Tax Law Updates – 2025

Tax Law Updates – 2025 

1. GST Data Analytics–Driven Notices
   Increased issuance of automated notices based on GST–Income Tax–Customs data integration.

2. Tighter ITC Eligibility Norms
   Greater emphasis on supplier compliance, GSTR-2B matching, and restriction of provisional ITC claims.

3. AIS & TIS as Primary Assessment Tools
   Income-tax assessments increasingly driven by AIS/TIS mismatches rather than scrutiny selection.

4. Expansion of e-Invoicing Coverage
   Lower turnover thresholds brought more MSMEs into mandatory e-invoicing compliance.

5. Stricter TDS/TCS Penalty Enforcement
   Automated late fees, interest, and disallowances triggered for even minor delays or mismatches.

6. Faceless Appeals – Procedural Refinement
   New instructions issued to reduce adjournments and enforce time-bound disposal of tax appeals.

7. Heightened Scrutiny of Foreign Remittances
   Increased reporting and verification under FEMA, Form 15CA/CB, and purpose codes.

8. SEZ & Export GST Refund Tightening
   Refund claims subjected to stricter documentation and endorsement verification.

9. Accountability of Tax Professionals Increased
   Tax audit reports, certifications, and representations faced closer departmental examination.

10. Litigation Management & Settlement Focus
    Government emphasis on early resolution through dispute settlement and reduced litigation measures.

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Key Takeaway:
2025 marked a shift towards technology-led enforcement, real-time compliance monitoring, and reduced tolerance for procedural lapses.

Legal Update 2025 - Lexfins360

 

LexFins Legal Update 2025 – Key Corporate Law & Regulatory Developments (India)

1. Labour Codes – Gradual State-wise Rollout
   Several States moved closer to implementing the four Labour Codes, pushing corporates to realign HR policies, wage structures, and compliance frameworks in anticipation of full enforcement.

2. Stricter Corporate Governance & Independent Director Oversight
   SEBI and MCA enhanced scrutiny on board independence, related party transactions, and disclosures, increasing accountability of directors and KMPs.

3. Digital Compliance & Paperless MCA Filings
   MCA accelerated digitalisation—web-based forms, auto-scrutiny, and AI-driven checks—reducing manual intervention but increasing penalties for inaccuracies.

4. Heightened Focus on Beneficial Ownership & KYC
   Significant Beneficial Owner (SBO) compliance and Director KYC norms saw stricter enforcement, with non-compliance leading to freezing of DINs and penalties.

5. GST Litigation & Anti-Evasion Drive Intensified
   Authorities focused on fake invoicing, ITC misuse, and SEZ-related supplies, prompting corporates to strengthen documentation and internal controls.

6. IBC – Faster Resolution & Creditor-Driven Processes
   Amendments and judicial trends under the Insolvency and Bankruptcy Code emphasised time-bound resolution, commercial wisdom of CoC, and reduced scope for delays.

7. Data Protection & Cyber Risk Governance
   Companies moved towards operationalising the Digital Personal Data Protection framework, elevating board-level responsibility for data governance and breach management.

8. SEBI’s Push on ESG & BRSR Compliance
   ESG reporting, especially under BRSR, became more structured, pushing listed entities to integrate sustainability into governance and risk management.

9. Increased Scrutiny on Related Party & Group Transactions
   Inter-company loans, guarantees, and services faced closer regulatory and auditor examination, requiring arm’s length justification and robust approvals.

10. Rise in Corporate Dispute Resolution & Mediation
    Courts and regulators encouraged mediation and settlement mechanisms, making corporate dispute resolution faster and commercially pragmatic.

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LexFins Insight:
2025 marked a shift from form-based compliance to substance-driven governance, making proactive legal advisory, internal audits, and risk mapping essential for corporates.

 

LexFins 360 – Global Private Company Name Endings Guide

At LexFins 360, we help clients understand international corporate structures. Below is a reference of common private company types and their legal name endings across countries, useful for cross-border business, compliance, and incorporation purposes.

