Setting up a new business in India can be a lengthy and laborious process, but if you’re able to work hard and stay determined, the benefits are often well worth the efforts. The first thing you will need to do is settle on the exact nature of your endeavour and work out a business plan – this is essential if you’re hoping to secure funding for your venture and also offers you a sound base to work from.
Once you have a firm idea of the way your business will operate and you’ve researched the market to find out whether it’s a viable proposition or not, it’s time to get a Director Identification Number for yourself. You can fill in a form online that will reserve a provisional DIN, from the Ministry of Corporate Affairs 21 (MCA 21), and this form must then be printed and posted, along with proof of your identity and a photograph. The process normally takes under a week.
Next you will need to secure the name of your business, to ensure no one else begins operating under it. This can also be done online, at the MCA 21 website – it’s also possible for you to check the availability of business names there. Typically, it will take about two days for your chosen name to be reserved and cleared for use.
It’s also necessary for you to pay stamp duties online, and it’s a good idea to obtain a digital signature certificate online. These are steps you will need to take to be able to conduct business over the internet. You will also want to make a company seal. While this isn’t a legal requirement, you will need it to issues share certificates and other documents.
You’ll also need a tax account number for incomes taxes, this can be obtained from the Assessing Office in the Mumbai Income Tax Department and you can make the application online. You’ll also need to register for VAT, for profession tax and for medical insurance, to ensure you have all of the relevant paperwork in place.
If you’re planning to employ over 20 people, you will also need to register with the Employees’ Provident Fund Organization. This focuses on businesses engaged in any of the 183 Industries and Classes of business establishments, throughout India excluding the State of Jammu and Kashmir and it is in place to stop fraud and misreporting of workforce size.
Next you’ll need to choose some premises, and think about practical considerations – such as how you will keep your rooms cool and what kind of power supply you’ll use. Having a reliable source of power and a way to keep the temperature cool is an important consideration, if you want your employees to be able to perform to the best of their abilities.