Starting and registering a business in India involves a series of detailed steps. Here’s a more comprehensive guide to help you navigate the process:
To start and register business in India we need to determine the Business Structure:
- Sole Proprietorship: Simplest form with a single owner.
- Partnership: Two or more individuals who share profits and liabilities.
- Limited Liability Partnership (LLP): Combines features of a partnership and a company, providing limited liability to partners.
- Private Limited Company: Separate legal entity with limited liability, requires a minimum of two directors and shareholders.
- Public Limited Company: A large-scale business with shares traded on the stock exchange.
Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC):
If you plan to register a company or LLP, you and any proposed directors/partners must obtain a DIN. This can be done by submitting an online application to the Ministry of Corporate Affairs (MCA). Additionally, a DSC is required for online filing and authentication purposes.
To start and Register Business In India we need to choose a business name:
Apply for Name Approval: Submit an application for name availability to the ROC through the MCA’s online portal. The proposed name should comply with the naming guidelines and not be identical or similar to existing company names. Once approved, the name will be reserved for 20 days.
Prepare Incorporation Documents:
To start and register business In India For company registration, prepare the necessary incorporation documents, including the Memorandum of Association (MOA) and Articles of Association (AOA). For LLP registration, prepare the LLP agreement. These documents outline the business objectives, shareholding patterns, and other essential details.
File Incorporation Documents:
To start and register business In India File the incorporation documents, along with the necessary forms, with the ROC. This can be done electronically through the MCA portal. Pay the required fees based on the authorized capital of the company. Once verified and approved, the ROC will issue a Certificate of Incorporation or Registration.
Obtain Permanent Account Number (PAN) and Tax Deduction Account Number (TAN):
To start and register business In India Apply for a PAN with the Income Tax Department. PAN is a unique identification number for income tax purposes and is required for various financial transactions. Additionally, if you plan to deduct taxes at source from employees or vendors, apply for a TAN.
Register for Goods and Services Tax (GST):
To start and register business In India Determine whether your business is liable for GST registration based on turnover thresholds. If required, visit the GST portal and complete the registration process by providing the necessary information and documents. Obtain a GST Identification Number (GSTIN) after successful registration.
Register with Other Regulatory Authorities:
Depending on the nature of your business, you may need to register with additional regulatory authorities:
- Shops and Establishment Act: Register with the local municipal corporation or the concerned authority to comply with labor and employment regulations.
- Employees’ Provident Fund Organization (EPFO): Register with EPFO if you have employees to facilitate employee provident fund contributions.
- Employee State Insurance Corporation (ESIC): Register with ESIC if your business employs a certain number of workers to provide them with social security benefits.
Open a Bank Account:
To start and register business In India Choose a bank and open a business bank account in the name of your company or business entity. Provide the necessary documents, such as the Certificate of Incorporation, PAN, identity/address proofs of directors/partners, and photographs.
Comply with Ongoing Legal Requirements:
To start and register business In India After registration, ensure ongoing compliance with various legal requirements, such as:
- Filing annual financial statements and annual returns with the ROC.
- Maintaining proper books of accounts and conducting regular audits.
- Filing income tax returns and other applicable tax filings.
- Complying with GST regulations, including filing regular returns.
- Adhering to labor laws, such as employee records maintenance, payroll compliance, and social security contributions.
- Holding regular board meetings and maintaining meeting minutes.
- Renewing licenses and registrations as required by specific industries or local authorities.
Consulting with a legal professional, chartered accountant, or company secretary is recommended to navigate the intricacies of business registration in India. They can provide personalized guidance based on your business requirements, ensuring compliance with all applicable laws and regulations.
Who is C.A. Charted Accountant?
A Chartered Accountant (CA) is a professional who specializes in accounting, auditing, taxation, and financial management. In many countries, including India, the term “Chartered Accountant” is used to describe a member of a professional accounting body or institute.
Chartered Accountants are highly trained professionals who have completed a rigorous education and examination process to obtain their qualification. They are authorized to provide a range of services, including financial reporting, tax planning and compliance, auditing, business advisory, and management consulting.
To become a Chartered Accountant, individuals typically need to complete a recognized accounting program and gain practical experience through an internship or training under the supervision of a practicing CA. They also need to pass a series of professional examinations administered by the relevant accounting institute or regulatory body.
Chartered Accountants play a vital role in various sectors, including public accounting firms, private corporations, government organizations, and non-profit entities. They provide valuable insights and expertise in financial matters, helping businesses and individuals make informed decisions, maintain financial integrity, and comply with relevant laws and regulations.
In summary, a Chartered Accountant is a professional with specialized knowledge and skills in accounting, auditing, taxation, and financial management. They provide a wide range of financial services and guidance to organizations and individuals, contributing to the effective management and reporting of financial information.
why we required a C.A. a charted accountant to register business in India?
While it is not mandatory to hire a Chartered Accountant (CA) to register a business in India, engaging their services is highly recommended due to several reasons:
- Expertise in Accounting and Compliance: CAs possess in-depth knowledge of accounting principles, tax laws, and regulatory requirements. They can guide you through the complex process of business registration, ensuring compliance with all legal obligations and minimizing the risk of errors or omissions.
- Legal and Regulatory Compliance: Registering a business involves fulfilling various legal and regulatory obligations, such as preparing and filing the necessary documents with the Registrar of Companies (ROC), obtaining the required licenses and permits, and complying with tax laws. CAs are well-versed in these requirements and can ensure that all necessary procedures are followed accurately and in a timely manner.
- Structuring and Tax Planning: CAs can provide valuable advice on the most suitable legal structure for your business, taking into consideration factors such as liability protection, scalability, and tax implications. They can help optimize your tax planning strategies, ensuring compliance with tax laws while minimizing tax liabilities.
- Financial Planning and Reporting: CAs can assist in developing robust financial plans, including budgeting, forecasting, and cash flow management. They can also prepare financial statements and reports required for registration and ongoing compliance, providing accurate and reliable information that facilitates decision-making and meets regulatory requirements.
- Audit and Assurance Services: Certain types of businesses, such as companies and large partnerships, may require mandatory audits. CAs are authorized to perform these audits and provide assurance on the accuracy and reliability of financial statements, which is essential for building trust with stakeholders, investors, and lenders.
- Ongoing Compliance and Advisory Services: Once your business is registered, CAs can provide ongoing support and guidance on various compliance matters, such as filing annual returns, maintaining books of accounts, and adhering to tax regulations. They can also offer strategic advice and financial insights to help you manage and grow your business effectively.
While it is possible to navigate the registration process without a CA, their expertise and experience can save you time, mitigate risks, and ensure that all legal and financial aspects are handled accurately and efficiently. Engaging a CA early in the process can set a strong foundation for your business and provide you with valuable professional support throughout your entrepreneurial journey.
Mr. Abhinay is Managing Director at Appok Infolabs.
Having12+ years of experiance in AI. | VR. | ML. and Expertise in Cloud computing | Digital marketing | Search engine optimisation.