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Showing posts from March, 2025

Startups - what you need to know?

  Startups in India can be registered under the Companies Act, 2013 in the following forms: Private Limited Company (PLC) [Most Preferred] Limited Liability Partnership (LLP) One Person Company (OPC) A startup is usually incorporated as a Private Limited Company (PLC) due to benefits such as limited liability, easy fundraising, and better credibility . Definition of a Startup (As per DPIIT & Companies Act) A company is recognized as a startup if: It has been incorporated for less than 10 years . Its annual turnover does not exceed ₹100 crore in any financial year. It is working towards innovation, development, improvement of products/processes/services, or has a scalable business model with high growth potential . It is not formed by splitting up or reconstructing an existing business . Recognition is provided by the Department for Promotion of Industry and Internal Trade (DPIIT) . Benefits for Startups under the Companies Act & Government Po...

The Kerala State Private Universities (Establishment and Regulation) Bill, 2025

  The Kerala State Private Universities (Establishment and Regulation) Bill, 2025 Passed by Kerala Government on 25/03/2025. Salient Features:- 1. Establishment of Private Universities Allows private entities and individuals to establish universities in Kerala. Universities can operate as multi-campus institutions within the state. 2. Governance Structure Governing Council : 12 members, including three government nominees. Executive Council : 9 members, with one government representative, responsible for managing funds and property. Academic Council : Advises on academic matters, with three government representatives. 3. Seat Reservation for Kerala Students 40% of total seats in each course must be reserved for students from Kerala. Within this, reservations for SC/ST/OBC students apply as per state policies. 4. Students’ Council A Students’ Council is mandated, headed by the Pro Vice-Chancellor. Includes 10 elected student members, with representation ...

What is a Start up In India and what are there benefits in India?

In India the Department for Promotion of Industry and Internal Trade (DPIIT) defines a startup as an entity that: Has not completed 10 years from its date of incorporation. Is registered as a Private Limited Company, LLP, or Registered Partnership Firm in India. Has annual turnover not exceeding ₹100 crore in any financial year since incorporation. Is working towards innovation, development, or improvement of products, processes, or services , or has a scalable business model with a high potential for employment or wealth creation. Is not formed by splitting up or reconstructing an existing business. Benefits for Startups in India 1. Tax Benefits & Financial Incentives ✅ Income Tax Exemption (Section 80-IAC): Recognized startups can claim a 100% tax exemption on profits for any 3 consecutive years out of 10 . ✅ Angel Tax Exemption (Section 56(2)(viib)): Startups are exempted from taxation on investments above fair market value received from investors. ✅ Capital ...

Whether REIT Investment is lucrative in India??

 Comparison of the dividend yields of publicly listed Real Estate Investment Trusts (REITs) in India: Answer is yes. 90% Income has  to be distributed that makes a regular yield for the investor and clubbed with capital appreciation. REIT Name Dividend Yield (%) Reasons for Yield Embassy Office Parks REIT 6.5% to 7.81% Stable rental income from premium office spaces, long-term lease agreements, and high-quality tenants. Mindspace Business Parks REIT 5.7% to 7.5% Diversified portfolio in IT parks and SEZs, strong presence in major IT hubs, attracting tech companies. Brookfield India REIT 7.0% to 8.02% Backed by a global asset management firm, diversified assets across key cities, targeting growth opportunities. Nexus Select Trust REIT 7.2% Focus on retail malls, benefiting from increasing consumer spending and retail sector growth

REITS IN INDIA

Real Estate Investment Trusts (REITs) are investment vehicles that enable individuals and institutions to invest in income-generating real estate assets without directly owning physical properties. SEBI (Securities and Exchange Board of India) introduced the regulatory framework for REITs in 2014, with the first Indian REIT launching in 2019. Since then, the REIT market in India has evolved, offering investors an alternative asset class with stable returns and liquidity. Growth and Market Overview The Indian REIT market has gained traction over the past few years, driven by increasing urbanization, demand for commercial real estate, and favorable regulatory reforms. As of 2024, the Indian REIT market has witnessed the launch of multiple REITs, primarily focused on commercial office spaces. The sector is supported by strong institutional demand, growth in the IT sector, and a rising need for high-quality office spaces in major metropolitan cities. Key Benefits of Investing in REITs Dive...

SM REIT

SM REIT  in India are in the early stages of development. The Securities and Exchange Board of India (SEBI) introduced regulations for SM REITs in 2023 to regulate fractional ownership platforms and enhance transparency in real estate investments. 1. Eligibility & Structure Minimum Asset Value: ₹50 crore (as opposed to ₹500 crore for regular REITs). Minimum Issue Size: ₹25 crore for public issuance. Sponsorship: At least one sponsor required, holding a minimum of 15% in the SM REIT for at least 3 years. Trust Structure: Must be set up as a trust under the Indian Trusts Act, 1882 and registered with SEBI. Management: Managed by a SEBI-registered Investment Manager . Trustee: A SEBI-registered Debenture Trustee must be appointed. 2. Investment Criteria Minimum Investment in Completed & Income-Generating Assets: 80% of the total asset value. Under-Construction & Development Projects: Max 20% of the total value . Ownership: Directly or through Special...