

Related: Checklist for NRIs filing income tax returns in India (link: /blog/checklist-nri-income-tax-return-india)

Practical compliance tips for NRIs under new income tax law

To manage income tax rules for NRIs in India under new income tax law smoothly, consider the following practical tips:

• Maintain a travel log with dates of arrival and departure from India.
• Consolidate Indian investments across banks and brokers where possible.
• Use NRO and NRE accounts properly as per RBI and tax rules.
• Keep copies of all TDS certificates and important tax documents.
• Appoint an authorised representative in India where regular interaction with tax authorities is expected.
• Use secure digital channels for e filing and communication.

By understanding income tax rules for NRIs in India under new income tax law and planning residential status, investments and documentation carefully, NRIs can minimise tax leakage and avoid disputes.

Related posts on FastLegal:

• Related: Tax planning for NRIs with property in India (link: /blog/tax-planning-nris-property-india)
• Related: Capital gains tax in India for NRIs (link: /blog/capital-gains-tax-india-nris)
• Related: Managing NRO and NRE accounts for tax efficiency (link: /blog/managing-nro-nre-accounts-tax-efficiency)

GST registration for service businesses in India is a common requirement for consultants, agencies, freelancers and IT companies that cross the turnover threshold or work with registered clients. This guide explains when GST registration is required, how to apply online, and practical tips for service providers.

When is GST registration for service businesses in India mandatory

You must obtain GST registration for service businesses in India if:

• Your aggregate turnover exceeds the prescribed threshold in a financial year
• You make inter state taxable supplies in certain cases
• You want to pass on input tax credit to your clients
• You provide services on e commerce platforms where specific rules apply

Even below threshold, many corporate and government clients prefer vendors with GST registration because it lets them claim input tax credit.

Related: GST basics for small businesses in India (link: /blog/gst-basics-small-business-india)

Documents required for GST registration for service businesses in India

Before you start the application on the GST portal, keep these documents ready:

• PAN of the proprietor, partner or company
• Aadhaar of the applicant
• Photograph of the proprietor or authorised signatory
• Constitution documents such as partnership deed, LLP agreement or certificate of incorporation
• Proof of principal place of business like electricity bill, rent agreement or property tax receipt
• Bank account details and cancelled cheque

Make sure names and addresses match across documents to avoid delays during GST registration for service businesses in India.

Online process for GST registration for service businesses in India

Follow these steps on the GST portal at https://www.gst.gov.in:

1. Click “Register Now” under the “Taxpayers (Normal)” tab.

2. Select “New Registration” and enter basic details.

3. Validate your email and mobile number with OTP.

4. Note the Temporary Reference Number (TRN) generated.

5. Log in using TRN and complete Part B of the application.

6. Upload required documents in the correct format and size.

7. Submit the application with digital signature or EVC.

You can track the status of your GST registration for service businesses in India from the portal using the ARN number.

Practical tips for service providers during GST registration

Service businesses in India should pay attention to these points while registering under GST:

• Correctly choose the service classification (SAC code) that best describes your main services
• Mention all additional places of business if you operate from multiple locations
• Ensure authorised signatory details are accurate and linked to valid PAN and Aadhaar
• Avoid last minute rush near the turnover threshold

Once you receive the GSTIN, display it at your place of business and include it on all invoices.

After GST registration for service businesses in India: compliance overview

After registration, service providers must:

• Issue tax invoices with all mandatory fields
• Charge GST at correct rates on taxable services
• File periodic GST returns on time
• Maintain records of invoices, input tax credit and payments

Missing return due dates can lead to late fees, interest and blockage of input tax credit.

Related: Monthly GST compliance checklist for Indian service providers (link: /blog/gst-compliance-checklist-service-business-india)

By planning ahead and keeping documents ready, GST registration for service businesses in India can be completed smoothly and you can focus on growing your client base with better tax compliance.

Tax planning for salary and dividend income in India is an important topic for promoters and directors of closely held companies. This guide explains how small company owners in India can structure their withdrawal mix, what limits to watch, and common mistakes to avoid.

Who needs tax planning for salary and dividend income in India

You should think about tax planning for salary and dividend income in India if:

• You are a director or promoter of a private limited company or LLP
• You draw a regular salary from your company
• You also receive dividends or profit share
• You want to optimise your total tax outflow while staying compliant

Related: Remuneration to directors in private limited companies in India (link: /blog/director-remuneration-private-limited-india)

Understanding salary versus dividend in India

Salary is taxed under the head “Income from Salaries” in India and is subject to TDS, provident fund and other labour law compliances. Dividend from domestic companies is taxed in the hands of shareholders at slab rates, but without employer side labour costs.

