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Start Business In India

For Start Business In India there is Mainly a License and Tax Registration is Required. Depends on the Business Activity Person Required to Get Certain Registrations. As per Applicable law and Establishment type there are some Compulsory Registration required to start business. There are Four Stage To Start Business In India.

  1. Entity Registration: Formation – Registration of Firm or Company.
  2. License and Tax Certificate: Obtain Applicable Tax Number and License Certificate.
  3. Obtain Bank Account: Once all above done, you can obtain Bank Account.
  4. Maintain Accounting Records and Compliance Filings: Regular Filing of Returns and Audit

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Four Primary Stage to Start Business in India

Formation of Business Entity

There are Multiple Options for Formation of Entity to Start Business In India. Simple way is to start Proprietorship Business, Which will Cost Less Amount to start in initial stage.

Firstly you need to Form Entiry. Mostly there are Three Options Proprietor, Company or partnership. 

Depend on Requirement of Business and Person Involved in Business Partnership you need to Form Establishment. Selecting Business Establishment Type for Business is Crucial as its affect the parties like Customers, Investor etc.

Lets Understand the Types of Entity you can formed to start business in India. (Click on Respective Entity Type to know more)

  1. Proprietorship (Individual)
  2. Partnership Firm
  3. Limited Liability Partnership (LLP)
  4. Private Limited Company
  5. Public Limited Company
  6. Foreign Holding Company

Required License and Certificate

Once, Entity Registration Completes for business startup, You Need to apply for Various Business License and Tax Numbers as well as Various Compliance Registration. Depends on activity there are many license and tax compliance you need to get register your business. However In some Compliance there are minimum applicability limits where you need to get registration only if your business cross such limit, otherwise its optional.

Check list for Various law and License

License and Registration List for Startup Business

  1. PAN Card: Income Tax Permanent Account Number is Compulsory for starting Business In India. However Individual Proprietor Not Need to Apply Separate Business PAN. for all other types of Business Establishment PAN separately available from Income Tax Department. Need to apply for PAN click here
  2. Professional Tax Registration/ Shop Act License: Before Starting Business activity, Establishment Need to Get Registration Certificate from Local Municipal Corporation. Such Registration are as per Local Municipal Area Guidelines. Types of Registration are Professional Tax Registration, Shop and Establishment License, Gumasta Dhara License etc.
  3. Goods and Services Tax Registration (GST): Supplier of Goods or Services are Required to Get Registration under GST Act. Minimum Turnover without GST is upto Rs. 40 Lacs. However for Interstate Sales and For Export Sales GSTIN (GST Number) is Compulsory. Goods and Services Tax is Combine Tax Structure of Service Tax and Sales VAT Tax. Need to apply for GST Number Click Here
  4. Tax Account Number (TAN): Person or Establishment Responsible for Tax Deduction at source are required to get TAN. Its Mandatory for the entity who is required to get tax audit of their Books of Account.
  5. Provident Fund Registration (PF): PF Registration is compulsory when No. of Employee in Office/Factory Cross the minimum mark of 20 Employee. However you can apply for PF Number even if Employees are less than 20 (Optional). Click Here to apply for PF
  6. ESIC Registration: ESIC is Required if Business activity is Falls in the Criteria of ESIC Act. Otherwise its Optional. Click Here to Apply for ESIC
  7. Special Registration According to Business Activity:
    • Labour License: in case Manpower industries.
    • DoT (TRAI) License: in case call center and BPO, KPO activity
    • Foods License (FSSAI): Hotel, Restaurant Units
    • Drug License: Medical Store
    • Import Export Code (IEC) : Exporter

Opening of Bank Account and Starting Business activity

After you completes all the required Registration and license. you can finally start business activity. Primary Requirement to start business is opening of Current Account in Bank.

Bank will Open Current Account with your Entity Documents and License Certificate. you can select Suitable Bank and Suitable Bank Account Scheme according to your requirement.

Maintain Accounting Records and File Applicable Tax Returns.

Accounts and Compliance Filings is essential part of Business. One Leading Business man Said “if you cant maintain books of account and tax filing, better you do job ; business is out of your league.” 

Preparing Books of Accounts and Filing Annual Returns is Compulsory as per Income Tax Act.

Continuous Monthly/Quarterly/Annual Filing of Tax Returns is mandatory, there is huge penalty for missing Applicable returns. Such as GST Return, PF & ESIC Return, TDS Return, Income Tax Return, RoC Filing etc.

therefore, Proper Compliance will result in smooth business operation. if you cant afford in house accounting. you can hire part time account person.

Contact us for Complete Business Solution for Start Business in India.