Problems in OIC!

[Audio] Presentation on: " Business Forms & Registration" Delivered by: Shaikh jalaluddin Chartered Accountant Partner Sandhu & Co General Secretary: Sales Tax Bar Association Karachi.

[Audio] Nature of Venture and Registration. . . Nature of Venture and Registration.

[Audio] Forms Of Ventures According to the provision of The Companies Ordinance, 1984 following companies could be formed: COMPANIES: Private Limited. Public Limited. Public Quoted. Un-Quoted. Limited Company. Limited by Shares. Limited by Guarantee. Unlimited Company. Small Companies Introduced by Finance Ordinance, 2005.

[Audio] Forms of ventures (cont..)  Under Partnership Act, 1932 PARTNERSHIP FIRMS:  Registered Firm.  Un-registered Firm..

[Audio] Forms of ventures (cont..)  PROPRIETORSHIP CONCERN: Sole-Individual..

[Audio] Sole-proprietor Ship Concern:  This is a type of business entity, which is owned by one person being individual who is subject to risks and rewards of the business entity. He is the one who enjoys the benefits and sole liable for all business risks and obligations. They are not required to get their books audited. The income tax Ordinance has separate requirement of tax procedure for the individuals being proprietors. No formal registration is required to form sole proprietorship concern..

[Audio] Partnership Concern: This is another sort of business entity which is owned by two or more person carrying on the business activities. It is not mandatory that this association of person to be registered but it is highly recommended that such type of businesses should be registered with registrar of partnership under partnership Act, 1932. All these persons are liable for the risks and rewards of their business in accordance with their holding in the business. The minimum number of partner are two but in no case shall exceed twenty, this restriction does not apply to the professional firms, in other case penalty of Rs. 5,000/- will be imposed. They are not required to get their books audited. One of the disadvantages of the partnership concern is that on the retirement, resignation and death of the partner the firm stands dissolved..

[Audio] Company: The following is the hierarchy of the company: Company Private Single Member co Public Limited Company Unlimited Company Limited by Shares Limited by Guarantee.

[Audio] Private Limited Company: A Private Limited Company could be formed by any person subscribe for memorandum, this company can also be formed by one person in accordance with the provision of Companies Ordinance, 1984, that company would be called a single member company. Maximum members of a private limited company is 50..

[Audio] Public Limited Company: A public limited company may either be any one of the following:  Public Quoted/listed Company.  Public Unquoted/unlisted Company..

[Audio] Public Quoted/listed Company:  Public Quoted/listed Company is the company with having at least seven members and maximum as many as can have. Its stocks/ shares are quoted on at least one stock exchange in Pakistan. There are a few requirements which a listed company has to follow e.g. Code of Corporate Governance, circulation of quarterly, six monthly and annually accounts etc. All Public Limited Companies are required to get their financial statements audited by practicing Auditors..

[Audio] Public Unquoted/unlisted Company:  Public Unquoted/unlisted Company is the company which should at least have three members who have subscribe for memorandum of the company. Its share are not quoted and traded at any stock exchange in Pakistan..

[Audio] Small Companies:  The finance Ordinance, 2005 introduced the concept of the small companies. Accordingly, any company which is registered on or after July 1st, 2005 and whose paid-up capital is or less then Rs. 25 million and an annual turnover of about Rs. 250 million or less are to be considered as small companies provided they shall not made any split of their existing business. These companies will be taxed at corporate rate of 20%. These companies are not liable to pay any turn over tax if incur losses..

[Audio] Benefits Of Small Companies: Income Tax:  Corporate tax rate of 20 % will be applied.  No turnover tax would be paid if loss is incurred.  Deduction of withholding tax is not required..

[Audio] Other Areas Of Law That Might Concern A Venture:  Intellectual Property Rights  Copyrights  Patent  Trademarks  Taxation • Customs & Excise • Sales Tax • Income Tax.

[Audio] Check List  Legal Advise  Fulfilling Legal & Procedural Requirements  Safeguarding your interest  Keeping records/ accounts  Maintain quality standards  Establish good working relations.

[Audio] Be mindful of:  Contract Law  The law of tort and negligence  Labour Laws  Property Laws & Building Regulations  E-Commerce.

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