The Resident Indians, NRIs and foreigners who want to start their own Business would have the question, from where and how to start it.
I thought therefore to present the procedure with checklist on how to Start Business in India. These are standard procedures and are applicable in most cities in India; however, in some cities there may be a change or additional processes that one has to find out.
How to Register a Company in India – The Process:
To obtain director identification number (DIN)
This is the unique identification number for an existing director or a person intending to become the director of a company.
To obtain digital signature certificate
This is the certificate issued for the new electronic filing system under MCA 21; the applicant must obtain a Class-II Digital Signature Certificate.
To reserve the company name online with the Registrar of Companies (ROC)
Once the name of the company is decided, the availability of the same to be checked and if the proposed name is available and conforms to the naming standards established by the Company Act. It has to reserve with ROC.
To Register and obtain the Certificate of Incorporation from the Registrar of Companies
Once the name is reserved then the procedure to incorporate the company to be started which involves many procedures and required various documents.
Make a company seal
This is required once the company is incorporated to issue share certificates and other documents.
Obtain a Permanent Account Number (PAN)
As per the Income Tax Act, 1961, each person must quote his or her Permanent Account Number (PAN) for tax payment and many other purposes including opening an account with bank.
To obtain a Tax Account Number (TAN)
This is the Tax Account Number (TAN) is a 10-digit alphanumeric number required of anyone responsible for deducting or collecting tax.
To open Current Account with Bank
The Bank Account to be opened with any bank of choice preferably with the bank that accepts are statutory payments in the name of the company.
To Register the Office under Shops, and Establishment Act with Municipal Corporation.
According to Section 7 of the Bombay Shops and Establishments Act, -(1948), the establishment must be registered. This involves procedure, documents and inspection before issuing the license.
To obtain Value Added Tax (VAT)
Since April 1, 2005, the sales tax was replaced by the VAT, which requires registration. This is required to start your product sale.
To obtain Service Tax Number
This is required to start your service sale
To Register for Profession Tax ( PT )
This is required for company, every director of the company and for the deduction of the PT from employee’s salary.
To Register for MLWF
This registration is required for the Maharashtra Labour Welfare Fund
To register with employees’ Provident Fund
This is required under Employees Provident Funds and Miscellaneous Provisions Act (1952) applies to an establishment, employing 20 or more persons.
To Register for the Employees’ State Insurance Corporation
This is required to cover every employee under insurance purposes whereby the medical benefits are given, applies to an establishment, employing 20 or more persons.
To obtain Trade Mark registration
This is required to protect your name, logo and brand from the infringement.
Company Registration in India – Any other registration, license depending on the nature and size of the business for example IEC ( Import Export Code) for import & export, SME registration for small and medium enterprises.