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A business plan is a written statement or document that gives detailed description of a business or a division, mentioning its objective and goal and the method of achieving the same. In fact before starting the operations of a business, defining the business plan is a pre-requisite for various reasons, getting the right kind of investment being one of them. The business should be reviewed annually for understanding gaps and shortfalls, if any.

Preparing a business plan requires specialized knowledge of the domain. In order to prepare an impressive and winning business plan – a plan that is realistic, practical and achievable – it is important to hire experienced and premier business plan consultants so that a viable plan is drawn up.

What are the reasons for preparing a business plan?

Commercially, business plan is prepared to reach out to two types of audiences – the internal audience or external audience. Business plans that are prepared to impress and attract funding from banks and even investors are the ones that focus on external audience. These plans are also good to portray when companies are put up for sale or when looking out for new alliances. Business plans are prepared for the internal audience which mainly constitutes of employees and the management, in circumstances when one needs to explain and share certain business goals with them.

Formal business plans are given shape in case of starting a new business, or looking for a financier or looking to grow the business.

Constituents of a business plan 

In general, a typical business plan comprises of all or few of the sections below:-

• An executive summary which is basically a summarization of the entire plan.
• Mission statement that defines the reason behind the existence of the business
• A description of the business
• Analysis of the particular industry and environment
• Analysis of the Strength, weaknesses, opportunities and threats to the business
• Analysis of the market, potential customers and the existing competitors.
• Detailed plan of operations, sales and marketing strategies and financial plan.
• Summary of the management team
• Achievements and milestones, in case of existing businesses.

What are the major steps involved in Business Plan?

The different stages that a typical business plan consultant will work through during making a business plan include:-

• Researching and analysing the current model; the industry, the market conditions, competition scenario, production and operation capabilities of the organisation and overall industry, demand and supply conditions for the particular product or service etc.
• From the findings of the above step, the consultant will collaborate with the business owner and management team to plan the next course of action.
• Once the plan is drafted, it is put down on the paper so that concerned parties can review it.
• On reviewing, there will be points that would require editing and reformatting. After much to and fro and detailed discussion, the final format gets ready and then the formal business plan is ready for the external and internal audience.

The business plan consultant’s job is highly complex. Every business – new or old – needs a plan made by a professional.

Hiring a consultant who is certified to do so is the foremost parameter to check for a business. Also getting to know about their previous record and experience helps determine if they are the right people for your type of industry, business, product etc. Checking with few of their past customers will help you decide if the business plan consultant is the one that can give proper shape and definition to your business goal.

Source url - http://enterslice.aircus.com/what-is-business-plan-a-step-by-step-guide

It is a 10-digit unique code obtained from Directorate General of Foreign Trade (DGFT) under Ministry of Commerce and Industry, Government of India with a permanent validity for importing and exporting goods and services and thereby taking your business at a global level.

Who is required Import Export Code 

In case of import:

• When the importer has to clear his shipment from the customs, the custom authorities require IE code
• When the importer deals with the bank for the payment of money, Banks require IE code

In case of export:

• When an exporter sends the shipment. It is required by the custom port
• When an exporter receives money in foreign currency in his bank account, it is required by the Banks

Who is Exempted from Obtaining IEC Registration 

• There are some categories defined by DGFT, which are exempted from taking this code.
• When the import/ export is done for the personal use and not for the commercial purpose.
• When the import/ export is done by the government department and notified charitable organizations.

Note: In case of import or export of services or technology IEC Registration is necessary only when the service or technology provider is taking some benefit granted under the foreign trade policy to them or is dealing with specified services or specified technologies.

