Common Legal Registration Processes for Starting a Business in Indiaadmin
Before venturing into a new business in India, it is essential that you diligently follow the necessary steps to get your organization properly registered according to governmental regulations and legal requirements. One of the first steps toward establishing your new enterprises is meeting all legal and industry compliance needs.
Meeting shop & establishment compliance and other company registration-related formalities necessitate start-ups to partner with reliable and efficient HR and business registration service providers such as TalentPro India.
The Crucial Processes in Business Registration
Start-ups must strongly focus on their prospects, customers, and the market. It is equally or even more important to know the fundamental rules, regulations, and prevailing laws to get the new business registered properly. Statutory compliance and labor law compliance are among such significant requirements.
Here’s how you may get your company registered and meet all compliance needs, such as labor law compliance and statutory compliance.
(Read more: Need and Importance Of Statutory Compliance)
Company Name Availability Verification
Business owners have to check whether the proposed name of their company is available, which may be done online.
Business Incorporation Certificate
Every business entity that wishes to start business activities in any prescribed structures must first get itself registered under the Ministry of Corporate Affairs. Registration of the firm/LLP/company or other structure is mandatorily required.
Shops and Establishment License/Trade License
Business owners need to get a license from the governing authorities to set up any commercial establishment on the premises. Obtaining the license requires establishing that your organization has more than ten employees, which has to be ensured by the labor commissioner.
Permanent Account Number (PAN) and Tax Deduction Account Number (TAN)
Regardless of the business structure, such as partnership, LLP, sole proprietorship, or any other structure, getting a PAN and TAN is one of the basic requirements. Issued by the income tax department in India, these unique alphanumeric numbers are essential to conducting business activities.
The GST regime in India has covered almost all types of businesses. Business owners liable to pay GST have first to apply and get GSTIN, which is a unique identification number.
Employees State Insurance (ESI) Registration
All business entities conducting any commercial activities are liable to contribute toward their employees’ insurance premiums. This is required to protect them against any possible mishap or hazard and for managing their healthcare. ESI registration is mandatory.
Employees Provident Fund (EPF) Registration
Mandatory for all commercial establishments with 20 or more people, the EPF scheme of the Government of India requires companies to cover their employees with a monthly income of less than Rs. 15,000/-
Contract Labor Registration
Businesses that involve more than 10 contract employees need to obtain contract labor license. Issued by the Labor Department in the state where the company is located, this has to be obtained both by the employer and the contractor.
Professional Tax Registration
Professional tax, levied by the local administrative body of the government, is levied on the salary paid to individuals. A registration certificate is used as a reference for tax remittance. This certificate is issued by the concerned authority and must be obtained while starting a new business. (Read more: A Primer to Payroll Taxes)
Digital signature certificate
All official documents and certificates must have a valid digital signature. Indian company registration process demands all business organizations to acquire a digital signature certificate (DSC). This ensures the safe submission of documents electronically.
Important Documents Required for Setting up Business in India
- Director Identification Number (DIN)
- Certificate of incorporation
- Digital signature certificate
- Commencement of business certificate
- Registration on the Ministry of Company Affairs portal
- Shop and establishments license
- GST registration certificate
While venturing into a new business in India, entrepreneurs must first understand the various laws and regulations prevailing here. A few major factors to be concerned about are labor law compliance, shop & establishment compliance, and statutory compliance.