Mumbai Investment：Compliance ｜ In the Indian compliance operation (above)

holiday.The central and state government stipulates that it takes 2 days a week, and most enterprises will take 1 day a week.After the employees work 240 days, they can get a paid annual leave for one day every 20 days.

Maternity leave.The duration of maternity leave for the first two children in women is 26 weeks; the third place in childbirth and the child's maternity leave is 12 weeks.

sick leave.Employees enjoy a basic disease leave of 15 days each year. The longer the working life of the employee, the more sick leave days they can enjoy, up to 40 days per year.Employees need to provide relevant certification materials to the employer when applying for long -term illness, such as a diagnostic form issued by the hospital.

In 2019, India promulgated the latest "Code on Wages Act" (2019), which replaces the original law. It stipulates that employers must pay their wages to employees in accordance with the minimum wage standards, and the central and state governments need to be regularly (not more than 5Nian) re -review and adjust the minimum wage standard.The new "Wage Law" includes the following points:

● Streamlined and clarified the definition of "salary" to reduce the possibility of disputes in the category of "wages" in the category of employment.

● The minimum wage standard is linked to the professional skills (divided into 3 gears) and hired place for employees.

● The central government is responsible for formulating the minimum wage standards nationwide, as well as the minimum wage standards in certain industries.The state government set the minimum wage standards in the region with reference to the central government's standards.

● Enterprises that violate the minimum wage standards will be punished by a fine of less than 3 months and a fine of no more than 100,000 rupees; they can also be fined separately.

Table 5-5 The minimum daily wage standard for the four major cities in India

Employeee PROVIDENT FUND.The fund is a pension plan formulated by the Indian government. Employees with a monthly salary of more than 15,000 rupees need to be forced to pay.If there are fewer than 20 employees, the payment ratio is 20%of the total basic salary and allowance of employees, and employers and employees shall bear 10%each. The employee pays the part of the monthly salary and deducts it directly from the salary, and the employer is paid to the designated account;With more than 20 people, the proportion of employers and employees is 12%.Companies who fail to withdraw and pay retirement funds in accordance with the standards may be punished for imprisonment and a fine of 5,000 rupees.

Employeees State Insurance Scheme.According to the labor insurance plan, when employees are sick, disabled, childbirth or death, enterprises should provide them with relevant guarantees.Enterprises with more than 10 employees (20 people in some areas) are required to participate in labor insurance plans.Employees participating in the plan and their monthly salary of more than 15,000 rupees must pay a certain amount of deposits to a special social insurance account at a certain percentage of employees' salary per month.1.75%.Mumbai Investment

The TRADE University Act (1926) stipulates that any company's workers have the right to establish a trade union; all 9 or more groups can register the establishment of unions.The law also provides special legal protection for trade union organizations in the face of certain civil or criminal proceedings.At present, the main national union organizations in India mainly include the Indian National Trade Union Conference, the Indian Labor Conference, and the Indian Trade Union Center.

Foreigners work in India

Foreigners work in India and need to obtain a work visa or project visa in advance; hold other types of visas, such as business visas (mainly engaged in business activities), tourism visas (the main purpose of sightseeing), etc., and are not allowed to work in India.India has no quota and other systems for foreigners, but the standards for applying for work visas or project visas are relatively high. Applicants must have a high technical and knowledge level, and the annual income reaches a certain standard; it is difficult to obtain a work visa or project visa.EssenceFor details, please refer to the relevant content of the sixth visa and residence permit of this guide for details.

2 Finance and taxation

Financial accounting system

India formulated India's Accounting Standards (IND AS) in 2013, which is the main financial reporting standards for Indian companies.India's accounting standards are basically consistent with the International Financial Report Standards (IFRS).India's accounting regulatory agency is the Indian Certified Public Accountants (ICAI).URL:

Financial report.The fiscal year in India is from April 1st to March 31st each year.According to the "Company Law", the company needs to prepare a financial report after the end of each fiscal year, and assigns an auditor registered by Indian Certified Public Accountants to audit it.Regentrar of Companies.Financial reports must include the following important contents:

● Balance Sheet;

● Profit and Loss Account;

● The main subject detail table (SCHEDULES);

● Cash flow statement;

● The list of subsidiaries (accounts of subsidary);

● Company management list (Corporate Governance);Surat Wealth Management

● Applicable Accounting Policies.