Key differences:

• Salary is a deductible expense for the company if it is reasonable and backed by board approvals
• Dividend is paid out of post tax profits and is not deductible for the company
• Salary attracts TDS and possible PF, ESIC depending on salary level and workforce size
• Dividend does not attract PF or ESIC, but still has to comply with Companies Act rules

A balanced mix can help with overall tax planning for salary and dividend income in India.

Reasonableness of salary and compliance requirements

When planning salary in India for promoter directors:

• Ensure that salary is proportionate to role, turnover and profits
• Get proper board resolution and shareholders approval where required
• Deduct and deposit TDS every month
• Issue salary slips and file TDS returns on time

Unreasonably low salary may draw scrutiny under transfer pricing in certain cases, while excessively high salary without justification can be questioned in assessments.

Dividend distribution and company law considerations

For dividend in India, companies must follow the Companies Act and their Articles of Association.

Practical steps:

• Verify availability of distributable profits as per books
• Ensure that all previous losses and depreciation have been adjusted as required
• Pass board resolutions and follow procedure for declaration and payment of dividend
• Pay dividend within the prescribed time and comply with TDS rules where applicable

Check updated provisions and circulars on https://www.incometax.gov.in and the MCA portal at https://www.mca.gov.in.

Tax planning examples for small company owners in India

Tax planning for salary and dividend income in India is highly fact specific, but some patterns are common:

Example 1: Promoter actively managing business

• Moderate fixed salary with basic allowances
• Performance linked bonus if profits permit
• Limited dividend payout to avoid over concentration of income in dividend

Example 2: Promoter partly active, partly investor

• Lower regular salary
• Higher dividend payout from stable profits

In both cases, the goal is to optimise total tax outgo without triggering aggressive tax positions.

Related: Difference between directors remuneration and dividend in India (link: /blog/directors-remuneration-vs-dividend-india)

Common mistakes in tax planning for salary and dividend income in India

Avoid these mistakes:

• Paying only dividend and no reasonable salary where promoter is full time working director
• Paying salary without proper documentation or board resolutions
• Ignoring TDS obligations on salary and certain types of director payments
• Delaying deposit of TDS leading to interest and penalties
• Distributing dividend without checking for accumulated losses or compliance with company law

Proper tax planning for salary and dividend income in India should be aligned with business cash flows, long term growth plans and risk appetite, not only immediate tax savings.

A well drafted founders agreement in India sets clear expectations between co founders and reduces disputes later. This guide explains why a founders agreement in India is important, what clauses it should contain, and practical tips for early stage startups.

Why you need a founders agreement in India

Many startups begin with verbal understandings or informal emails. As the company grows, lack of a written founders agreement in India can lead to serious conflict about ownership, roles and decision making.

A written founders agreement helps you:

• Document shareholding and contribution of each founder
• Allocate roles and responsibilities
• Decide how decisions will be taken
• Plan for exits, disputes and deadlock situations

Related: Checklist before incorporating a startup company in India (link: /blog/startup-incorporation-checklist-india)

Basic structure of a founders agreement in India

A typical founders agreement in India should at least cover:

• Parties: Details of each founder with address and identification
• Purpose: Brief description of the startup idea and proposed business
• Equity: Shareholding pattern, sweat equity and future ESOPs
• Roles: Who will handle tech, sales, finance, operations and HR

You can sign the founders agreement before or soon after company incorporation. It should be consistent with the company charter documents.

Equity, vesting and cliff

Fair equity allocation is the heart of a founders agreement in India.

Points to cover:

• Initial shareholding of each founder
• Vesting schedule for shares based on continued involvement
• Cliff period before any shares vest
• Treatment of unvested shares if a founder leaves early

Example: 25 percent equity each for four founders, with four year vesting and one year cliff. If a founder leaves within one year, no shares vest. If leaving after two years, only half the equity vests.

Vesting protects the startup from a situation where a non contributing founder holds a large stake.

Roles, duties and time commitment

A strong founders agreement in India should be clear about what each founder is expected to do.