Who Can Apply for IEC Registration

• Individuals
• Proprietorship firm
• Partnership firm
• LLP
• Company
• HUF
• Government undertaking
• Registered trust and society
• Other entity
• Validity of Import Export Code
• IE code once allotted is valid for ever and no requirement to renew.
• Surrender of IEC
• IEC holder has not an option when he is not interested in operating it, he can surrender the same by informing the authority.
• On receipt of such intimation, the authority shall immediately cancel it.
• Requirement for Obtaining IEC
• PAN issued by Income Tax Authorities.
• passport Size photograph of the applicant
• Class 2 or class 3 Digital signature of the authorized person
• Cancelled cheque/Bank certificate required.
• If the applicant is NRI, RBI approval letter needs to be mandatorily attached.
• PROCESS FOR OBATINING IE CODE
• Visit the website of DGFT and login by entering the PAN. After completion of the process of entering OTP sent to mobile and e-mail, fill up the application and upload the documents.
• After successfully filling of application attach DSC of the applicant and submit the same along with the fees prescribed by the government.
• Generally, IEC Certificate is issued within 2-3 business, if no discrepancy is found in the application.
• CAN MODIFICATION OF IEC BE DONE?
• Yes. An IE code allotted can be modified by making an application to the issuing authority
• CHANGES IN IEC WITH THE INTRODUCTION OF GST
• With the Implementation of GST, Government of India through DGFT, in its effort for ease of doing business in India and keeping the identity of person uniform, vide its notification dated 12^th June 2017, notified that any person having GSTIN can import or export, into or from India, by declaring the GSTIN at the time of import or export.
• Additionally, for the entities who are not registered under GST registration because of its threshold limit, may use their PAN as their IEC for which application should be made to DGFT for authorizing PAN of Applicant as IEC.
• Further, for the existing IEC holders, necessary changes in the system are being carried out by DGFT so that their PAN becomes their IEC. So, IEC holders are supposed to quote their PAN for all the documentation done w.e.f. , 12^th June 2017.

Source url - http://www.enterslice.gomilio.com/en/blog/what-is-import-export-code-and-its-registration-15

Audit is all about review. Tax audit involves the process of reviewing or examining of the books of accounts of a business entity to confirm the income tax computations, deductions and other such financial calculations have been done in compliance with Income Tax laws of the country.  Tax audit enables easy income tax computation as well as Income Tax Return filing easy. The Tax Audit limit is regulated by Section 44D of the Income Tax Act.  Person carrying business or in a profession have to be get their books of accounts audited compulsorily under Section 44AB pertaining to certain tax audit applicability.

The tax audit applicability categories the following persons who have to undergo the audit process on a mandatory basis:-

• Persons carrying on business with a turnover or aggregate sales exceeding 1 crore, but have not opted for Presumptive Taxation Scheme.
• Persons carrying out business with total or aggregate sales or turnover exceeding 2 crore and have opted for the Presumptive Taxation scheme
• Professionals whose gross receipts exceed Rs. 50 lakh annually

The presumptive taxation scheme under Section 44AD mentions that tax audit is not required for persons who are enrolled for the scheme and have a turnover of less than INR 2 crore annually.

Purpose of Tax Audit

• The tax audit process ensures that the books of accounts have been maintained correctly and as per Income Tax provisions.
• Tax audit brings out discrepancies as pointed out by the tax auditor after a thorough examination of the books.
• Since the tax audit report follows a prescribed format, it saves time of tax authorities in checking out minute details and correctness of the information as filed in ITR.

Tax Audit Report Format

The audit report is required to be furnished either through –

• Form 3CA – this report is applicable for persons carrying out business or profession who need to get their books of accounts mandatorily audited as per the Act.
• Form 3CB – this form is required to be furnished by persons carrying out business or profession for whom it is not compulsory to get their books audited under the Act.
• Form 3CE – is applicable for Non-residents and foreign companies that receive any form of payment or fees for technical services or royalty from the Government of India.

Tax audit applicability has a legal validation only if submitted by a Chartered Accountant or a firm of Chartered Accountants or a Statutory Auditor. The tax audit report needs to be signed by the accountant or the auditor who has performed the audit.

