A
19 termsAOA - Articles of Association
A document containing rules and regulations for the internal management of a company.
Authorized Capital
The maximum amount of share capital a company is authorized to issue to shareholders.
AGM - Annual General Meeting
A mandatory yearly meeting of a company's shareholders.
Alternate Director
A director appointed to act in place of an original director who is absent for 3+ months.
Additional Director
A director appointed by the board to fill a vacancy or add expertise.
Associate Company
A company in which another company has significant influence but not control.
Angel Tax
Tax on premium received by unlisted companies on issue of shares.
Advance Tax
Income tax paid in advance in installments during the financial year.
Assessment Year
The year in which income earned in previous year is assessed and taxed.
Audit
Independent examination of financial statements by a qualified auditor.
Advance Ruling
Binding decision by tax authority on tax liability before transaction is undertaken.
Affidavit
A written statement confirmed by oath or affirmation, for use as evidence in court or for official purposes.
Apostille
A certificate that authenticates the origin of a public document for use in another country that is a member of the Hague Convention.
Arbitration
A private dispute resolution process where parties agree to have their dispute decided by an impartial arbitrator.
Anticipatory Bail
Pre-arrest legal protection granted by court when a person apprehends arrest for a non-bailable offense.
Advance Tax
Income tax paid in advance during the financial year on estimated income, also known as pay-as-you-earn tax.
Amortization (Tax)
Systematic allocation of the cost of intangible assets over their useful life, similar to depreciation for tangible assets.
API - Application Programming Interface
A set of protocols and tools that allows different software applications to communicate and exchange data with each other.
Artificial Intelligence (AI)
Simulation of human intelligence processes by computer systems including learning, reasoning, and self-correction.
B
9 termsBoard Resolution
A formal decision made by the board of directors of a company.
Board Meeting
A meeting of the board of directors to discuss and decide company matters.
Book Profit
Net profit as per profit and loss account adjusted for MAT purposes.
Bail
The temporary release of an accused person awaiting trial, often on security given to ensure their appearance in court.
B2B - Business to Business
Commercial transactions between two businesses, such as manufacturer to wholesaler or wholesaler to retailer.
B2C - Business to Consumer
Commercial transactions between a business and individual consumers who are the end-users of products or services.
Burn Rate
The rate at which a company spends its cash reserves to fund operations before generating positive cash flow.
Blockchain
A decentralized, distributed digital ledger that records transactions across multiple computers in a secure, tamper-resistant way.
Backend Development
Development of server-side logic, databases, and application architecture that powers the frontend.
C
26 termsCIN - Corporate Identity Number
A unique 21-digit alphanumeric code assigned to every company incorporated in India. Think of it as a company's "birth certificate number" that stays with it throughout its existence.
Chairman
The presiding officer of a company's board or general meetings.
Casual Vacancy
A vacancy in the office of a director occurring due to death, resignation, or disqualification.
Cost Audit
Verification of cost records maintained by specified companies.
Company Secretary
A professional responsible for ensuring company compliance with laws.
Chartered Accountant
A professional accountant qualified to audit financial statements.
Cost Accountant
A professional specializing in cost and management accounting.
CEO - Chief Executive Officer
The highest-ranking executive responsible for overall company operations.
CFO - Chief Financial Officer
Senior executive responsible for financial planning and management.
Composition Scheme
Optional scheme with lower GST rates and simpler compliance.
Current Ratio
A liquidity ratio that measures a company's ability to pay short-term obligations.
Cash Flow
The net amount of cash being transferred into and out of a business.
Capital Expenditure (CapEx)
Funds used by a company to acquire, upgrade, or maintain long-term assets.
CAGR - Compound Annual Growth Rate
The mean annual growth rate of an investment over a specified time period longer than one year.
Caveat
A formal notice or warning that a person files with a court to prevent any action or order being passed without hearing them.
Charge (Legal)
A security interest created over assets to secure repayment of a debt, without transferring ownership.
Conciliation
A voluntary dispute resolution process where a neutral conciliator assists parties in reaching a mutually acceptable settlement.
Cognizable Offense
A serious offense for which police can arrest without a warrant and investigate without court permission.
Capital Gains
Profit arising from the sale or transfer of a capital asset such as property, shares, jewelry, or mutual funds.
Carry Forward of Losses
Provision allowing taxpayers to carry forward unadjusted losses to future years for set-off against future income.
C2C - Consumer to Consumer
Commercial transactions between individual consumers, typically facilitated by a third-party platform or marketplace.
Churn Rate
The percentage of customers who stop using a company product or service during a specific time period.
Customer Acquisition Cost (CAC)
The total cost of acquiring a new customer, including marketing, sales, and related expenses divided by the number of new customers.
Cap Table (Capitalization Table)
A spreadsheet or table showing the equity ownership capitalization for a company including shares, options, and valuations.