Cover points like:

• Full time vs part time commitment
• Specific functional responsibilities
• Requirement to avoid conflicts of interest
• Non compete and non solicitation for a reasonable period

Documenting these expectations reduces misunderstandings and helps during performance reviews.

Decision making, board and reserved matters

Founders should agree on how key decisions will be made.

Include:

• Composition of the board of directors
• Matters that require unanimous consent of founders
• Voting rights and quorum for board and shareholder meetings
• Approval process for big expenses, fund raising and hiring senior roles

A clear decision making framework in your founders agreement in India reduces deadlocks and ensures smoother execution.

Exit, transfer of shares and dispute resolution

Your founders agreement should explain what happens when a founder wants to leave or sell shares.

Key clauses:

• Lock in period during which no founder can freely transfer shares
• Right of first refusal in favour of other founders or the company
• Drag along and tag along rights for future funding or sale
• Events of default and consequences
• Method of valuation and buyout

Dispute resolution clauses typically provide for negotiation, mediation and arbitration with seat of arbitration in India.

Related: Shareholders agreement essentials for Indian startups (link: /blog/shareholders-agreement-essentials-india)

IP ownership and confidentiality

To protect the startup’s assets, a founders agreement in India must deal with intellectual property and confidential information.

Cover:

• Assignment of all IP created by founders to the company
• Use of company IP only for authorised business
• Confidentiality obligations during and after association

This also helps during due diligence by investors and acquirers.

Related: Simple NDA template pointers for Indian startups (link: /blog/nda-template-indian-startups)

A thoughtful founders agreement in India does not need to be extremely complex, but it must be clear, fair and consistent with your long term plans. Investing time in this document early often saves far more time, money and stress later.

Secretarial compliance software for companies and LLPs in India is usually discussed as something only professionals use. In reality, promoters, directors and finance heads also get direct benefits when their company secretary uses a proper software platform instead of scattered files.

This article explains how secretarial compliance software for companies and LLPs in India works in practice, and how CoSecAI (https://cosecoffice.com) can be used jointly by companies and their company secretaries to improve compliance, documentation and board processes.

Why companies and LLPs should care about secretarial compliance software

Many founders assume that once a company secretary or PCS is appointed, secretarial work is fully taken care of. In practice, the company still faces risks when systems are weak:

• Important filings like MGT 7, AOC 4, MSME and DPT 3 may be missed or delayed
• Board and shareholder minutes may not match actual decisions
• Statutory registers may be out of date when an investor or lender asks for them
• Different versions of key resolutions may exist in email attachments and folders
• There is no single dashboard that shows compliance status across group entities

Secretarial compliance software for companies and LLPs in India helps reduce these risks by creating a shared system of record for company data, documents and deadlines.

Related: Compliance hygiene for Indian businesses simple documentation habits that prevent future pain (link: /blog/compliance-hygiene-indian-businesses)

How CoSecAI works as secretarial compliance software for companies and LLPs

CoSecAI, at https://cosecoffice.com, is a company secretarial software and CS practice platform tailored for Indian Companies Act, 2013 compliance. While it is designed for practising Company Secretaries, it can also be used by in-house CS, compliance teams and directors.

Key ways CoSecAI functions as secretarial compliance software for companies and LLPs:

1. Central company and LLP database

• Add each company or LLP using CIN and basic details
• Maintain director, shareholder and capital structure data centrally

2. Compliance calendar with reminders

• Track AGM, annual filings and key event based filings
• Email reminders to promoters and finance teams before due dates

3. Document library and AI assisted drafting

• Generate 50 plus types of secretarial documents using AI and standard templates
• Cover common actions such as director changes, share issues and policy approvals

4. Digital statutory registers

• Maintain registers of members, directors, charges and other required registers digitally
• Export registers to Excel for audits, due diligence and internal reviews

5. Collaboration between company and company secretary

• External PCS can manage drafting and compliance inside CoSecAI
• Internal teams can log in to view status, download documents and add information

Related: Corporate governance for Indian private companies building a practical board (link: /blog/corporate-governance-indian-private-companies-practical-board)

Benefits of using CoSecAI jointly with your company secretary

When both the company and the PCS or in-house CS use secretarial compliance software for companies and LLPs in India, the benefits are shared.