For e-filing the online tax audit form, the report needs to be signed by the accountant or the auditor as well as his membership number needs to be mentioned alongside. The audit report first needs to be submitted to the concerned person or taxpayer digitally to get his approval before the online tax audit is filed electronically.

There is a tax audit limit for Chartered Accountants too. They cannot undertake more than 60 tax audits in a year.

The penalty for not getting the books of accounts audited for persons who are compulsorily required to get the audit done is 0.5% of the turnover or gross receipts, with a maximum limit of Rs. 1.5 lakh. The penalty is levied under Section 271B of the IT Act. However, the person is given a chance to give reasons for non-compliance, and if found acceptable, no penalty is imposed.

The audit report needs to be obtained before or by 30^th September of the said assessment year. Only the 3CE report has a due date of 30^th November of the said assessment year.  More info visit http://entersliceindia.pbworks.com/w/page/129363090/Things-to-know-about-the-Tax-Audit

TDS or Tax Deducted at Source is governed by the rules and regulations of the Income Tax Act, 1961 is a process where an employer deducts tax in advance before paying the salary to his employee or a payee deducts tax before making the actual payment to the receiver. The method of deducting tax is applied on incomes being earned on a regular basis as well as occasionally.

What is TDS Return?

TDS Return is a statement that summarizes the tax that has been deducted showing the details of the TDS entries deducted by the payee in lieu of TDS on a quarterly basis. This statement or the TDS Return is required to be filed with the IT Department every quarter.

How to File TDS Return?

The TDS returns can be filed by using different types of Return forms. They are:-

• Form 24Q is for filing of return when TDS is deducted from salaries of employee. Under Section 192 of the IT Act, 1961 the TDS Return is prepared. Under the same regulation, the online TDS Return or eTDS is also prepared. The Form 24Q consists of 2 Annexure – Annexure 1 is all about the employer and the employee; the Annexure 2 is the one that shows the salary details and tax computations
• Form 26Q is to be filed when TDS is deducted for any and all kinds of payments excluding salary payment. This statement is prepared as per Section 200 (3), 193 and 194 of the Income Tax Act 1961. This Form is applicable in case of tax deducted on fees paid to the directors, other professionals, interest on securities etc.
• Form 27Q is required to be filed on tax that has been deduced at source from incomes received from share dividends, bonus, interest or any other income of non resident Indians and foreigners other than their salary.
• Form 27EQ is meant for to depict the collection of tax at source following regulations of Section 206C of the IT Act, 1961.

What is the procedure of filing online TDS return?

For online TDS return filing, the following steps need to be followed:-

• The file format of the e-TDS and the e-TCS return is present at official website.
• The e-TDS or e-TCS return can be made using the Return Preparation Utility software of NSDL (National Securities Depository Limited) or even a software developed by a third party.
• The prepared statement needs to be verified using NSDL software called File Validation Utility. In case the software reports errors, the same need to be rectified and refiled for verification.
• The verified file can then be uploaded at official website.  In order to upload the TDS or TCS return statements at the site above, the organisation has to be registered with the site.

What are the due dates of TDS Return Filing?

At the end of every quarter the TDS for the previous quarter has to be submitted to the Income Tax Department by the payee or the employer. The details have been shown below:-

• The TDS Return for the first quarter i.e. April – June the last date for TDS return filling is 31^st July of the same financial year;
• TDS return for the second quarter (July – August) has to be filed by 31^st October of the same financial year;
• For the third quarter (October – December), the last date for TDS return filling is 31^st January of the same financial year; and
• The fourth quarter (January – March) returns need to be submitted by 31^st May of the next financial year.

Late filing of TDS Return 

As per a new ruling that has come into force from 1^st April 2017, the maximum penalty for late filing of the return is Rs. 10000.

Source url http://enterslice.strikingly.com/blog/guide-for-tds-return-filing-on-income-tax-portal

It is said that a good idea only when nicely planed turns out to be good venture and a good idea if not nicely planned may turn out into a disaster. In order to start a business, certain pre planning is definitely required.

