How Start a business in India
Below is a detailed summary of the bureaucratic and legal hurdles faced
by entrepreneurs wishing to incorporate and register a new firm in
India. It examines the procedures, time and cost involved in launching a
commercial or industrial firm with up to 50 employees and start-up
capital of 10 times the economy's per-capita gross national income.
This information was collected as part of the Assets Care, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 283 economies. The most recent round of data collection was completed in Oct 2012
1 Obtain director identification number (DIN) on-line
The process to obtain the Director Identification Number (DIN) is as follows:
1) Obtain the provisional DIN by filing application Form DIN-1 online. This form is on the Ministry of Corporate Affairs 21st Century (MCA 21) portal www.mca.gov.in . The provisional DIN is immediately issued (Provisional DIN is valid for a period of 60 days. The application form must then be printed and signed and sent for approval to the ministry by courier along with proof of identity and address:
A. Identity Proof (Any one)
• PAN Card (Compulsory)
• Driving License
• Passport
• Voter Id Card
A photograph should be attached to the DIN application and the documents in proof of identity and address must be attested by a Public Notary or Gazette Officer of the Government or by a practicing professional (such as practising Chartered Accountant, a practising Company Secretary or a practising Cost Accountant or Company Secretary of the company in full time employment of the company, whose director the applicant is proposed to be appointed).
B. Residence Proof (Any one)
• Driving License
• Passport
• Voter Id Card
• Telephone Bill
• Ration Card
• Electricity Bill
• Bank Statement
2) The concerned authority verifies all the documents and, upon approval, issues a permanent DIN Same Time
2 Obtain digital signature certificate on-line
To use the new electronic filing system under MCA 21, the applicant must obtain a Class-II Digital Signature Certificate. The digital signature certificate can be obtained from one of six private agencies authorized by MCA 21 such as Tata Consultancy Services. Company directors submit the prescribed application form along with proof of identity and address. Each agency has its own fee structure, ranging from INR 500 to INR 2650.
There are total seven Certification Agencies authorized by the Controller of Certification Agencies to issue the Digital Signature Certificates. The details of these Certification Agencies are available on the portal of the Ministry of Corporate Affairs (www.mca.gov.in). Maximum Time of obtain DSC is one day.
3 Reserve the company name with the Registrar of Companies (ROC) on-line
Company name approval must be done electronically. Under e-filing for name approval, the applicant can check the availability of the desired company name on the MCA 21 Web site.
The RoC in Mumbai has staff members working full time on name reservations (approximately 3 but more if the demand increases). A maximum of 6 suggested names can be submitted, they are then checked by RoC staff for any similarities with all other names in India.
The MCA receives approximately 50-60 applications a day. After being cleared by the junior officer, the name requests are sent to the senior officer for approval. Once approved, the selected name appears on the website. Applicants need to keep consulting the website to confirm that one of their submitted names was approved.
In practice, it takes 2-3 days for obtaining a clearance of the name if the proposed name is available and conforms to the naming standards established by the Company Act (1 day for submission of the name and 1 day for it to appear on the MCA website).
4 Pay stamp duties online, file all incorporation forms and documents online and obtain the certificate of incorporation
As a result of MCA's desire to further the e-governance's initiatives, with effect from 1st of January 2010 it has been made compulsary to pay all stamp duties on incorporation documents online through the Ministry of Corporate Affairs (MCA) website. As a result of these reforms, the mode of payment of stamp duty through affixation of adhesive stamps on Articles of Association and Memorandum of Association has been replaced by e-payment of applicable stamp duty on Articles and Memorabdum of association through MCA portal. Further, certain forms: Form 1 (a primary form used in the incorporation process), Form 5 & Form 44 will also be stamped electonically through MCA Portal. Further, the reforms also provides that the documents on which e-stamping has been done, need not to be filed physically and electronic filing of the same would be sufficient.
For registration, the following forms are required to be electronically filed on the website of the Ministry of Company Affairs:
(a) e-form 1;
(b) e-form 18;
(c) e-form 32
Along with these documents, scanned copies of the consent of the initial directors, and also of the signed and the Memorandum and Articles of Association, must be attached to Form 1.
- The fees for registering a company can be paid online by using a credit card or by payment in cash at certain authorized banks;
- The certificate of incorporation is sent automatically to the registered office of the company by registered or speed post.
The registration fees paid to the Registrar are scaled according to the company’s authorized capital (as stated in its memorandum):
- INR 100,000 or less: INR 4,800.
If the nominal share capital is over INR 100,000, additional fees based the amount of nominal capital apply to the base registration fee of INR 4,000:
The payment of fees can be made online; the applicant makes the payment through credit cards and the system accepts the documents immediately. Please note that in Mumbai, RoC requests for pre-scrutiny of documents for any correction thereon, before the documents are uploaded, so that once the documents have been uploaded, it can be approved without any further correction. The online filing mechanism requires only one copy of scanned documents to be filed (including stamped MOA, AOA, and POA).