Some practical advantages:

1. Better visibility for promoters and directors

• Dashboard shows upcoming AGMs, filings and pending actions
• Directors can see which resolutions have been prepared and which are pending

2. Less dependence on individuals

• Knowledge is stored in the system rather than in personal folders or email
• If there is a change in company secretary or internal staff, the company does not lose history

3. Faster response to investors and lenders

• When banks or investors ask for documents, registers and resolutions, they can be downloaded from CoSecAI
• No need to search through old email attachments

4. Stronger governance during growth or funding

• Secretarial documentation keeps pace with business decisions
• Board and shareholder decisions are properly recorded and traceable

Related: FEMA and corporate governance checklist for Indian startups (link: /blog/fema-corporate-governance-checklist-indian-startups)

How companies and LLPs can encourage their CS to use CoSecAI

Promoters and directors do not have to manage the day to day details of secretarial compliance. However, they can set expectations and create systems that make compliance stronger.

A simple approach:

1. Discuss secretarial compliance software for companies and LLPs in India with your PCS or in-house CS

2. Share the CoSecAI link https://cosecoffice.com and ask for a trial implementation for a few months

3. Agree on which entities will be managed on the platform and which documents will be generated there

4. Ask for a periodic report from CoSecAI showing pending and completed secretarial actions

For many companies, this is a low effort way to upgrade compliance systems without building their own software.

Related: Annual compliance checklist for Indian private limited company (link: /blog/annual-compliance-checklist-indian-private-limited-company)

Getting started with secretarial compliance software for companies and LLPs in India using CoSecAI

Companies and LLPs that want to adopt secretarial compliance software can take the following steps:

1. Identify all group entities that need secretarial support

2. Decide whether you will work primarily with an external PCS, an in-house CS or a mix

3. Visit https://cosecoffice.com and create an account for the practice or group

4. Add entities, directors and shareholding data into the system

5. Set up the compliance calendar and configure recurring reminders

6. Use CoSecAI to generate a few key documents such as AGM notices and board minutes

7. Over time, move more secretarial actions into the software until it becomes the default system of record

Secretarial compliance software for companies and LLPs in India is no longer optional for organisations that want to be due diligence ready and investor friendly. CoSecAI offers a practical path to get there without building internal tools from scratch.

Related: How to make your Indian company due diligence ready from a compliance perspective (link: /blog/due-diligence-ready-indian-company-compliance)

Company secretary practice software in India is becoming a necessity for practising Company Secretaries who handle dozens of companies and LLPs. Traditional tools like Word, Excel and email are not designed for multi client secretarial and compliance work. They make it difficult to standardise quality, control deadlines and scale a practice without adding more headcount.

This article explains how company secretary practice software in India can help PCS and CS firms, and why CoSecAI (https://cosecoffice.com) is built specifically for Indian secretarial practice workflows.

Why practising Company Secretaries struggle with manual tools

Most practising Company Secretaries start with a handful of clients. Over time, they add more companies and LLPs, more directors and more filings. Common pain points include:

• Spending 2 to 4 hours per document on manual drafting
• Maintaining separate Word templates for different clients and industries
• Tracking AGM, MGT 7, AOC 4 and other deadlines in personal calendars
• Maintaining MBP 1 and DIR 8 disclosures for the same DIN across 20 plus companies
• Handling frequent changes in share capital, right issues, private placements and buybacks
• Updating statutory registers manually and only before audits or due diligence
• Onboarding new clients slowly because data collection and register setup is manual

Company secretary practice software in India is meant to solve these problems so that PCS can focus on advisory work rather than clerical repetition.

Related: How to build better compliance systems for Indian businesses (link: /blog/compliance-systems-indian-businesses)

What CoSecAI offers as company secretary practice software in India

CoSecAI, at https://cosecoffice.com, is a company secretarial practice platform built after speaking to hundreds of PCS, solo practitioners and small firms. It focuses on three main outcomes: faster drafting, better compliance control and easier scaling of a CS practice.

Key features relevant to PCS and CS firms:

1. AI assisted drafting for 50 plus document types

• Directors reports, AGM notices, board resolutions, shareholder resolutions
• Right issue, private placement (PAS 4, PAS 5), dividend declarations
• Appointment, resignation and change of directors

2. Compliance calendar and reminders

• Track due dates for AGM, annual filings and event based filings
• Send reminder emails directly to clients and their finance teams

3. Multi client management

• Add dozens or hundreds of companies and LLPs with CIN and basic details
• View upcoming work across all clients in one dashboard

4. Centralised templates and statutory registers

• Maintain one set of templates for the whole firm
• Update statutory registers digitally and export to Excel when needed

5. Integrations that match how PCS actually work

• Import director data from MCA Excel files
• Telegram bot access to company data and document generation

This combination makes CoSecAI a practical option for PCS looking for company secretary practice software in India.