What is meant by business plan?

A person who establishes the business or proposing to establish a business, if asked about his/her business plan, then it may happen that he will write it on a piece of paper about his business plan and yes is nothing but a business plan. But then the next question is has he/she covered all the aspects of business? Yes he may be and yes he may not have covered all the aspects of business.

 A business plan should contain all such essentials in such a manner that after reading it, the reader get to know exactly what the business is all about and are engaged into.

It shall include following:

• Business Description

It is the short description of the business outlook, future plans, market dependency, present scenario, trend , possible change in trend and its impact on the business, induction of any new product or such other development.

• Potential competition

In order to stay competitive, knowing your competitors is very important. Analysis of strength and weakness of competitors, and finding the loophole in it and looking for potential of development in it.

Competitive strategies usually fall into these five areas:

• Product
• Distribution
• Pricing
• Promotion
• Advertising

• Market Strategies

Clearly defined market strategies, next steps, the target market and at present position of the company in the market are of great importance. Business Plan main aim is to create a development budget that will enable the company to reach its goals.

• Financial Goals

What is the goal of company in coming years in terms of finance? It can be framed in short term and long term goals basis. As Financials of any company is the back for it and the most vital reason to run a business is nothing but to run the business profitably.

• Promotion Plan

The promotion strategy shall include every marketing tool utilized in the communication effort. This may includes Advertising, Packaging, Public relation, Sales promotion, Personal sales etc.

• Costing budgeting and cash flow of the company

Take into account all the expenses and profit sourced areas to run the business. The cash-flow statement is one of the most critical information tool in business, helping in reaching out to the fact that how much cash will be needed to run the business and survive in the market, when it is going to be required, and from where the company will be able to manage safely.

Design & Development Plan

The product's design, chart its development within the context of production, marketing and the company itself, and create a development budget that will enable the company to reach its goals.

Operations & Management Plan

How the business functions are going to run. It shall include the details of the logistics of the organization which shall include various responsibilities of the management team, the tasks assigned to every division within the company.

Business plan should be concise and touching on most of the important aspects of the business, at the same time it should be drafted in such a manner that the reader without getting bored , gets a fair idea about our the business engagements.

 Source url – http://entersliceindia1.emyspot.com/blog/legal/business-plan-summary-of-future-plans-of-an-enterprise.html

In this article, we are going to discuss the steps on how to do TDS return filing online. Check out the steps below:-

• You can get started first of all by logging on to the TRACES and slowly start Filing in your requested details for the e-filing of your TDS return.
• Next, you can click on the register tab for the e-filing. You will see this particular option on the left corner of the newly opened window page of TRACES.
• It will take you to the e-filing portal of the ITR or income tax department. Here you will be asked for registering. You will do as a tax deductor or the collector. Remember, that your TAN shall be your default user id.
• Now you will be required to create a new password. Along with that give in the details of the authorized person like their registered mobile phone number, a work email address and other similar details of your organization. This includes the information like your address, landline number, fax number etc. Once you fill in the requested information on the form, just click submit tab then after keying in the visible captcha.
• Now next, you are supposed to log on to the e-filing portal of the income tax department by using your PAN card number as your password. Put the date of incorporation of your company or organization, or the date of birth of yours in case it’s your personal e-filing of the TDS return. And now approve the TAN Registration.
• Once approved, you will be sent a link to click on, on your email address that has been provided by you earlier. A PIN shall be sent on your mobile number then.
• Now once you click on the received link, a page will open and enter the PIN and then click on the submit button. Now, this completes your registration process of e-filing of the TDS returns.
• An important point here for you to note is that the above-mentioned information is strictly for those who have never been registered as a tax deductor or a collector.