Country	Private Company Type	Typical Ending / Abbreviation	Notes
Germany	Private Limited Company	GmbH	Gesellschaft mit beschränkter Haftung (“Limited Liability Company”)
Austria	Private Limited Company	GmbH	Same as Germany, limited liability
Switzerland	Private Limited Company	GmbH / Sàrl	Sàrl = Société à responsabilité limitée (French-speaking regions)
France	Private Limited Company	SARL	Société à responsabilité limitée (“Limited Liability Company”)
Italy	Private Limited Company	S.r.l.	Società a responsabilità limitata (“Limited Liability Company”)
Spain	Private Limited Company	S.L. / S.L.U.	Sociedad Limitada / Unipersonal (single-member company)
United Kingdom	Private Limited Company	Ltd	Common in England, Wales, Northern Ireland
Ireland	Private Limited Company	Ltd / Teoranta	Teoranta = Limited in Irish language
India	Private Limited Company	Pvt Ltd	Under Companies Act, 2013
USA	Limited Liability Company	LLC	Limited Liability Company
Canada	Limited Liability Company	Ltd / Inc / Corp / LLC	Depends on province and federal registration
Australia	Proprietary Limited Company	Pty Ltd	Proprietary Limited company
New Zealand	Private Company	Ltd	Similar to UK Ltd
Netherlands	Private Company	B.V.	Besloten Vennootschap (“Closed Company, Limited Liability”)
Belgium	Private Limited Company	BV / SPRL	BV = Besloten Vennootschap, SPRL = Société Privée à Responsabilité Limitée
Sweden	Private Limited Company	AB	Aktiebolag (“Stock Company / Limited Liability”)
Denmark	Private Limited Company	ApS	Anpartsselskab (“Limited Liability Company”)
Norway	Private Limited Company	AS	Aksjeselskap (“Limited Company”)
Finland	Private Limited Company	Oy	Osakeyhtiö (“Limited Company”)
Japan	Private Limited Company	KK	Kabushiki Kaisha (“Joint-Stock Company / Limited Liability”)
China	Private Limited Company	Ltd / 有限公司 (Youxian Gongsi)	Limited liability company
Russia	Private Limited Company	OOO (Общество с ограниченной ответственностью)	Limited liability company
South Korea	Private Limited Company	Ltd / 유한회사 (Yuhan Hoesa)	Limited liability company

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LexFins 360 Insight:

“Understanding local corporate naming conventions is critical for cross-border compliance, legal contracts, and international business expansion. Each country has unique requirements for private companies, often reflected in their official suffix.”

LOANS UP TO 10 CRORE

 

Attention Entrepreneurs: Unlock Collateral-Free Loans up to ₹10 Crore!

The Government of India has just supercharged the CGTMSE scheme to make business funding more accessible, especially for small and medium enterprises like yours.

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✅ What’s New in 2025?

🚀 Loan Limit Increased

Now you can get collateral-free credit up to ₹10 Crore (up from ₹5 Cr earlier)!

💸 Lower Guarantee Fees

New reduced annual fees for loans above ₹1 Cr:

• ₹5–₹8 Cr: 1.10%

• ₹8–₹10 Cr: 1.20%

👩‍💼 Extra Support for Women Entrepreneurs

If your business is women-led, you now get 90% guarantee cover (earlier 85%)—making loan approvals easier and less risky for banks.

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📌 Who Can Apply?

• Startups, manufacturers, service providers & retailers

• Proprietorships, partnerships, LLPs, private limited companies

• New or existing businesses

If you have a solid business idea or expansion plan, you don't need to offer land or property as collateral.

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🔑 How to Access These Benefits

1. Prepare a business plan and financials

2. Visit any bank or NBFC registered with CGTMSE

3. Apply for your loan under CGTMSE

4. The lender will seek a government-backed guarantee on your behalf

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🤝 Need Help Navigating the Process?

