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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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 Policies

✅ Tax Benefits – Startups recognized by DPIIT can avail a 3-year tax holiday under Section 80-IAC of the Income Tax Act.
✅ Fast-Track Patent & Trademark Registration with 80% rebate on patent filing fees.
✅ Winding Up Process – Recognized startups can opt for fast-track exit within 90 days under the Insolvency & Bankruptcy Code (IBC), 2016.

A startup will lose its startup status if:
❌ It crosses 10 years from incorporation.
❌ Its turnover exceeds ₹100 crore in any year.
❌ It ceases to work towards innovation or scalable business growth

Kerala specific initiatives:-

Kerala Startup Mission (KSUM) is the central agency of the Government of Kerala dedicated to fostering entrepreneurship and nurturing startups within the state

• KSUM oversees approximately 40 incubators across Kerala, collectively providing nearly 1 million square feet of incubation space. These incubators offer essential infrastructure, mentorship, and resources to startups
• KSUM has set up Fab Labs equipped with advanced digital fabrication tools, enabling startups to rapidly prototype and develop products. Notably, the Super Fab Lab in Kochi, established in collaboration with MIT, is the first of its kind outside the USA, offering enhanced capabilities for hardware innovation

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 for SC/ST and female students.

5. Regulatory Oversight

• A government-established regulatory body will ensure quality standards in teaching, research, and development.

Pre Conditions:

• 10 Acre land
• endowment fund of 25 Crore is required
• carpet area - minimum twenty-four thousand square metres 

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:

1. Has not completed 10 years from its date of incorporation.
2. Is registered as a Private Limited Company, LLP, or Registered Partnership Firm in India.
3. Has annual turnover not exceeding ₹100 crore in any financial year since incorporation.
4. 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.
5. 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 Gains Tax Exemption: Exemption on long-term capital gains if reinvested in eligible funds.

2. Compliance Relaxations

✅ Self-Certification for Compliance: Startups can self-certify compliance for labor and environmental laws for up to 5 years.
✅ No Inspection for First 3 Years: Exempt from labor inspections (except in cases of specific complaints).

3. Funding Support & Government Grants

✅ Fund of Funds Scheme: ₹10,000 crore corpus managed by SIDBI to provide funding support to startups via SEBI-registered Venture Capital (VC) firms.
✅ Credit Guarantee Fund: Government-backed collateral-free loans for startups under CGTMSE scheme.
✅ Startup India Seed Fund Scheme (SISFS): Grants up to ₹50 lakh for early-stage startups for prototype development and proof of concept.

4. Faster Patent & Trademark Filings

✅ 80% Rebate on Patent Filing Fees: Startups get a significant rebate on intellectual property registration costs.
✅ Fast-Track Patent Examination: Startups can get patents examined in an expedited manner.

5. Ease of Public Procurement & Tenders

✅ Exemption from Earnest Money Deposit (EMD): DPIIT-recognized startups can participate in government tenders without EMD.
✅ No Prior Experience Required: Startups can apply for government projects without needing prior experience or turnover criteria.

6. Easier Winding Up

✅ Fast-Track Exit under IBC: Startups can wind up operations within 90 days under the Insolvency and Bankruptcy Code (IBC).

7. Incubation & Networking Opportunities

✅ Participation in Global & National Startup Events: Startups get access to various networking platforms, summits, and mentorship programs.
✅ Government-Backed Incubators: Startups can benefit from government-supported incubators and accelerators across India.

Conclusion

The Indian government offers significant tax, funding, regulatory, and operational benefits to startups. Registering under the Startup India program can help entrepreneurs scale their businesses faster with easier compliance and financial incentives