Know the basic procedure for the e-Filing of the TDS Return

• You may start with the filing of TDS return details that are requested from you into the software or into the return preparation utility and the process it.
• Now you can select an option to upload the TDS return for e-filing to the e-filing portal of the income tax department. This will just generate a ZIP file for you. This ZIP file consists of your processed TDS return filing and then you may save it.
• Next, you can go to the DSC management utility, and then select the option for a bulk upload. To this attach your ZIP file that was earlier generated with your TDS return information.
• Pick the DSC option which will be in a .pfx form or USB token file. Select your DSC certificate file and generate DSC file to be saved to yourself. However these days, digital signatures are not always required on the income tax return filing.
• Now again log on to the income tax department portal with your tax deductor or the collector id and then select a tab that says upload TDS return. Fill in your asked details and information and then click on submit button.
• After the above steps followed, your token number shall get generated and later on checked onto through the option that says “view filed return”. This completes your job and your e-filing process is complete.

Source url - https://entersliceindia.wixsite.com/mysite/blog/what-is-the-procedure-for-tds-return-e-filing-in-india

A Service Level Agreement (SLA) is a formal document which the Service Provider and the user of the services mutually agree to. It defines the terms of the services expected from the service provider. It is output-based where the purpose is to define what the customer shall receive and in what manner. 

A Service Level Agreement documents the arrangement between service providers and customers who are the end users. Service Level Agreement consists of the following metrics that define levels of service:

• A brief description of the services to be provided as agreed between the parties,
• Objectives,
• Reliability and Responsiveness expected of the service provider,
• The Deliverables and the procedure of reporting,
• Consequences for failing to meet deliverables,

6. Performance indicators,
7. Prioritized areas,

• Hierarchy of contacts and escalation of problems,

9. Periodic Reviews

The exact metrics for each Service Level Agreement varies as per the service and the service provider, which must be provided in a specific and detailed manner. An SLA will comprise technical definitions which shall then be followed in the rest of the document.

A Service Level Agreement may form a part of a Master Service Agreement (MSA) with a Statement of Work (SOW) to support the actual scope of the work involved in the transaction. 

Who uses Service Level Agreements?

SLAs are most common in the IT markets where the companies often rely on external services for smoother operations. However, there are many more business relationships which can be governed by a Service Level Agreement.

These days, popularly, the businesses outsource a wide range of services. In such cases, it is the SLA which defines the relationship between the client company and the service provider, which included logistics providers, accounting services, freelancers, consultants etc. The Service Level Agreement thus contributes to a mutually beneficial and unruffled relationship between the parties. SLAs are also very popular among internal departments in larger organizations.

What are the advantages of Service Level Agreements?

A Service Level Agreement is technical in nature and specific to the scope of services which makes it easier for the parties to stay focused on the project benefitting both the parties.  

Service Level Agreements provide the performance index as well as the provisions of periodical review of the stages of the service. This ensures both parties to stay updated and on track as per the time frame decided.  

Thus, Service Level Agreements help keep the parties on the same page.

What are types of Service Level Agreement?

Though SLAs are drafted as per an individual project and the services being provided, yet broadly can be categorized as follows:

• A customer service level agreement- with an external customer.
• An internal service level agreement- between the departments of the same organization.
• A vendor service level agreement- with a vendor.

The above three types can be supportive of each other in the same project.

Source url - https://entersliceindia.wixsite.com/mysite/blog/what-is-a-service-level-agreement

 Tax Audit

As per section 44AB of Income Tax the Tax audit has been made mandatory and that all taxpayers are required to get the accounts of their business or organization audited by an outside agency.

Things are inspected during Tax audit

An examination of an individual’s or organization’s tax returns is verified. And that all the income, expenditure and deduction information have been filed correctly.

            In case an organization is covered to undergo an audit covered in other provision of law, is also required to do Tax audit?

No, in case an organization is required to undergo tax audit under other than Income tax act, then Tax audit is not compulsory for such organization.

