How to start a business in India?
Putting a step forward to launch a new business is one the biggest challenge because, in the beginning, you have no clue if it will soon reap you out progress in your business or not. Following are some important things that are needed to be kept in mind while registering your business in India:
1. Checking the Company Name Availability
It is very necessary to check for the availability of the proposed name of your company before registering it. To check for the availability, you can simply log in to the MCA 21 website, and once your selected name gets approved, it will appear on the website.
2. Acquiring a Director Identification Number (DIN)
A Director Identification Number (DIN) is one of the most important numbers. It is a special kind of identification number which allotted to the company’s director. You can also obtain a provisional DIN simply by filling a DIN-1 application form online.
Then, you will need to put up that printed and signed version of the form to the ministry, along with attaching your identity as well as address proof in order to get their approval. Once your documents get verified, you will be allotted with a permanent DIN.
3. Acquiring a Digital Signature Certificate
Then comes the digital signature certificate, which is nothing but an electronic key that is issued for validating and identifying certificate holders. It is issued to those agencies that have been registered with the ministry. In order to get approval, the owner is required to submit your application form, identity proof, and permanent address proof at the time of applying for a Digital Signature Certificate.
4. Obtaining an Incorporation Certificate
An incorporation certificate is provided by the Ministry of Corporate Affairs, which is used as proof for the constitution of the company. In order to apply for it, you have to digitally file the following forms on the official website of the Ministry of Company Affairs– e-form 32, e-form 1 and e-form 18.
The company’s registrar has to provide at least one copy for the Memorandum and Articles of Association (MoA and AoA), the consent of directors, and a stamped copy establishing a power of attorney each along with Form 1.
The certificate of incorporation will be automatically sent to the e-mail ID as provided in the information submitted with the forms while incorporating the company.
5. Creating a Company Seal for official documentation
It is necessary for a company to place a company seal on the papers while sharing certificates and other official documents. In order to acquire the company’s official seal, you have to pay as per the total number of words you want to be engraved on it, the number of seals you want to get issued as well as the delivery time of the seals. Also, it is not mandatory for each of the private companies to maintain the company’s seal.
6. Stamping of all Company Documents
The application to have the company’s incorporation documents stamped should keep the unsigned copies of the Memorandum and Articles of Association attached along with the receipt of the payment for the same. And for this, you can also pay online for the stamp duty for such documents to the Registrar of Companies.
As a result, the Superintendent will revert back with the copies-one of which is stamped, signed, and embossed in an official capacity. Then the directors can further sign the MoA and AoA, along with filling all the essential information by their own hands.
7. Acquiring a Permanent Account Number (PAN)
At the time of applying for a PAN, you will have to fill Form 49A. Once you acquire a unique PAN, you will get its physical version delivered at your home via official post. You can also put up your PAN application online on the official website, but then you will be required to post your official documents for final verification.
8. Acquiring a Tax Account Number (TAN)
According to the Government of India, you have to open up your Tax Deduction Account Number or Tax Collection Account Number (TAN), which is nothing but a special number that is issued by the Income-tax department itself to all the entities who are required to either deduct or collect tax at the source.
You will have to fill the form 49B and submit it at a TIN Facilitation Center in order to own this no. Once your application gets verified, it will be forwarded to the Income Tax Department for further pursuing the issuance of TAN. You can fil the application both online and offline through the NSDL website.
9. Obtaining a certificate from the State/Municipal Inspector under the Shops and Establishment Act
You will have to provide a statement including employer/manager’s names, company’s designated name and permanent postal address as well as the business category to the State Shop and Establishment Inspector alongside with the payment of applicable fees. Within one month of the company’s setup, you have to get your firm registered with trade license registration.
10. Applying for GST Registration
GST registration is also very necessary for those who are in search of undertaking the supply of goods and services across states while maintaining an annual aggregate turnover of more than INR 40 lakhs/20 Lakhs. It is one of the most vital steps that have to be prioritized before indulging in other formalities or processes for registering a new company.
11. Obtaining a Profession Tax Certificate from the State Profession Tax Office
Those who aren’t a government servant are liable to taxation and must acquire a registration certificate from the relevant authority. And for that, you have to file Form 1 to the State Profession Tax Office for applying for the Profession Tax Certificate, only if you are applicable.
12. Completing a National Employees’ Provident Fund Registration
Everyone has to provide their worker information to the local Employee Provident Fund Organization (EPFO). Make sure you do it in a prescribed manner in order to get your company allotted with the Establishment Code Number (ECN). It does not necessitate any separate applications to be made by the employees.