Schedule of Registrar filing fees for the articles and for the other forms (l, 18, and 32):
According to Article 10 and Article 39 of the Indian Stamp Act (1899), the stamp duty payable on the memorandum and articles of association for company incorporation , is as follows:
- Articles of association:xxxxxxxxxxx
- Memorandum of association:xxxxxxxxxxxx
- Form-1 (declaration of compliance): xxxxxxxx.
After 2-3 Working Day ROC give Certificate of Incorporation
5 Make a seal
Although making a seal is not a legal requirement for the company to be incorporated, companies require a company seal to issue share certificates and other documents. timing of Making Seal 1 Day.
6 Visit an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) Investors Services Ltd to obtain a Permanent Account Number (PAN)
Under the Income Tax Act, 1961, each person must quote his or her permanent account number (PAN) for tax payment purposes and the tax deduction and collection account number (TAN) for depositing tax deducted at source. The Central Board of Direct Taxes (CBDT) has instructed banks not to accept any form for tax payment (Chalan) without the PAN or TAN, as applicable.
The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing officer of the Income Tax Department. In order to improve PAN related services, the Income Tax department (effective July 2003) outsourced their operations pertaining to allotment of PAN and issue of PAN cards to UTI Investor Services Ltd, which was authorized to set up and manage IT PAN Service Centers in all cities where there is an Income Tax office.
The National Securities Depository Limited (NSDL) has also launched PAN operations effective June 2004, setting up TIN Facilitation Centers. The PAN application is made through the above mentioned service centers on Form 49A, with a certified copy of the certificate of registration, issued by the Registrar of Companies, along with proof of company address and personal identity. A fee of INR 94 (plus applicable taxes) applies for processing the PAN application.
IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A), assist the applicant in filling up the form, collect filled form and issue acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant.
The application for PAN can also be made online but the documents still need to be physically dropped off for verification with the authorized agent. For more details (www.incometaxindia.gov.in , www.utiisl.co.in , www.tin-nsdl.com ) Maximum Time of Geting PAN is 5 Day. but you can Start business after geting Certificate of incorporation.
After Geting PAN Open A Current Account & do Tran section.
For Start a business Contact us :-
Email:- carajesh.delhi@gmail.com
Contact No.-9582442393
This information was collected as part of the Assets Care, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 283 economies. The most recent round of data collection was completed in Oct 2012
1 Obtain director identification number (DIN) on-line
The process to obtain the Director Identification Number (DIN) is as follows:
1) Obtain the provisional DIN by filing application Form DIN-1 online. This form is on the Ministry of Corporate Affairs 21st Century (MCA 21) portal www.mca.gov.in . The provisional DIN is immediately issued (Provisional DIN is valid for a period of 60 days. The application form must then be printed and signed and sent for approval to the ministry by courier along with proof of identity and address:
A. Identity Proof (Any one)
• PAN Card (Compulsory)
• Driving License
• Passport
• Voter Id Card
A photograph should be attached to the DIN application and the documents in proof of identity and address must be attested by a Public Notary or Gazette Officer of the Government or by a practicing professional (such as practising Chartered Accountant, a practising Company Secretary or a practising Cost Accountant or Company Secretary of the company in full time employment of the company, whose director the applicant is proposed to be appointed).
B. Residence Proof (Any one)
• Driving License
• Passport
• Voter Id Card
• Telephone Bill
• Ration Card
• Electricity Bill
• Bank Statement
2) The concerned authority verifies all the documents and, upon approval, issues a permanent DIN Same Time
2 Obtain digital signature certificate on-line
To use the new electronic filing system under MCA 21, the applicant must obtain a Class-II Digital Signature Certificate. The digital signature certificate can be obtained from one of six private agencies authorized by MCA 21 such as Tata Consultancy Services. Company directors submit the prescribed application form along with proof of identity and address. Each agency has its own fee structure, ranging from INR 500 to INR 2650.
There are total seven Certification Agencies authorized by the Controller of Certification Agencies to issue the Digital Signature Certificates. The details of these Certification Agencies are available on the portal of the Ministry of Corporate Affairs (www.mca.gov.in). Maximum Time of obtain DSC is one day.
3 Reserve the company name with the Registrar of Companies (ROC) on-line
Company name approval must be done electronically. Under e-filing for name approval, the applicant can check the availability of the desired company name on the MCA 21 Web site.
The RoC in Mumbai has staff members working full time on name reservations (approximately 3 but more if the demand increases). A maximum of 6 suggested names can be submitted, they are then checked by RoC staff for any similarities with all other names in India.