Related: FEMA compliance for Indian businesses practical roadmap for 2026 (link: /blog/fema-compliance-indian-businesses-roadmap)

How CoSecAI helps CS firms scale without losing control

Firm owners often reach a point where they cannot personally review every draft and register. At the same time, they do not want to compromise on quality. Company secretary practice software in India like CoSecAI supports scaling with control.

Some practical ways CoSecAI helps:

1. Standardising quality across team members

• Junior team members work from standard templates inside the software
• AI assisted drafts follow a consistent pattern that seniors can quickly review
• Reduces training time for new hires

2. Central calendar for the entire firm

• One compliance calendar showing filings and meetings across all clients
• Filters by partner, manager or client group
• Avoids situations where one client is accidentally missed because a team member is on leave

3. Better delegation and tracking

• Assign tasks to team members within the platform
• Track which documents are in drafting, review or final stages
• Use system logs to understand who worked on which document

4. Higher capacity without proportional headcount

• AI reduces drafting time per document
• Digital registers and standard workflows reduce rework
• Firm can take on more clients without immediately hiring additional staff

Related: ESOP documentation mistakes in Indian startups and how to fix them (link: /blog/esop-documentation-mistakes-indian-startups)

How CoSecAI supports company secretaries working with internal compliance teams

Many PCS and CS firms work closely with in-house compliance and finance teams of their client companies. Company secretary practice software in India can make that collaboration smoother.

With CoSecAI:

• Drafts are prepared on the platform and exported only when ready
• In-house teams receive clean, updated versions rather than conflicting Word files
• Data such as director details and shareholding is maintained centrally
• Registers and key resolutions can be shared quickly when lenders or investors ask for them

For company secretaries who work as retained advisors to multiple companies, this structure reduces the daily friction of chasing for data and clarifications.

Related: Corporate governance for Indian private companies building an effective board (link: /blog/corporate-governance-indian-private-companies-effective-board)

Getting started with company secretary practice software in India using CoSecAI

Practising Company Secretaries who want to move away from manual tools can use the following simple approach:

1. Visit https://cosecoffice.com and create an account for your practice

2. Add a small pilot group of 5 to 10 companies or LLPs

3. Import director and shareholder data from MCA Excel wherever available

4. Configure the compliance calendar for these clients

5. Start drafting routine documents such as AGM notices, board minutes and director appointment resolutions

6. Once the team is comfortable, gradually migrate more clients into CoSecAI

Within a few months, most PCS see that company secretary practice software in India becomes the backbone of their practice. CoSecAI helps them deliver higher quality work, keep deadlines under control and scale their practice without burning out.

Related: Annual compliance checklist for Indian private limited company (link: /blog/annual-compliance-checklist-indian-private-limited-company)

Company secretarial software in India is no longer only for large listed companies. Even private limited companies and LLPs now face complex secretarial and compliance work under the Companies Act, 2013. Many promoters still manage everything on email, Excel and scattered Word files. The result is missed deadlines, inconsistent documents and stress during every year end.

This guide explains why company secretarial software in India is becoming essential for companies and LLPs, and how CoSecAI (https://cosecoffice.com) can help boards, founders and in-house company secretaries manage secretarial and compliance work in a more reliable way.

Why company secretarial software in India matters for private companies and LLPs

For a typical Indian company or LLP, secretarial and compliance work includes:

• Maintaining registers of members, directors and charges
• Preparing board and shareholder meeting notices, agendas and minutes
• Filing annual returns and financial statements
• Recording share capital changes, rights issues and private placements
• Tracking director disclosures like MBP 1 and DIR 8
• Staying updated on Companies Act amendments and MCA filings

When this work is managed manually in Word and Excel, some common problems appear:

1. Templates are scattered across laptops and email threads

2. Different versions of the same resolution or notice are used by different people

3. Compliance dates are tracked in personal calendars instead of a central system

4. Statutory registers are updated late or only before an audit or due diligence

5. There is no quick way for management to see pending secretarial work across group entities

Company secretarial software in India is designed to fix these problems by bringing templates, registers, compliance tracking and approvals into a single system.