Financial audit.In India, the company's audit is mainly divided into legal audit and internal audit.Any type of enterprises of any type and scale conduct legal audit each year, and companies that meet certain conditions will arrange internal audit each year.For relevant provisions of legal audit and internal audit, see Table 5-6.

Corporate income tax declaration.Enterprises need to submit annual corporate income tax declaration forms within the prescribed time.Before submitting the application form, the taxpayer must calculate and pay the taxable amount in accordance with the tax law.

Table 5-6 Types and specific regulations for financial auditing

Table 5-7 The deadline for annual corporate income tax declaration in India

Note: The end of the fiscal year in India is ended at the end of March each year. Enterprises need to declare the corporate income tax of the first fiscal year before September or before the end of November.

According to the relevant provisions of the Indian Income Tax Law, if the taxpayer pays the tax amount in previous years and the actual operation of the year, it is estimated that the taxable amount this year will exceed 10,000 rupees.Table 5-6.

Table 5-8 Indian Enterprise Income Tax Prepaid Performance

Commodity and service tax declaration.The declaration of commodity and service tax is generally declared on a monthly basis, and the deadline is the 20th of the next month; small and micro enterprises can choose to declare on a quarterly, and the deadline for the next month after the quarter.Enterprises need to fill in the sales tax declaration form, the input tax declaration form, and the summary declaration form.The declaration of this tax type is mainly completed through the Indian government -led commodity and service tax management information system (GSTN). It systematically integrates a number of functions such as tax registration, tax declaration, invoice comparison, and tax payment.Organs, banks and other subjects.

Personal income tax declaration.Personal income tax is usually declared by individuals.Individuals need all revenue obtained in the previous year before July 31st each year, including salary and other sources of income, allowance and investment income, etc., as well as tax reduction information, fill in the personal income tax declaration form, and submit the tax bureau;Declaration on time will face a fine of 10,000 rupees.

Related transactions.According to India's "Enterprise Income Tax Law", enterprises need to submit the audited domestic and foreign affiliated transaction materials to the tax bureau before November 30;Facing a fine of 2% of the transaction.At the same time, enterprises need to prepare related materials such as related related transactions during the same period and save them for at least 8 years.

Tax audit is divided into simple assessment and detailed evaluation.In the process of simple assessment, the tax authorities will confirm the total income, adjustments, and tax refund of the taxpayer.During the detailed evaluation process, the tax authorities will adopt a more systematic evaluation method, such as collecting information and evidence from taxpayers, requiring taxpayers to reply to specific matters, etc., and issue a final assessment decision after comprehensive analysis.

If the annual transaction value of the company exceeds 50 million rupees, or the company provides professional services and the annual transaction value exceeds 5 million rupees, it is necessary to receive tax inspection;There is no need to accept tax audit.

If there is a compliance with tax, the enterprise needs to pay taxes and will face the risk of being fined by the tax authority.The amount of fines is generally 0.5%of the total sales of the company's annual audit year or the total transaction volume, and the maximum does not exceed 150,000 rupees.

3 Intellectual property protection

India is a member of the World Intellectual Property Organization (WIPO) and a member of the "Protection of the Paris Convention in Industrial Property" and a member of the international registration system of Madrid trademarks. It gives full protection of intellectual property rights.

India's laws and regulations on intellectual property protection mainly include the Patent Law, "Exterior Design Law", "Trademark Regulations" and "Copyright Law".The competent department is a patent, appearance design and trademark office (and copyright management office (and copyright management office (copyright management office (

In India, the Patent Law only protects the invention patent, and applies special laws such as the "Exterior Design Law" to the practical new type and appearance design, as well as the relevant patent related patents related to computer software.The longest protection period for patents is 20 years from the date of application.If a patent submits an international patent application (PCT) first, and then submits a patent application to India, the protection period is calculated from the date of submitting an international patent application.

