How to set up a business in India
• Register for a director identification number (DIN) with the Ministry of Corporate Affairs (MCA). The registration form for the DIN is available online at the MCA website (see Resources). The application is to be completed and returned to the MCA by courier, with proof of identity and proof of residence -- cost: INR$100 (INR$1=USD$0.0213). You must alsoobtain a signature certificate -- from one of the six agencies authorized to issue them by the MCA -- to access to the electronic filing system. The cost differs depending on the agency, but ranges between INR$400-2650.
• Reserve the business name with Registrar of Companies (ROC). The ROC has an online portal that allows for the search and reservation of business names. The cost to reservethe company name is INR$500, and the process takes 2-3 days to complete.
• Sign the company documents, and have them authenticated. Articles of association -- detailing the companies mission, directors, shareholders, structure and location, in addition to the memorandum of association and the declaration of compliance, must either be stamped by the "Superintendent of Stamps" or anauthorized banking institution. Appropriate documents will be supplied at signing. This is done in one day and costs about INR$1200. Once stamped submit the documentation to the Registrar of Companies for a certificate of incorporation.
• Order a company seal. A seal is not a requirement by law, but a corporate seal is needed to issue share certificates and also used to certify other companydocuments. A company seal can be purchased from any authorized stationery supply shop for a nominal fee. It usually takes about three days for processing
• Complete taxation and employee related filings. A national franchise agent authorized by the National Securities Depository Services Limited (NSDL) will issue you a permanent account number (PAN) for taxation purposes (cost: INR$55). The agentwill also register you for: a tax account number (TAN) with the Mumbai Income Tax Department --INR$60; Mumbai Shop Act Registration -- INR$1,500; value added tax (VAT) -- INR$5,100; profession tax -- no charge; Employee Provident Fund registration; and medical insurance registration.
India’s economic development has been leaping beyond boundaries. Once upon a time U.S. was the dreamdestination for workers and employees. Many IT companies are competing to establish their workspace in India. Employment opportunities are greatly increasing in India.
GENERAL MEASURES TO REMEMBER AND FOLLOW:
1) Obtain DIN (Director Identification Number): The DIN must be obtained from the Ministry of Corporate Affairs (MCA) .The application form can be taken from the online source. The form must befilled and attached with the,
Identity proof (any one among this: voter id, driving license, PAN card)
Residence proof (any one: Passport, Electricity bill, Ration card, Bank statement)
The authorities of the MCA will make a check of the proof (Average cost=Rs.100).
2) Next step is to obtain Digital signature certificate online authorized by MCA. (Average cost=Rs.400 to 2650)
3) Register companyname: The Company’s name must be approved with the government. The approval form must be filled by the applicant online in the MCA website. Six names to be suggested. The names are compared with the existing companies and a distinct one is selected. (Average cost=Rs.500)
4) Stamp the company’s documents: According to Indian Stamp Act, the memorandum and articles of association must be signed bySuperintendent of Stamps or to the authorized bank. Cost is levied accordingly. (Average cost=Rs.300+ amount depending upon capital)
5) Get certificate of incorporation: Registrar of companies must provide the certificate of incorporation. All the necessary documents must be submitted along with the Registration amount, which is calculated based on estimated capital. (Average cost=Rs.15000)
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