We at LexFins 360 are here to:

• Structure your loan proposal professionally

• Connect you with CGTMSE-registered banks

• Ensure your documents are in place

• Provide post-loan compliance support

📩 partner@lexfins.com
🌐 www.lexfins.com

GCC in a Box

GCC in a Box: A New Model for Global Capability Centres in India

The Emerging Need

Global companies are increasingly looking to expand their strategic functions—such as IT, finance, analytics, HR, and customer support—into new geographies that offer high talent availability at sustainable costs. India has long been a top destination for such Global Capability Centres (GCCs), with over 1,600 already established.

While metros like Bengaluru, Hyderabad, and Pune have traditionally dominated this space, Tier-2 cities in India are emerging as the next frontier. These cities offer excellent infrastructure, talent pools from reputed educational institutions, and lower real estate and operational costs. However, they often lack a simplified, integrated solution for setting up GCCs swiftly and efficiently.

Introducing: GCC in a Box

GCC in a Box is a plug-and-play model designed to help global companies launch fully operational capability centres in Tier-2 Indian cities in record time—without the usual friction of setup.

This one-stop bundled solution includes:

• Grade-A commercial infrastructure via local real estate partnerships

• Legal, financial, and regulatory setup and compliance

• Support for recruitment, HR, IT, and operational logistics

• End-to-end project management to achieve go-live in 60 days or less

Whether a company is setting up a captive unit or partnering with a managed services provider, the GCC in a Box model ensures risk-mitigated entry and fast, cost-effective scaling.

Why GCC in a Box Works

• Speed to Market: Rapid deployment with ready-to-go infrastructure and compliance workflows

• Cost Efficiency: Reduced overhead compared to metro operations

• Talent Access: Connect with skilled professionals from Tier-2/3 cities without intense competition

• Regulatory Clarity: Pre-defined frameworks for legal, tax, and operational compliance

About LexFins 360

LexFins 360 is a corporate advisory and compliance firm specializing in legal, financial, and secretarial services. We support foreign and domestic companies in structuring operations in India, with a strong focus on regulatory compliance, governance, and process integration.

Our “GCC in a Box” initiative is backed by extensive experience in foreign company setups, talent acquisition partnerships, and infrastructure coordination.

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Let’s Build the Next Wave of India’s GCC Growth

📧 partner@lexfins.com
🌐 www.lexfins.com
📞 +91-8848853865

Reasons for Investing Through Singapore

Reasons for Investing Through Singapore

✅ 1. Favorable Tax Environment

• Corporate Tax Rate: ~17%, far lower than India’s 30%.

• No Capital Gains Tax: Unlike India’s 15%–20%, Singapore offers zero capital gains tax.

• Lower GST: Only 7% compared to 15–18% in many other countries.

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🌐 2. Double Taxation Avoidance Agreement (DTAA)

• Comprehensive DTAA between India and Singapore limits withholding taxes on dividends and gains.

• Example: Dividends from Indian subsidiaries to Singapore holding companies are often exempt from Indian tax.

• Facilitates tax-efficient repatriation of profits.

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💡 3. Mitigation of Double Taxation

• Singapore-based structures help optimize global tax exposure.

• Example: Retained earnings at a Singapore level may not trigger US taxation under proper structuring.

• Enables smarter cross-border tax planning.

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⚙️ 4. Ease of Doing Business

• Singapore ranks consistently in the global top 3 for business-friendly environments.

• Offers transparent laws, minimal red tape, and efficient processes.

• A smoother alternative to India’s complex regulatory framework.

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🚀 5. Incentives for Startups & Investors

• Attractive tax breaks, funding schemes, and R&D incentives from the Singapore government.

• Streamlined compliance and business incorporation.

• Ideal for both startups and large corporations investing into India.

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🌏 6. Strong Cultural & Historical Ties

• Deep-rooted India–Singapore trade and cultural connections.

• Encourages trust, cooperation, and familiarity in business practices.

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📌 Conclusion

Singapore is more than a tax-efficient jurisdiction — it’s a strategic gateway to India. From favorable treaties and incentives to ease of business, it offers a powerful platform for global companies to reduce tax burdens, minimize risks, and maximize investment returns.