Applicability:

Audit report:

Audit report is filed by qualified professionals usually the CA :-

• Form No. 3CA is furnished when a person carrying on business or profession is already mandated to get his accounts audited under any other law.
• Form No. 3CB is furnished when a person carrying on business or profession is not required to get his accounts audited under any other law
• In addition to above Form No. 3CD which forms part of audit report is also filed.

Due Date for Filing Tax Audit Reports:

The Due date of filing tax audit report under section 44AB is 30th September of the assessment year.

Penalty for Non-Compliance under sec. 44AB:

In case of non compliance a person is liable for paying penalty of 0.5% of his turnover / gross receipts subject to a maximum of Rs 1,50,000.

Due date for filing the tax returns

 Under section 44AB due date to file Tax return is 30th September of the assessment year.

In transfer pricing audit cases, the due date for tax audit return filing is 30th November of the assessment year.

Advantages of Tax Audit:

• It makes income computation more efficient
• Correct liability is reached while Audit.
• It acts as an eye opener for fraudulent practices.
• Books of accounts of the company/entity are properly maintained.
• Documentation is kept proper all the time, keeping in mind the preparedness for tax Audit.

Source url - http://popea7d9f45.iwopop.com/what-is-tax-audit-of-an-enterprise

We need to understand the need of the business plan, when the business is a small scale then you may not need a business plan. But when you like to expand your business or you want a potential growth in your work environment then the business plan is a must do work. A good business plan is one that guides and improves the day to day decision making of the business operators, such that the business prospers into a profitable, going concern for the current owners/investors.

We need a business plan in order to have a path to follow to your success. No general goes to war without a “plan”. No serious business person goes into a venture without a clearly defined strategy. A well-written business plan will include achievable milestones or KPI’s (key performance indicators) to enable you to “sign off” mini achievements along the way. You are seeking to document your strategy to help your internal team understand it, You are seeking a bank loan or investment and other circumstances.

What is a basic structure of a business plan?

There is a basic structure that is required for a good business plan:

Executive summary

Business overview

Description of products and services

Industry overview

Marketing strategy

Operations plan

The Financial plan, these parts are crucial to making the readers of it understand your future business in a full way. A plan should cover all the important matters that will contribute to making your business a success. These include the following:

Basic business concept:

This is where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success.

Products and services and their competitive advantages:

Here's your chance to dazzle the readers with good, solid information about your products or services and why customers will want to purchase your products and services and not those of your competitors.

The background of management team and key employees:

Having information about key personnel is an important but often misrepresented portion of a business plan. It’s not a long and detailed biography of each person involved but an accurate account of what they've done and what they bring to the table for this specific business opportunity.

Financing needs and working capital:

This is based on your projected financial statements. These statements provide a model of how your ideas about the company, its markets, and its strategies will play out.

Other special circumstances:

If you are participating in a government program or some other special program, you might be required to provide a business plan consultant as a filing requirement.

The start-up business plan is not just a document that will bring you investors and funding. It’s also a great way for first-time entrepreneurs to help them declare their vision and plan for their company. Having the business plan in your hands will force you to think and develop your strategy even further. The business plan will serve you as a guideline to track your progress and hold yourself as a CEO more accountable about your future steps.

An Investor Pitch Deck is a brief presentation created to provide a brief overview of the business plans and strategies to potential Investor, partners or customers. These are especially of help to the startups, professionals and corporations who are interested in financial aid from external sources in form of investments.

The key feature of an Investor Pitch Deck is its uniqueness. What sets this pitch apart from the others which the investor is considering? How does the pitch excel in convincing the investor? Does the pitch fall on the same length as the investor’s ideas?

