Steps to Starting a Business in India
September 23, 2020
1. Checking the Company Name Availability
2. Acquiring a Director Identification Number (DIN)
A Director Identification Number (DIN) is a special identification number that is provided to any existing or potential directors of companies that are incorporated. A provisional DIN can be obtained by filling a DIN-1 application form online.
Then, a printed and signed version of the form must be forwarded to the ministry along with identity and address proof for their approval. A permanent DIN is issued after the verification of the documents and the subsequent approval of the request.
3. Acquiring a Digital Signature Certificate
4. Obtaining an Incorporation Certificate
An incorporation certificate is provided by the Ministry of Corporate Affairs and is used as proof for the constitution of the company. To apply, the following forms must be digitally filed on the official Ministry of Company Affairs website – e-form 32, e-form 1 and e-form 18.
Along with Form 1, the Registrar of Companies must be provided with one copy of each: The Memorandum and Articles of Association (MoA and AoA), the consent of directors, and a stamped copy establishing the power of attorney.
The certificate of incorporation will be automatically sent to the e-mail ID as provided in the information submitted with the forms while incorporating the company.
5. Creating a Company Seal for official documentation
6. Stamping of all Company Documents
The application to have the company’s incorporation documents stamped must always have the unsigned copies of the Memorandum and Articles of Association attached alongside the payment receipt for the same. Stamp duty should be paid online for such documents to the Registrar of Companies.
Following this application, the Superintendent will return the copies – one of which is stamped, signed and embossed in an official capacity. Finally, the company promoters must sign the MoA and AoA, with all required information being filled in their own handwriting.
7. Acquiring a Permanent Account Number (PAN)
8. Acquiring a Tax Account Number (TAN)
As per the Government of India, a Tax Deduction Account Number or Tax Collection Account Number (TAN) is a special number issued by the Income-tax department to all entities who are required to either deduct or collect tax at the source.
To obtain this number, the form 49B must be filled out and submitted at a TIN Facilitation Center. Once the application has been verified, it is forwarded to the Income Tax Department and the TAN is issued. The application for a TAN can be done either offline or through the NSDL website.
9. Obtaining a certificate from the State/Municipal Inspector under the Shops and Establishment Act
10. Applying for GST Registration
GST registration is mandatory for any entity seeking to undertake the supply of goods and services across states while maintaining an annual aggregate turnover of more than INR 40 lakhs/20 Lakhs. This should be prioritized before any other process for new company registration. For further information on GST Registration and documents required for the application, you may visit the following link.
GST registration is mandatory if you are a seller or are planning to be a seller on Amazon.in (exception: if deals only with GST-exempt categories).