How to setup business in India has been originally published on: How to For India
India’s economic development has been leaping beyond boundaries. Once upon a time U.S. was the dream destination for workers and employees. Many IT companies are competing to establish their workspace in India. Employment opportunities are greatly increasing in India.
GENERAL MEASURES TO REMEMBER AND FOLLOW:
1) Obtain DIN (Director Identification Number): The DIN must be obtained from the Ministry of Corporate Affairs (MCA) .The application form can be taken from the online source. The form must be filled and attached with the,
Identity proof (any one among this: voter id, driving license, PAN card)
Residence proof (any one: Passport, Electricity bill, Ration card, Bank statement)
The authorities of the MCA will make a check of the proof (Average cost=Rs.100).
2) Next step is to obtain Digital signature certificate online authorized by MCA. (Average cost=Rs.400 to 2650)
3) Register company name: The Company’s name must be approved with the government. The approval form must be filled by the applicant online in the MCA website. Six names to be suggested. The names are compared with the existing companies and a distinct one is selected. (Average cost=Rs.500)
4) Stamp the company’s documents: According to Indian Stamp Act, the memorandum and articles of association must be signed by Superintendent of Stamps or to the authorized bank. Cost is levied accordingly. (Average cost=Rs.300+ amount depending upon capital)
5) Get certificate of incorporation: Registrar of companies must provide the certificate of incorporation. All the necessary documents must be submitted along with the Registration amount, which is calculated based on estimated capital. (Average cost=Rs.15000)
6) A seal must be for the company to share certificate and other documents. (Average cost=Rs.350)
7) Obtain PAN (permanent account number): Payment of income taxes requires registration with National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) Investors Services Ltd to obtain a Permanent Account Number (PAN).Regular payment of income tax is necessary for the country’s development. This is an important step. (Average cost=Rs.70)
8) Obtain TAN (tax account number): The tax account number is extremely necessary. It can be obtained from online NSDL website. Failure to obtain TAN can bring a penalty of Rs.10000. (Average cost=Rs.55)
9) Registration with the office of Inspector: The number of employees and their details must be clearly stated to the Inspector of the area. The Registration fee is levied depending upon the number of employees according to the establishment act. (Average cost=Rs.2000)
10) Approval from Sales Tax Officer: All the necessary documents including the PAN, TAN, Memorandum must be submitted to receive the VAT from the Sales Tax Officer. (Average cost=Rs.5000)
11) Obtain registration for the payment of profession tax: All workers apart from government officials must register with the prescribed authority to pay the profession tax. This is extremely essential according to Professional tax act.
12) For employing more than 20 employees: If there will be more than 20 employees working in the company, then the company must be registered with the employees provident fund organization to get the social security number. Medical insurance is done for the welfare of the employees and the organization.
Therefore, setting up a business in India might involve tedious steps. Nevertheless, India is not only a lovely country to live in but also to work. So please follow these proper steps to establish a successful business in India.