The MCA receives approximately 50-60 applications a day. After being cleared by the junior officer, the name requests are sent to the senior officer for approval. Once approved, the selected name appears on the website. Applicants need to keep consulting the website to confirm that one of their submitted names was approved.
In practice, it takes 2-3 days for obtaining a clearance of the name if the proposed name is available and conforms to the naming standards established by the Company Act (1 day for submission of the name and 1 day for it to appear on the MCA website).
4 Pay stamp duties online, file all incorporation forms and documents online and obtain the certificate of incorporation
As a result of MCA's desire to further the e-governance's initiatives, with effect from 1st of January 2010 it has been made compulsary to pay all stamp duties on incorporation documents online through the Ministry of Corporate Affairs (MCA) website. As a result of these reforms, the mode of payment of stamp duty through affixation of adhesive stamps on Articles of Association and Memorandum of Association has been replaced by e-payment of applicable stamp duty on Articles and Memorabdum of association through MCA portal. Further, certain forms: Form 1 (a primary form used in the incorporation process), Form 5 & Form 44 will also be stamped electonically through MCA Portal. Further, the reforms also provides that the documents on which e-stamping has been done, need not to be filed physically and electronic filing of the same would be sufficient.
For registration, the following forms are required to be electronically filed on the website of the Ministry of Company Affairs:
(a) e-form 1;
(b) e-form 18;
(c) e-form 32
Along with these documents, scanned copies of the consent of the initial directors, and also of the signed and the Memorandum and Articles of Association, must be attached to Form 1.
- The fees for registering a company can be paid online by using a credit card or by payment in cash at certain authorized banks;
- The certificate of incorporation is sent automatically to the registered office of the company by registered or speed post.
The registration fees paid to the Registrar are scaled according to the company’s authorized capital (as stated in its memorandum):
- INR 100,000 or less: INR 4,800.
If the nominal share capital is over INR 100,000, additional fees based the amount of nominal capital apply to the base registration fee of INR 4,000:
The payment of fees can be made online; the applicant makes the payment through credit cards and the system accepts the documents immediately. Please note that in Mumbai, RoC requests for pre-scrutiny of documents for any correction thereon, before the documents are uploaded, so that once the documents have been uploaded, it can be approved without any further correction. The online filing mechanism requires only one copy of scanned documents to be filed (including stamped MOA, AOA, and POA).
Schedule of Registrar filing fees for the articles and for the other forms (l, 18, and 32):
According to Article 10 and Article 39 of the Indian Stamp Act (1899), the stamp duty payable on the memorandum and articles of association for company incorporation , is as follows:
- Articles of association:xxxxxxxxxxx
- Memorandum of association:xxxxxxxxxxxx
- Form-1 (declaration of compliance): xxxxxxxx.
After 2-3 Working Day ROC give Certificate of Incorporation
5 Make a seal
Although making a seal is not a legal requirement for the company to be incorporated, companies require a company seal to issue share certificates and other documents. timing of Making Seal 1 Day.
6 Visit an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) Investors Services Ltd to obtain a Permanent Account Number (PAN)
Under the Income Tax Act, 1961, each person must quote his or her permanent account number (PAN) for tax payment purposes and the tax deduction and collection account number (TAN) for depositing tax deducted at source. The Central Board of Direct Taxes (CBDT) has instructed banks not to accept any form for tax payment (Chalan) without the PAN or TAN, as applicable.
The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing officer of the Income Tax Department. In order to improve PAN related services, the Income Tax department (effective July 2003) outsourced their operations pertaining to allotment of PAN and issue of PAN cards to UTI Investor Services Ltd, which was authorized to set up and manage IT PAN Service Centers in all cities where there is an Income Tax office.
The National Securities Depository Limited (NSDL) has also launched PAN operations effective June 2004, setting up TIN Facilitation Centers. The PAN application is made through the above mentioned service centers on Form 49A, with a certified copy of the certificate of registration, issued by the Registrar of Companies, along with proof of company address and personal identity. A fee of INR 94 (plus applicable taxes) applies for processing the PAN application.
IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A), assist the applicant in filling up the form, collect filled form and issue acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant.
The application for PAN can also be made online but the documents still need to be physically dropped off for verification with the authorized agent. For more details (www.incometaxindia.gov.in , www.utiisl.co.in , www.tin-nsdl.com ) Maximum Time of Geting PAN is 5 Day. but you can Start business after geting Certificate of incorporation.
After Geting PAN Open A Current Account & do Tran section.
For Start a business Contact us :-
Email:- carajesh.delhi@gmail.com
Contact No.-9582442393
for any information about company incorporation call me directly +91-9871124889
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