Related: Compliance hygiene for Indian businesses simple documentation habits that prevent future pain (link: /blog/compliance-hygiene-indian-businesses)

What is CoSecAI and how does it work for companies and LLPs

CoSecAI, available at https://cosecoffice.com, is company secretarial software and a CS practice platform built for Indian conditions. While it is designed primarily for practising Company Secretaries, it is equally useful for in-house secretarial and compliance teams in companies and LLPs.

Key points for companies and LLPs:

• Cloud based company secretarial software in India, accessible from browser
• Library of 50 plus commonly used board and shareholder documents
• AI assisted drafting that uses Companies Act, 2013 context to suggest language
• Compliance calendar to track important dates like AGM, MGT 7, AOC 4
• Digital statutory registers that can be exported to Excel whenever needed
• Support for multiple group companies and LLPs on one account

For many companies, the immediate benefit is that secretarial work moves from ad hoc Word files to a structured workflow where drafts, approvals and final versions are organised.

Related: Annual compliance checklist for Indian private limited company (link: /blog/annual-compliance-checklist-indian-private-limited-company)

How CoSecAI helps boards and promoters reduce compliance risk

Boards and promoters often depend fully on their company secretary or external PCS for secretarial compliance. CoSecAI does not replace the professional. Instead, it gives both management and the CS a clearer view of what is pending and what is completed.

Some practical examples of how company secretarial software in India like CoSecAI helps:

1. Compliance calendar and reminders

• All key forms and events such as AGM, MGT 7, AOC 4, MSME and DPT 3 can be tracked in one place
• Email reminders can be sent to management and finance teams for upcoming deadlines
• Promoters can log in and see status without waiting for manual updates

2. Better documentation for funding and due diligence

• Investors often ask for board and shareholder resolutions, registers and historical filings
• CoSecAI keeps resolutions and statutory registers in a central system, ready for export
• This reduces last minute scrambling when term sheets arrive

3. More consistent quality of minutes and resolutions

• Templates are standardised and updated centrally
• AI assisted drafting helps maintain consistent language across group entities
• Review effort is reduced for senior management and the CS

4. Clear separation between draft and final versions

• Draft documents stay in the system until approved
• Only final versions are exported for physical signing or e signing
• This avoids confusion over which version went to ROC or to the board

Related: Corporate governance for Indian private companies practical board basics (link: /blog/corporate-governance-indian-private-companies-basics)

Why CoSecAI is useful for in-house company secretaries

In-house company secretaries face a different set of challenges compared to practising CS. They usually handle:

• Multiple group entities, subsidiaries and LLPs
• Cross functional coordination with finance, HR and legal teams
• Frequent board and committee meetings
• Interactions with investors, lenders and regulators

Using company secretarial software in India like CoSecAI gives in-house CS teams:

1. One view of all entities

• Add each company or LLP with its CIN and basic details
• Track upcoming meetings, filings and actions for all entities on a single dashboard

2. Faster drafting of standard documents

• Use 50 plus existing templates for common actions such as appointment of directors, change of registered office, adoption of policies and issue of shares
• Generate first drafts quickly and then customise where needed

3. Better coordination with external PCS and CAs

• Share structured information and draft documents rather than forwarding scattered Word files
• Use system generated templates to reduce back and forth on formats

4. Easier audits and board reviews

• Keep statutory registers updated in the system
• Export required registers and resolutions for secretarial audit or internal review

Related: Good practices for Indian businesses building strong processes from day one (link: /blog/good-practices-indian-businesses-processes)

Getting started with company secretarial software in India using CoSecAI

Companies and LLPs that want to shift from manual secretarial work to a software based approach can follow a simple sequence:

1. Visit https://cosecoffice.com and sign up for an account

2. Add your first company or LLP using CIN and basic details

3. Import existing director and shareholder data from Excel if available

4. Set up the compliance calendar for the current year and add any custom reminders

5. Create and test a few sample documents such as board resolutions for routine matters

6. Gradually move recurring secretarial work such as annual filings and board meetings into CoSecAI

For many organisations, company secretarial software in India becomes the system of record for secretarial documents within a few months. It reduces risk for promoters and boards and makes life easier for in-house company secretaries.

Related: Compliance documentation for Indian businesses setting up a simple system that actually works (link: /blog/compliance-documentation-indian-businesses)