The Lowdown of Initiating a Business in India:
With India being a developing economy, it offers tremendous opportunities to budding entrepreneurs. You can choose any industry type from the myriad of options available in India.
Here are a few pointers that you can look at for setting up your own venture:
- Obtain a DIN (Director Identification Number): Fill out this form online. You can find this on the web site of Corporate Ministry affairs: www.mca.gov.in. Later send it for verification with the appropriate identity and address documents.
- Get a digital signature certificate online: This is useful if you are going to be using the electronic filing system.
- Register your company name with the ROC (Registrar of Companies): You need to electronically file the prospective names of the company on the MCA 21 web site. Here you can submit from 3–6 names that you desire. You can also check the availability of names through this web site. It takes about 2–3 days for this process to be completed and approved by the ROC subject to your company name adhering to the company act.
- Obtain a stamp for the company documents: You need to have your incorporation documents signed by the superintendent or an authorized bank. This should be accompanied by copies of the association articles, payment receipts, and memorandum. The stamped papers are then returned to you showing that the stamp duty that is paid.
Once the forms are duly stamped, they are to be signed by the promoters with a description of the activities and purposes of the organisation. This activity needs to be witnessed.
- Get the certificate of incorporation: The forms 1, 18, and 32 on the MCA web site need to be filled out for this. You also need to attach scanned samples of the directors, the memorandum, and the article's association along with these forms.
The payment can be made by either the online or offline modes. Once approved, the certificate of incorporation is sent to the registered office of the company.
- Obtain a seal and PAN (Permanent account number): Any corporation needs to quote his PAN no. for payment and tax deductions. The PAN can be obtained by an approved National Securities Depository Services Ltd. or UTI sources. The PAN consists of a 10-digit number issued by the assessing officer of the Department of Income Tax.
The seal will prove beneficial while issuing share certificates and other official documents.
- Get a tax account number: The TAN or the Tax deduction account number is essential for tax deductions and collections. This can be obtained from the Department of Income Tax and is required for enabling tax reductions at the source. The application for the TAN requires you to fill out form 49B and submit it to any TIN approved centers to get TDS returns online.
- Register with the Inspectors Office, Shops, and Establishment Act and Sales Tax officers to enroll for VAT. Lastly, register for the profession tax, employee's Provident Fund Organisation, and medical insurance.
These are the steps one should look to follow to get the business venture registered and adhere to all the standards of establishing a new company in India.