Cloud Computing
Delivery of computing services including servers, storage, databases, and software over the internet.
CI/CD - Continuous Integration/Continuous Deployment
Automated pipelines that build, test, and deploy code changes to enable frequent, reliable software releases.
D
21 termsDIN - Director Identification Number
A unique 8-digit identification number assigned to every director of an Indian company. Think of it as a director's "lifetime ID card" that stays with them forever.
DSC - Digital Signature Certificate
An electronic signature used to sign documents and filings with MCA and other government portals.
DIR-3 KYC
Annual KYC verification required for all directors holding a DIN.
DPIN - Designated Partner Identification Number
Similar to DIN but for Designated Partners of an LLP.
Dividend
Distribution of a portion of company's profits to its shareholders.
Director Removal
The process of removing a director from the board before their term expires.
Disqualification
Circumstances that make a person ineligible to be appointed or continue as director.
Dormant Company
A company formed for future projects or holding assets but currently inactive.
DPIIT - Department for Promotion of Industry and Internal Trade
A department under Ministry of Commerce that promotes industry and start-ups.
Digital Signature Certificate (DSC)
Electronic signature used for secure online document filing.
Debt-to-Equity Ratio
A measure of the extent to which a company is financing its operations through debt versus equity.
Defendant
The party against whom a lawsuit is filed or criminal charges are brought.
Depreciation (Tax)
Reduction in the value of tangible assets over time, allowed as a deduction from business income under the Income Tax Act.
D2C - Direct to Consumer
Business model where manufacturers or brands sell directly to consumers, bypassing traditional intermediaries like retailers and wholesalers.
Due Diligence
Comprehensive investigation and verification of a business before signing a contract or making an investment.
Data Room (Virtual Data Room)
A secure online repository for storing and sharing confidential documents during due diligence or M&A transactions.
Dilution
The reduction in ownership percentage of existing shareholders when new shares are issued to investors or employees.
Decryption
The process of converting encrypted data back into its original, readable form using the appropriate key.
Database
An organized collection of structured data stored electronically, allowing efficient retrieval, management, and updating.
Data Warehouse
A centralized repository that stores large volumes of structured data from multiple sources for analysis and reporting.
DevOps
A set of practices combining software development and IT operations to shorten development lifecycle and provide continuous delivery.
E
8 termsEGM - Extraordinary General Meeting
A meeting called for urgent business that cannot wait until the next AGM.
E-way Bill
Electronic document for movement of goods worth ₹50,000+.
E-Sign - Electronic Signature
Electronic authentication method using Aadhaar for signing documents digitally.
EBIT - Earnings Before Interest and Taxes
A measure of a company's profitability that excludes interest and income tax expenses.
EBITDA - Earnings Before Interest, Taxes, Depreciation, and Amortization
A measure of profitability that excludes interest, taxes, depreciation, and amortization.
Exit Strategy
A plan for how founders and investors will realize returns on their investment, typically through acquisition, IPO, or buyback.
Equity Stake
The percentage of ownership in a company represented by shares held by an investor, founder, or employee.
Encryption
The process of encoding information so that only authorized parties can access it, protecting data confidentiality.
F
9 termsFinancial Year
The 12-month period for which accounts are maintained (April 1 to March 31).
Form 16
TDS certificate issued by employer to employees.
Form 16A
TDS certificate for non-salary payments like interest, rent, commission.
Form 26AS
Annual tax credit statement showing TDS, TCS, and advance tax paid.
Free Cash Flow (FCF)
Cash available to a company after accounting for capital expenditures and working capital needs.
Fixed Capital
The portion of capital invested in long-term assets of a business.
Financial Year (FY)
The 12-month period from April 1 to March 31 during which income is earned by individuals and businesses.
Frontend Development
Development of the user-facing part of websites and applications that users interact with directly in their browsers.
Full Stack Development
Development encompassing both frontend and backend, handling all aspects of web application development.
G
9 termsGST - Goods and Services Tax
India's comprehensive indirect tax system that replaced multiple taxes with a single unified tax. Think of it as a "one nation, one tax" system.
GSTIN - Goods and Services Tax Identification Number
A unique 15-digit identification number assigned to every GST registered taxpayer.
GeP - Government e-Marketplace
An online platform for government procurement of goods and services.
GSTR-1
Monthly or quarterly return for outward supplies (sales).
GSTR-3B
Monthly self-declared summary return for GST liability.
GSTR-9 - Annual Return
Annual consolidated return under GST.
GST Council
Constitutional body for making GST policy decisions.
Gross Margin
The percentage of revenue remaining after deducting cost of goods sold.
Goodwill
An intangible asset that arises when a company acquires another business for more than the fair value of its net assets.
H
3 termsI
10 termsIndependent Director
A non-executive director who is not related to the company or its promoters.
