Remember that time when you first thought of your business idea? There were butterflies in your stomach, and your heart somersaulted at the possibility of creating something from the depths of your mind and sharing it with the entire world. Well, before you put it out there you have to legitimise it. You have to make your business recognised, primarily in the eyes of the government (just like the birth of a new-born). It can seem like a tedious task, but with Kool Kanya’s 15-step guide, registering your business in India is a smooth drive.
Here’s a step-by-step guide to register your business in India.
Get Your Director Identification Number
The first step is to get the provisional Director Information Number, aka DIN number. It is a simple process, and you can do this by filling an online application form. Sign the printed copy of the application and send it to the ministry for approval along with proof of identity and address. Upon verification and approval, a permanent DIN is issued. Indian citizens are required to have a PAN number, and Passport is mandatory for foreign nationals.
Obtain A Digital Signature Certificate
Obtain a Digital Signature Certificate from the authorised agencies. You can use this digital signature for various online transactions in India, such as filing your Income Tax, Annual Return, E-Tenders, and more. As a director, submit the application form along with your proof of identity and address. There are three types of digital signatures, so make sure you have picked the right one.
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Secure Your Company Name
Name your company and get it electronically approved by the Ministry of Corporate Affairs. Check the availability of the desired name on their website and select your top six choices. Once approved, you’ve officially named your company.
Memorandum of Association (MOA) and Articles of Association (AOA) are essential internal documents. The MOA of a company defines the constitution and the scope of powers of the company, whereas the AOA specifies the internal regulations of the company. Pay keen attention to crafting the two. You will need those as attachments for the various registration process.
Get The Certificate Of Incorporation
The INC-29 is a critical form that will grant you the incorporation certificate. It includes several pieces of information and forms that can be electronically filed on the website of the Ministry of Company Affairs. Ensure that your request for stamping the incorporation certificate is accompanied by unsigned copies of the MOA, AOA and payment receipt. The certificate is sent automatically to the registered office of the company by registered mail. Once you have stamped, signed, and embossed copy of incorporation certificate, you can then sign the MOA and AOA.
Acquire Your Company Permanent Account Number
Obtain a Permanent Account Number (PAN) for your company from an authorised franchise or agent appointed by the Income Tax Department. The application can also be submitted online, but the documents still need to be physically sent for verification. Upon approval, a printed PAN card would be delivered to your registered address.
Make A Seal For Your Company
Create a seal for your company. You will need a seal to issue share certificates and other documents.
Obtain a Tax Account Number
The application for Tax Account Number (TAN) must be filed and submitted at TIN Facilitation Center. After verification of the application, it is sent to the Assessing Office of Income Tax Department of your state and TAN is issued.
Open A Current Account
Open a current account in the bank for your company. Get the licenses from the different authorities and choose the account type and bank of your choice.
Obtain Udyog Aadhaar Registration
Udyog Aadhaar Memorandum is an initiative of the Ministry of Micro, Small and Medium Enterprises, Government of India with the objective to simplify the registration process for entrepreneurs and promoting ease of doing business. Industries registered with Udyog Aadhar become entitled to receive the benefits of several government schemes such as subsidies and easy loan approvals. You can do the Udyog Aadhar Registration online for no cost through their website.
Obtain Shops & Establishments Act License
Register your establishment within the Shops & Establishments Act within 30 days of opening the business. Submit a statement containing the employer’s and establishment’s information to the local shop inspector with the applicable fees.
Register Your Goods and Service Tax
Every business whose annual turnover exceeds Rs. 20 lakh needs to register for GST. You can do this by following the procedures on their web portal. GST has replaced the previous indirect taxes levied by state and centre and hence all the businesses are required to register.
Obtain Professional Tax Registration
Every employer is liable to taxation and must obtain a certificate of registration from the prescribed authority. Register for GST within 30 days of employing staff in a business. Keep in mind that if you have employees in more than one state, you must register for GST in each state.
Register For Employees’ Provident Fund Organisation
You are required to provide necessary information about your business and your employers to the Employees’ Provident Fund Organisation (EPFO) for allotment of Establishment Code Number. Follow the steps on their website and get your Establishment Code Number.
Acquire Medical Insurance
Employee State Insurance is created by the law under the Ministry of Labour and Employment, Government of India, that provides the employees with a huge variety of medical, monetary and other benefits from the employer. If you have more than 10 employees who have a maximum salary of Rs. 15,000, you have to register for medical insurance. You need to contribute 4% of the total monthly salary payable to the employee while the employee pays 1% every month of the year.
Phew! It wasn’t that difficult, was it? But now that you have crossed the bridge, welcome to the other side. You are now officially a business owner. Just add that title to your name for a bit and savour the moment. Now take a deep breath because the real work begins. In our next guide, we will tell you how to apply for a loan for your business. Until then, be your own cheerleader and move forward with happy strides.
If you are looking for more details on making a business plan, check out our guide: How To Make A Successful Business PlanIf you are looking for more details on making a business plan, check out our guide: How To Register Your Business
Research Credit: Devika Awasthi and Rasika Rane
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