Tax System Comparison: Singapore and Mauritius

 Tax System Comparison: Singapore and Mauritius 

Mauritius Tax System Overview

Mauritius operates a residence-based tax system with low and simplified rates. It is known for its investor-friendly tax regime, no capital gains tax, and extensive double tax treaties. Tax rates  for resident  were  flat rate 10%a and Non-resident its 15%.taxable income incudes salary ,rent and interests .Also there is no tax on Capital Gains 

In case of corporate taxation 15% flat rate and Global Business Companies may enjoy special regimes. Foreign income taxed if received in Mauritius also it is having almost 45+ double tax treaties in which India is a member

Singapore 's tax system Overview

Singapore 's tax system is designed to be competitive and business-friendly, with low tax rates and various incentives to attract investment. Singapore follows a progressive tax system, where higher earners pay a higher percentage of tax.

 The highest personal income tax rate is 24% for incomes exceeding SGD 1,000,000.Their taxable incomes include salaries and wages, bonus and commissions, directors fee rental income and some categorized pensions.

INDIVIDUAL INCOME TAX
Feature	Mauritius	Singapore
Tax Residency Criteria	Resident	Resident
Tax Rate (Residents)	Flat 10% (from 1 July 2023)	Progressive: 0% to 24%
Tax Rate (Non-Residents)	15% or flat 10% on specific income types	Flat 15% or resident rates (whichever is higher)
Taxable Income	Worldwide income (residents); Mauritius-source (non-res.)	Singapore-source only; foreign income taxed if received in SG
Tax Deductions/Reliefs	Basic personal reliefs only	Wide range: earned income, spouse, child, CPF, etc.
Capital Gains Tax	No	No
Social Security Contributions	Compulsory National Pension Fund	CPF (only for citizens/PRs); not applicable to foreigners

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🔹

 2. CORPORATE INCOME TAX

Feature	Mauritius	Singapore
Corporate Tax Rate	15% standard Effective rates can be reduced to 3% or lower (partial exemption, tax credits)	17% standard Effective rates lower due to partial exemptions
Tax Residency	Company controlled and managed in Mauritius	Company managed and controlled in Singapore
Scope of Tax	Worldwide income (residents); Mauritius-source (non-res.)	Singapore-source income; foreign income taxed if remitted
Capital Gains Tax	No	No
Withholding Tax (Dividends)	None	None
Withholding Tax (Interest/Royalties)	15% (some treaties lower this)	15% on interest, 10% on royalties (treaty relief available)
Dividend Tax	No (Mauritius has no dividend distribution tax)	No (one-tier tax system)
Double Taxation Relief	Yes (via tax treaties and unilateral relief)	Yes (tax treaties + unilateral relief)

3. BUSINESS ENVIRONMENT AND COMPLIANCE

Feature	Mauritius	Singapore
Ease of Doing Business	High (not as competitive as Singapore)	Consistently ranked among top globally
Filing Frequency	Annual return + tax return	Annual tax return; GST returns (quarterly/monthly)
Audit Requirements	Exempt under certain thresholds	Required if turnover > SGD 10 million
GST/VAT	15% VAT	9% GST (as of Jan 2024)
Incentives & Tax Holidays	Tax holidays for global business companies	Pioneer incentives, IP incentives, Start-up exemptions

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4. SUMMARY

Category	Mauritius	Singapore
Tax Rates	Lower for individuals (flat 10%)	Lower effective corporate tax via exemptions
Tax System	Simple, flat rates	Progressive and incentive-driven
International Treaties	Over 45 DTAs	Over 90 DTAs
Best for	Offshore structures, low-income individuals	Regional HQs, start-ups, tech companies

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Conclusion

• Mauritius is more beneficial for offshore structuring and high-net-worth individuals seeking flat tax rates and simplicity.

• Singapore is better for operational headquarters, start-ups, and businesses seeking international credibility, legal robustness, and tax incentives.

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