There are many guidelines that are provided for what must be included in an Investor’s Pitch Deckbut what are the points that must be avoided in a pitch at all cost? Let us look at some pointers which will help you break the monotonous streak of Investor Pitch Deck without compromising on your vision:

• Most important is not to make the Investor Pitch Deck too long? The powerpoint presentation should not be more than 25-30 slides, and in no way exceeding 35, after which the investor shall start losing his attention and interest. 
• Avoid a text rich presentation. The Investor Pitch Deck must be more communicative and only an aid toyour words. The visuals keep the audience engaged and the interaction feels more personal. Avoid long words, sentences, and paragraphs, but do not overdo on the images. Keep it crisp.
• Don’t be repetitive. Praising your product in every slide shall give the impression that you are not confident in your strategies.
• The Investor Pitch Deck must not waste time on irrelevant or flattery information. Any information that has no direct relevance to your product, business plans and the investment must be removed.
• Too many numbers can be toxic. The key financial data to be presented in the Investor Pitch Deck can be presented in form of graphs or pie charts with a summary so that the numbers do not kill the attention of the audience.
• In an attempt to impress the Investor, one may exaggerate the figures- big mistake. Do not take your Investor for being fools. They have their own experts to verify the facts and data being supplied. Keep it simple and keep it correct.
• The Investor Pitch Deck does not require mentioning every single detail or development of the product; it is not a progress report. Present the big picture with the important details which shall showcase your confidence in your product.
• Before an Investor’s Pitch Deck is prepared, one must have clarity about the product, expansion strategies and business plans. Lack of clarity helps to elaborate on the central idea with precision.
• Dedicate few slides to marketing yourself as an asset to the investor. Be subtle and don’t glorify yourself. Instead, make the investor feel that investment in your product must become his priority. Give him something to think for next few days.
• Do not present unrealistic goals. Keep your approach, methodand plans pragmatic and workable.
• Keep your Investor Pitch Deck grammatically correct and scan the pitch to avoid spelling mistakes.
• Do not copy your pitch from any sources. Take inspiration but be original. Tailor your Investor’s Pitch Deck for your product, need, and your Investor. 
• And at all cost avoid following, they have no place in an Investor Pitch Deck:
• Your or anyone’s philosophical phrases;
• Pep talk;
• Slangs;
• Industry abbreviations and jargon;
• Pessimistic and negative statements;
• Contradicting information;
• Foreign language words, phrases, even if they are popular.

By considering the above suggestions, you can improve the quality of your Investor Pitch Deck and take it up a notch. It should be noted that a pitch manifestsyour hard work and belief in your product.

Source url - https://entersliceindia.wixsite.com/mysite/blog/what-to-avoid-in-an-investors-pitch-deck

Consulting Agreement

Sometimes in place of hiring in house experts on various areas of operation organizations plan to hire consultants with expert knowledge and expertise in particular fields for a set period of time or for any particular task. These consultants can either be individuals or organizations. The agreement executed between the organization and consultants defining the rights and obligations of both such parties is known as Consultancy Agreement.

Benefits of a Consulting Agreement

Now, that we are clear to the meaning of consulting agreement let us try and understand the requirement of such writer agreement from a business perspective. Following are the benefits of a consultancy agreement:

• It’s the best choice if the requirement is not of regular nature i.e. it is an event based requirement or only for limited period of time. In such a case it is better not to hire a full time in house expert but an individual expert for the same.
• If the requirement is for critical analysis and expert opinion then hiring a consultant is a wise decision. They are experts and have better understanding of the market and economy. Thus they can provide better guidance and extensive reports based on the requirements.
• The work of consultants in unbiased and thus provides better results and solutions to critical business issues.
• Another major benefit is flexibility in business practice. They provide custom made solutions to their clients and if the services are not satisfactory, one can switch the consultants.
• Lastly, hiring a consultant is a cost effective solution. If a permanent employee is hired then it will incur a regular cost in the form of salary.

