Though it may look complicated, setting up a business in India actually is a step by step process. It has been simply described as follows. You should know that many of these steps can now be completed online.
Obtain Director Identification number (DIN)
- Obtain the application form DIN 1 from the portal of the Ministry of Corporate affairs.
- Fill it and submit online to obtain provisional DIN immediately.
- Print out the application form, sign and send it to the ministry for final approval. Enclose ID proof and address proof with it.
Obtain digital signature certificate online from authorized agencies
- MCA 21 has authorized 6 agencies.
- Submit application form, ID and address proof with relevant fees.
Reserve company name online with Registrar of companies
- Check if the name you want is available on the website of MC 21
- You can submit maximum six names to ROC.
- The names are cleared by a junior then a senior staff member. Check website to see if your company name appears on it.
Stamp company documents at State treasury or bank
- Submit company document copies to the superintendent of stamps.
- No promoter or subscriber should write anything on them by hand.
- Submit stamp duty.
- When the documents are stamped and returned, promoters should sign it.
- The documents should include a sheet written by applicant noting company name purpose, activities, name, address, father’s name and occupation of the applicant. It should be witnessed.
Obtain certificate of registration at the Registrar of Companies
- File e forms 1, 18 and 32 online
- Attach scanned copies of consent of initial directors and the memorandum and Articles of Association.
- Pay the fees online by credit card. Otherwise, you can print out the chalaan and submit a demand draft.
Make a seal
This is not a legal requirement, but you will need a seal to issue share certificates.
Obtain company PAN (permanent account number)
- Apply for PAN through the websites of National Securities Depository Limited or through Unit Trust of India. You can get relevant information from their website.
- Submit the certificate of registration, application fees and other documents.
- PAN is necessary for tax purposes.
Open a company TAN (Tax account number) for tax deducted at source
- Obtain the address of the TIN facilitation centers from the website of the Income Tax department.
- Submit application form and processing fees.
You can obtain a company PAN at http://www.nriinvestindia.com/nri-apply-pan-card-online.html.
Register with the Office of Inspector, Shops, and Establishment Act
- Send a statement to your local shop inspector.
- The statement must contain name of employer, manager, establishment and the category.
- Fees vary depending on the state and number of employees.
Register for VAT at state commercial tax office
- Form 101, proof of residence, place of business and copy of Income tax assessment order are taken to the state commercial tax office by the authorized signatory where the information is manually entered into the system.
- A TIN (Tax Identification Number) is issued at once.
Register for Profession Tax at the State Profession Tax Office
- Obtain the application form from the State profession tax office and fill it up for submission.
- Other documents like address proof, company deed, details of company registration and the head office are to be submitted.
Register with Employees’ Provident Fund Organization
- This is required if the number of employees exceed 20.
- Submit relevant form to obtain social security number.
Register for medical insurance at the regional office of the Employees’ State Insurance Corporation
- Collect information from employees and submit them to ESI office.
- Temporary ESI cards are issues at once, followed by the permanent card.