Income Tax
Direct tax levied on income earned by individuals and entities.
Internal Audit
Independent appraisal of operations by internal staff or external professionals.
ITR - Income Tax Return
Form filed with tax authorities reporting income and tax liability.
Input Tax Credit (ITC)
Credit for tax paid on inputs used for business purposes.
ISO Certification
International standards certification demonstrating quality management systems and processes.
IRR - Internal Rate of Return
The discount rate that makes the NPV of all cash flows equal to zero.
Intangible Assets
Non-physical assets that provide economic value to a business.
Injunction
A judicial order that requires a person to do or refrain from doing a particular act.
Indexation
Method of adjusting the purchase price of an asset using Cost Inflation Index to account for inflation when calculating capital gains.
L
8 termsLLP - Limited Liability Partnership
A modern business structure combining partnership flexibility with company-like limited liability protection.
LLPIN - Limited Liability Partnership Identification Number
A unique 7-digit identification number assigned to every LLP registered in India.
Liquidator
A person appointed to wind up a company's affairs.
LUT - Letter of Undertaking
Document for exporting goods/services without paying IGST.
Lien
A legal right or claim against property that serves as security for a debt or obligation until it is paid.
Lifetime Value (LTV)
The total revenue a business can expect from a single customer account throughout the business relationship.
Liquidation
The process of winding up a company by selling assets, paying creditors, and distributing remaining funds to shareholders.
LLM - Large Language Model
AI models trained on vast amounts of text data that can generate human-like text and understand context.
M
11 termsMCA - Ministry of Corporate Affairs
The government ministry responsible for corporate regulation and policy making in India.
MOA - Memorandum of Association
A legal document that defines the company's relationship with the outside world.
Minutes
A written record of the proceedings and decisions of a meeting.
Managing Director
A director entrusted with substantial powers of management of the company.
Make in India
An initiative to encourage companies to manufacture in India.
MSME - Micro, Small and Medium Enterprises
Classification of enterprises based on investment and turnover criteria.
MAT - Minimum Alternate Tax
A minimum tax that companies must pay if regular tax is lower due to exemptions.
Mortgage
A transfer of interest in specific immovable property as security for a loan.
Mediation
A voluntary process where a neutral mediator helps parties communicate and negotiate to reach a mutually acceptable agreement.
MVP - Minimum Viable Product
A product with just enough features to satisfy early customers and provide feedback for future development.
Machine Learning (ML)
A subset of AI that enables systems to learn and improve from experience without being explicitly programmed.
N
10 termsNominee Director
A director appointed by financial institutions or investors to safeguard their interests.
NCLT - National Company Law Tribunal
A quasi-judicial body that adjudicates company law matters in India.
NCLAT - National Company Law Appellate Tribunal
The appellate tribunal for appeals against NCLT orders.
Nidhi Company
A non-banking financial company that borrows and lends to its members.
NSIC - National Small Industries Corporation
A government enterprise supporting MSMEs with marketing, technology, and credit.
Net Profit Margin
The percentage of revenue that remains as profit after all expenses.
NPV - Net Present Value
The difference between present value of cash inflows and outflows over time.
Notary Public
A public officer authorized to perform acts in legal affairs, including witnessing signatures, authenticating documents, and administering oaths.
Non-Cognizable Offense
A minor offense for which police cannot arrest without a warrant and need court permission to investigate.
NLP - Natural Language Processing
Branch of AI that helps computers understand, interpret, and manipulate human language.
O
1 termsP
13 termsPAN - Permanent Account Number
A 10-character alphanumeric identifier issued by the Income Tax Department for tax purposes.
Paid-up Capital
The amount of capital actually subscribed and paid by shareholders.
Producer Company
A company formed by primary producers like farmers, artisans, or weavers.
Public Trust
Legal arrangement where property is held by one party for benefit of another, registered under State Trust Acts.
PAT - Profit After Tax
The net profit earned by a company after all expenses including taxes have been deducted.
PBT - Profit Before Tax
Profit earned before deducting tax expenses.
Plaintiff
The party who initiates a lawsuit by filing a complaint with the court.
Petitioner
A person who makes a formal written application to a court, tribunal, or other authority requesting a specific action or order.
Pledge
A bailment of goods as security for payment of a debt or performance of a promise.
Previous Year
The financial year immediately preceding the assessment year, in which income is earned.
Product-Market Fit (PMF)
The degree to which a product satisfies strong market demand, indicating readiness for growth and scaling.
Pivot
A fundamental change in business strategy when the current approach is not achieving desired results.
PaaS - Platform as a Service
Cloud computing model providing a platform allowing customers to develop, run, and manage applications without infrastructure complexity.
Q
2 termsR
10 termsROC - Registrar of Companies
An office under MCA that deals with company registration and compliance monitoring.
Resignation
Voluntary relinquishment of office by a director, auditor, or officer.