Elements of Consultancy Agreement

While executing a consulting agreement some key factors must be kept in mind. Following elements must be included in a consultancy agreement to make it more efficient and effective:

• Description of Parties
• In the beginning of the contract complete details of both the parties must be mentioned in the. Details like name address and authorized representatives shall form part of it.
• Date of Execution
• The effective date of the contact stating the start of their work relationship must be clearly mentioned. The period of the contract is calculated from this date onward.
• Term of Contract
• Along with the effective start date the agreement shall also mention the duration of contract. Or in case the contract is event based that shall also form part of it.
• Details of Services
• The contract must include details of the nature of services the consultant will be providing. This will help eradicate any kind of ambiguity.
• Payment Information
• The agreement shall clearly mention the payment related details like amount of payment, time and mode of payment.
• Restriction and Non-disclosure Clause
• Because of the nature of work, the consultant has access to confidential information, thus the contract shall also include non-disclosure clause and restrict them from sharing such information from third party.
• Rights to Intellectual Property
• The agreement shall clearly define the ownership details for any kind of intellectual property created during the course of the business.
• Liability Clause
• In case of any kind of loss to either of the parties, the liability and indemnity clause shall form part of it. Such loss can be due to defective products, untimely or delayed results etc.
• Termination Clause
• This clause shall state the conditions which will result in termination of the contract.
• Signing
• To make the agreement valid and enforceable in the eyes of law, it must duly dated and signed by all the parties to the contract.

Source url - https://entersliceindia.wixsite.com/mysite/blog/elements-of-consulting-agreement-its-relevance

A non binding agreement consisting terms & conditions for the investment is known as Investment Term Sheet. An Investment Term Sheet is a non binding document except clauses related to confidentiality and governing law. It is a type of principle agreement which consist valuation. It mainly consist discussions on which parties have agreed informally. After preparation of terms sheet, a due diligence process shall be carried out. Eventually parties will sign the agreement. No contractual obligation has been created by the term sheet on investor to make investment and on the company as well as to issue shares to the investor. Under this, details of the investors are given, valuation of the company, and the amount of investment.

Every type of investment requires proper negotiations for which such type of document is required.  Investment Term Sheet is a non binding document under which terms & conditions are defined which are mutually agreed between the parties in relation to investment. Terms sheet is a non binding document thus do not have legal value and it cannot be enforced. It is drafted in a manner that no misunderstanding will occur in future. It will be treated as a reference document for drafting of legally binding contract.

Now let’s understand some of the features of term sheet. 

• Ample time is there for parties for better negotiations.
• It helps in eliminating the possibility of misunderstanding among the parties involved.
• It gives the clear description of the major aspects of the deal.
• It helps in removing the possibility of unnecessary disputes between the parties.
• A term sheet helps in ensuring that the expenses of legal charges which are involved under the drafting of legally binding contract have not incurred in the initial stage.
• It enables the parties to focus on business issues involved in transaction at the initial stage.
• In long run of the company it is always beneficial to invest time and resource in drafting term sheet for the company.

Elements of Term Sheet

• Details of the investor and the entity under which the investment is being made shall be mentioned under term sheet.
• Details of the mode of investment and the time period as decided.
• Details of Voting Right of parties
• Maintain proportionate ownership
• Draft Share purchase agreement, if required.
• Warranties & Representations,
• Terms related to Non-Competition & Non-Disclosure,
• Other Provisions

Above mentioned terms may be included in terms sheet as per requirement of transaction as well as on the basis of requirement of the parties.

Things to be considered by the parties in term sheet

An investment term sheet gives a base to future formation of legally binding agreements. At the time of making term sheet each & every clause and required provisions must be carefully analyzed, and proper discussion and negotiation should take place while preparing this. Every aspect and future impact should be considered while making.

While making investment terms sheet and during negotiations, professionals may be hired or consulted for experience outlook and also for unbiased approach. By this, an unambiguous and exhaustive document can be made.   You can contact us for the preparation of Investment term sheet as we have a team of professionals and we can assist you accordingly.

Source url - https://enterslice-32.webself.net/blog/2018/08/11/all-about-investment-term-sheet-for-startups