Simlified process for formation of company


Now here is the simplified procedure for investors especially NRIs and foreigners who want to come to India to start their own Business. Following are the standard procedures and are applicable in most cities in India, however, many of other cities have some additional or different procedure. 

 

Steps in starting business in India

 

Registration Requirements:

 

No:

Procedure

Time to complete:

Cost to complete:

1

 

Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (National)

 

1 day

INR 100

2

 

Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (National)

 

3 days

INR 1,500

3

 

Reserve the company name online with the Registrar of Companies (ROC) (National)

 

2 days

INR 500

4

Stamp the company documents at the State Treasury (State) or authorized bank (Private)

1 day

INR 1,300 (INR 200 for MOA + INR 1,000 for AOA for every INR 500,000 of share capital or part thereof + INR 100 for stamp paper for declaration Form 1)

5

 

Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (National)

 

5 days

INR 14,133 (see comments)

6

Make a seal (Private)

1 day

INR 350 (cost depends on the number of seals required and the time period for delivery)

7

 

Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd., as outsourced by the Income Tax Department (National)

 

7 days

INR 67 (INR 60 application fee + 12.36% service tax + INR 5 for application form, if not downloaded)

8

 

Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department

 

7 days

INR 57 (INR 50 application fee + 12.36% service tax)

9

Register with the Office of Inspector, Shops, and Establishment Act (State/Municipal)

2 days

INR 6,500 (INR 2000 + 3 times registration fee for trade refuse charges)

10

 

Register for Value-Added Tax (VAT) at the Commercial Tax Office (State)

 

12 days

INR 5,100 (registration fee INR 5000 + stamp duty INR 100)

11

 

Register for Profession Tax at the Profession Tax Office (State)

 

2 days

No cost

12

 

Register with Employees’ Provident Fund Organization (National)

 

12 days

No cost

13

 

Register for medical insurance at the regional office of the Employees’ State Insurance Corporation (National)

 

9 days

No cost

 

* Takes place simultaneously with another procedure.

  [Source]

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