understanding the needs of small businessmen

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Our PM rightly said
"A poor man connected to the ground has a better understanding of things than those with 50 page profiles and degrees"
I do not know where it applies, but with some confidence I can say that one of the opt areas this applies is in company affairs. Rules are framed by qualified charted accountants and always the keep the interest of their profession at the top and frame rules and procedures in such way that these are auditor friendly than user friendly.
This applies to small businessmen with limited resources and as one MSME friend told agriculturists toil for traders and brokers and we small businessmen sweet for auditors and accountants.
Small business men india which is not developed do not know LLP and other nuances. They know after partnership only Private ltd. To certain extent the general recognition is also in the same pattern. When one goes for Private limited statutory requirement of auditor, frightening procedure on meetings and It return.
All these procedures serve none and control nothing except to create an avenue for auditors to make money by producing nothing tangible.
In one stroke this can be simplified and help the businessman to establish.
No returns and no meetings and procedures till company's turn over reaches 25 lacs It return can be submitted by director without auditor.
Each company may be asked to remit 1000 Rs yearly with a declaration that company is active so that revenue to govt is not affected.
Thousands of MSMEs and small businessmen who are silently suffering this menace would thank the govt for the right reform at right time and of course the govt would become more popular govt understanding popular people from their angle.
The Petition was also marked to:
 - Narendra.bhola@mca.gov.in
Completely agree. These Policies of the Govt., is not only harming small Businessman but also harming well experienced Technocrats entreprenuers who are educated in Engineering and Doctor's as well especially young to the advantage of C.A's and Govt. Officials. The best Policy is to do away with Income Tax, which will boost the Economy and Buzinesses more  
Jun 02
Of course the liability can be reached out the door of the company by the way of wrong maintenance of accounts more  
May 29
LLP or partnership companies registered under MCA should be limited to submission of annual minimum fee when there is no substantial activities in initial period of say 3 or 5 yrs of small business /startup company. Earlier removal of such Companies for not submitting the regular reports by Auditors should be reviewed and given a chance to revive small startups without an gainful income initially and not afford time to get Audit reports as such. They are not benami entities but did not submit reports during first 1 - 2 yrs for lack of understanding and own financial issues. more  
May 28
I am agree with you more  
May 28
Dear Mr. Venkataraman, At the outset the rules of either private or public limited companies are framed by Central Govt and administered by Company Law Board which is a quasi judicial body. The broad purpose of having annual audit by an audit firm is to ensure all financial transactions of a company are within the framework of accounting rules and standards which is monitored by CLB. Now, the next question is why the audit? The liability of the owners of such companies are broadly limited to the value of their shares and as such the financial statements are necessary to be audited by an independent person who is aware of the accounting rules and standards. In case of proprietorship or partnership, the liability of the owners are unlimited and so there is no need for an independent audit. For example, a supplier has supplied goods on credit and did not get his payment. In case of proprietorship or partnership, the supplier can recover from the owner which is not possible for supply to a limited company. There are many more advantages or disadvantages but the major difference is the limitation of liability. more  
May 28

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