Most of the IT companies are founded by youngsters, and no doubt they are multi-millionaires today!. Indian economy will be booming for the next couple of decades, and demand for new technology companies are still increasing.
In a study conducted by World Bank, India at 120 among 178 economies,based on ease of doing business,and 111 on starting a business. The project estimates that an average of 33 days is required to set up a business in India and the process involves 13 basic steps. These apply to Kerala as well,though the licenses required will vary depending on the type of business or industry.
Here is the steps, which is required for setting up a company / business. hope it helps all of our business aspirants.
1 Obtain Director Identification Number From the Ministry of Company Affairs:Takes one day ;no charges
2 Obtain electronic/digital signature certificate from authorised cerifying agencies like Sify and TCS:Takes 4 days;Costs Rs 400 to Rs 2,650
3 Present name for approval to Registrar of Companies(ROC);get the Memorandum (MoA)and Articles of Association (AoA)vetted by ROC and printed: Takes 23days;Rs 50
4 Apply to the Superintendent of Stamps or an authorised bank for stamping of the Memorandum and Articles of association:1 day ;Rs 200 for MoA, Rs 1,000 for every Rs 5 lakh or part there of for AoA ,Rs 100 for stamp paper
5 Present the requried documents and registration fees to RoC. Documents needed include stamped copies of MoA and AoA, Copy of Form 32 along with consent letters of Directors of the Company, Form 1application and declaration for incorporating the Company, Form 18 address proof of the Company,Form 1Aevidencing name approval,copy of challan of fee, Power of Attorney from subscribers on judicial stamp paper of Rs 100 Identification of subscribers in the form of driving license , passport, ration card or voter’s identity card. These documents are to be uploaded online as well as filed in original with the RoC.
The fees are determined by the amount of authorised share capital of the company.
For registration of a company whose nominal share capital does not exceed Rs 1 lakh: Rs 4,000
For registration of a company whose nominal share capital exceeds Rs 1 lakh:Rs 4,000,plus the following:
Rs 300 for every Rs 10,000 of nominal share capital or part of Rs 10,000 after the first Rs 1 lakh up to Rs 5 lakh
Rs 200 for every Rs 10,000 of nominal share capital or part of Rs 10,000 after the first Rs 5 lakh up to Rs 50 lakh
Rs 100 for every Rs 10,000 of nominal share capital or part of Rs 10,000 after the first Rs 50 lakh up to Rs 1 crore
Rs 50 for every Rs 10,000 of nominal share capital or part of Rs 10,000 after the first Rs 1 crore
The amount has to be paid by Demand Draft or Treasury Challan
6. Obtain a company seal: 3 day;Rs 350
7. Obtain Permanent Account Number from an authorised franchise or agent appointed by the National Securities Depository Services Ltd:7 day;Rs 66 fee and Rs 5 for form (if not downloaded).The application is to be made on From 49A along with a certified copy of the certificate of registration issued by ROC as well as proof of identity and address. The Income Tax Department has outsourced PNA allotment to UTI Investors Services Ltd.
8. Obtain TAN (Tax Account Number) form the Assessing Officer in the Concerned circle of the Income tax Department; 7 day (happens simultaneously with step 7); Rs 55.TAN is mandatory on TDS/TCS certificates.
9. Register with Kerala Shops and Establishments Act: 2 day (along with steps 7& 8); Apply in form B 1 to Assistant Labour OfficerGradeIII, along with the applicable fees.
The fee Structure is as follows:
For an establishment with no employees Rs 10
For an establishment with less than 5 employeesRs 50
For an establishment with 5 to 10 employees Rs 100
For an establishment with less than 20 employeesRs 200
For an establishment with 20 to 30 employees Rs 300
For an establishment with 31 to 50 employeesRs 500
For an establishment with 51 to 100 employeesRs 1,000
10. Register for value added tax, if applicable,before the Sales Tax Officer of the ward in which the company is located:12 days (along with previous step); Rs 5,000 as registration fee and Rs 100 as stamp duty.
11. Register for profession tax: 2 days,along with step 10; no charge
12. Register with Employees Provident Fund Organisation :2 days ,along with step 10; no charge.
This is optional if employee strength is less than 20.
13. Register with ESIC (medical insurance): 1 day ,along with step 10; no charge.