Return Filing
Submitting income or tax information to tax authorities in prescribed form.
Reverse Charge Mechanism (RCM)
Liability to pay GST shifts from supplier to recipient.
ROE - Return on Equity
A measure of financial performance calculated by dividing net income by shareholders' equity.
ROA - Return on Assets
A profitability ratio that shows how efficiently a company uses its assets to generate earnings.
ROCE - Return on Capital Employed
A financial ratio that measures a company's profitability and capital efficiency.
Revenue Expenditure
Expenses incurred for day-to-day business operations that provide benefits within one year.
Return of Income Filing
The process of submitting a declaration of income earned and tax paid to the Income Tax Department through prescribed forms.
Runway
The amount of time a company can operate before running out of cash, calculated based on current burn rate.
S
22 termsShare Certificate
A legal document certifying ownership of shares in a company.
Special Resolution
A resolution passed by 3/4th majority of shareholders voting.
Special Notice
A 14-day advance notice required for certain resolutions.
Strike Off
Removal of a defunct company's name from the register of companies.
Small Company
A company with limited paid-up capital and turnover, enjoying exemptions.
Section 8 Company
A company formed for charitable or non-profit purposes.
Subsidiary Company
A company controlled by another company (holding company).
Self Assessment Tax
Balance tax paid by the taxpayer after accounting for TDS and advance tax.
Statutory Audit
Mandatory annual audit of company accounts under Companies Act.
Secretarial Audit
Compliance audit of company secretarial and legal requirements.
SAC Code
Services Accounting Code for classifying services under GST.
Startup India
Government initiative to promote and support startups in India with benefits and incentives.
Settlement Commission
Body for settling tax disputes through mutual agreement between taxpayer and tax department.
Society Registration
Non-profit entity registered under Societies Registration Act for literary, scientific, or charitable purposes.
Share Premium
The amount received from shareholders in excess of the face value of shares.
Stay Order
A court order that temporarily stops or suspends a proceeding, action, or the execution of a judgment.
Summons
A formal court order directing a person to appear before the court or produce documents.
Subpoena
A court order requiring a person to appear as a witness or produce documents in court.
Set Off of Losses
Adjustment of losses from one source of income against profits from another source within the same or different heads of income.
SDK - Software Development Kit
A collection of tools, libraries, and documentation that developers use to build applications for specific platforms.
SaaS - Software as a Service
Software licensing model where applications are hosted by vendors and made available to customers over the internet.
Smart Contract
Self-executing contracts with terms directly written into code that automatically enforce agreements when conditions are met.
T
16 termsTAN - Tax Deduction Account Number
A 10-digit alphanumeric number required for deducting or collecting tax at source.
TDS - Tax Deducted at Source
A system where tax is deducted at the point of payment to ensure timely tax collection.
TCS - Tax Collected at Source
Tax collected by sellers from buyers at the point of sale for certain goods and services.
TAN Number - Tax Deduction and Collection Account Number
An alternate name for TAN, the account number for tax deduction and collection.
Tax Audit
Audit of accounts required under Section 44AB of Income Tax Act.
TRACES
TDS Reconciliation Analysis and Correction Enabling System.
Treasury Stock
Shares that a company has bought back and holds in its own treasury.
Tax Deducted at Source (TDS)
A system where tax is deducted by the payer when making specified payments like salary, interest, rent, or professional fees.
Tax Collected at Source (TCS)
Tax collected by the seller from the buyer at the point of sale of specified goods or services, including foreign remittances.
Tax Refund
Amount returned by the Income Tax Department when taxes paid exceed the actual tax liability of the taxpayer.
Tax Rebate
A reduction in the amount of tax liability directly, applicable on the tax computed before adding cess.
Tax Relief
Provision to reduce tax burden in specific situations like receiving arrears of salary or double taxation of income.
Tax Exemption
Income that is not subject to tax and is excluded from total taxable income under specific provisions of the Income Tax Act.
Tax Deduction
Reduction in taxable income allowed for specific investments, expenses, or contributions made by the taxpayer during the financial year.
Tax Allowance
Specific amounts given by employers to employees for particular purposes, part of which may be exempt from income tax.
Term Sheet
A non-binding document outlining the key terms and conditions of an investment deal between investors and a company.
U
2 termsW
7 termsWhole-time Director
A director who devotes whole of his time to the company's affairs.
Women Director
Mandatory requirement for listed companies and certain public companies to have at least one woman director.
Winding Up
The process of closing down a company and distributing assets to stakeholders.
Working Capital
The capital available for day-to-day operations of a business.
Writ
A formal written order issued by a court commanding someone to perform or refrain from performing a specific act.
Warrant
A court order authorizing police to arrest a person, search premises, or seize property.
Webhook
Automated messages sent from apps when something happens, enabling real-time data transfer between systems.