Figure 5-1 Indian patent application process

According to the relevant provisions of the Patent Law of India, if there is the following situations, the patent cannot be obtained:

(1) In violation of the laws of nature, violating public order or morality, endangering the lives and health of humans and animals and plants, and severely damaged the environment;

(2) Only found scientific principles, abstract theories or any creatures or non -life substances produced in nature;

(3) Only a new form of known substances are found, which will not cause the known effect of the material to increase the effect of the substance; only the new effects or new uses of any known substance are found;Unless this known method can produce new products or use at least one new reaction.

India promulgated the Trademark Law in 1999.According to the law, the validity period of the trademark right is generally 10 years from the date of application; after expiration, the trademark holder can apply for an extension of the validity period.

India promulgated the Copyright Law in 1957 and has been revised five times so far. Among them, the 2012 revised version extended copyright protection to the digital field for the first time.

Figure 5-2 Indian trademark application process

In India, once the work is released, the author automatically obtains its copyright without any procedures.The validity period of the copyright is 60 years. For published text, drama, music and art works, the validity period is calculated from the time of the author's death;The work is calculated from the date of release.

The design refers to the combination of shapes, structures, patterns, decorations, lines or colors that are applied to two -dimensional or three -dimensional products through industrial methods or means.India promulgated the "Exterior Design Law" in 2020.According to the law, the protection period of the design is 10 years from the date of registration, and the application can be extended once after the expiration, and the extension period is 5 years from the expiration date.

Figure 5-3 Indian appearance design application process

Intellectual property infringement

Any behavior that has not been authorized or is registered with intellectual property rights will be regarded as infringement.The infringer has the right to ask the infringer to terminate the damage and compensate; if the infringer refuses to perform the obligations, the infringer can sue to the court.

India has not yet established a special intellectual property court, which involving intellectual property infringement is generally preliminary trial of the local court; if the defendant also objected to the ownership of intellectual property involved in the case and counterclaimed, the case may be transferred to the higher court for preliminary trial.The complete judgment procedure of intellectual property infringement may last for several years, but considering the timeliness of intellectual property rights, the court will apply simple procedures for cases with clear facts and clear power and responsibilities as appropriate, generally 6-8 months.

Patent and copyright infringement will face a maximum of 6 months to 3 years in prison, and fined 50,000 to 200,000 rupees; trademark infringement is up to 3 years in prison, and can be fined 50,000 to 200,000 rupees.

4 data and privacy protection

In 2000, the Indian Parliament promulgated the "The Information Technology Act (2000) to protect electronic data.The law stipulates that when preserving and using any personal sensitive information, enterprises need to ensure the security of relevant data to prevent their leakage or misuse; if the individual is damaged due to improper use after storage, the enterprise shall make compensation.The malicious leakage of other people's information will be punished by a fine of less than 3 years or a maximum of 500,000 rupees.Jaipur Wealth Management

In 2011, the Indian Communications and Information Technology Department (MCIT) issued the Information Technology Regulations (2011) to stipulate the responsibility and obligations of enterprises to collect and protect personal privacy data.According to this regulation, enterprises need to formulate related privacy policies for data collection and protection; they must be agreed before collecting personal data; they are allowed to use data legally for reasonable purposes; stop transfer or leak personal data.In 2019, the House of India drafted the "The Personal Data Bill (2019) to further protect personal data and clarify the responsibility of the data users.

At present, India has no government departments in charge of data security.According to the "Personal Data Protection Act", India plans to set up data protection agencies to be responsible for data security related work.

The Indian government requires foreign companies to share data.In recent years, India has been one of the fastest -growing emerging market countries and has attracted many American technology giants to settle.According to the latest news from Reuters in August 2020, the Indian government is planning to set up a new regulatory agency to implement the "non -personal data" regulatory plan, and requests Google and other large foreign technology companies to provide anonymous and non -personal user data.In this regard, American companies and chambers of commerce have expressed strong dissatisfaction and resolute opposition.

In recent years, India has promulgated relevant laws and regulations on data protection and launched a series of protection measures, which has enabled the Indian government to have certain dominance in the use of non -public information.Investment in Indian enterprises in India should strictly abide by laws and regulations on data and privacy, and also strengthen communication with the government on specific matters such as data protection to avoid negative impacts on enterprise development due to improper treatment.

Source: "Guidelines for the Business Environment of Enterprise Foreign Investment and Region -India (2020)"