There are plenty of entrepreneurs coming up in the country today and a very common question asked by them would be the steps to start a business in India. Most of us are not aware of the procedures that should be followed to start a business until we decide to start our business.
A detailed procedure of how to start a business in India would be useful to a lot of start-ups and new business people who want to set up a business in the country.
The following are the steps you have to follow when you want to start a business in Cochin, Chennai, Bangalore, Mumbai and most of the other cities in India.
Step 1: You have to first get a Director Identification Number (DIN), which is available online from the Ministry of Corporate Affairs portal (National). It would take you only one day to complete this process. The provisional DIN is immediately issued. You have to take a print out of the aopplication form, sign it and send it for approval to the ministry by courier. After this the concerned authority verifies the documents and upon approval issues you a permanent DIN. It will take around 4 weeks to get this. Don’t forget to include identity and address proof, which can be any of the following.
a. Identity proof (any of the following): Permanent Account Number card, driver’s license, passport, or voter card;
b. Residence proof (any of the following): driver’s license, passport, voter card, telephone bill, ration card, electricity bill, bank statement;
Step 2: After this, you have to obtain a digital signature certificate online from one of the six private agencies authorized by the Ministry of Corporate Affairs (National).
Step 3: Next, you have to see if your company name is available and if yes, reserve the company name online with the Registrar of Companies (ROC) (National). After the name is approved, it will appear on the website. Applicants have to keep checking the website to check if their submitted name was approved.
Step 4: After this, you have to stamp the company documents at the State Treasury (State) or an authorized bank (Private). This can get completed in a day.
Step 5: After you have completed the previous step, you have to get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (National). In most of the cases, this process takes around 5 days time.
Step 6: Next you have to make a seal for your company. The cost can range from INR 300 to INR 500.
Step 7: Now you have to get a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd., as designated by the Income Tax Department (National). It would take around a week’s time to get your PAN.
Step 8: After getting the PAN, you have to attain a Tax Account Number (TAN) that has to be used for income tax purposes from the Assessing Office in the Mumbai Income Tax Department. This will also take at least a week’s time.
Step 9: Now you have to register your company with the Office of Inspector, Shops, and Establishment Act (State/Municipal).
Step 10: You have to also register your company for Value-Added Tax (VAT) at the Commercial Tax Office (State).
Step 11: Next register your company for Profession Tax at the Profession Tax Office (State).
Step 12: You have reached almost the finals steps. You also have to register your company with the Register with the Employees’ Provident Fund Organization (National).
Step 13: Finally, make sure you register for medical insurance at the regional office of the Employees’ State Insurance Corporation (National)