How to start a business in India? Starting Business requires a meticulous planning and capital investment. Apart from this one has to complete several other formalities & paperwork to start business.
The details on the procedures and paper works required to start a business in India is given below.
How to start a business in India – Checklist
In India one can formulate following types of companies.
(1) Sole Proprietorship
(2) Partnership
(3) Private Limited Company
(4) Public Limited Company
(5) Joint Venture Company
We will discuss general process to be followed for starting business.
Take a look at checklist with link and resources for starting a new business in India. You can filter out details which are not required or non relevant.
Step -1 Obtain PAN card from Income tax department
First step for starting business in India is to get Permanent Account Number (PAN) from income tax office. This is 10 digit laminated card issued by Income tax department.
Step -2 Register your Company
Second step is to register your company (Pvt. Ltd / Public Limited Company)
- Decide Unique Name for your Business Entity
- Apply for Director Identification Number
All the existing and intending Directors of the company have to obtain a Director Identification Number (DIN) within the prescribed time-frame as notified. The eForm DIN-1 can be filed to obtain DIN. The application is required to be counter signed by the promoter(s). Processing time 7 Days
- Obtain Digital Signature Certificate
Digital signature certificate is required to submit the document in electronic format. Digital signature ensures authenticity and security of documents.
- Register New user at MCA website.
- Apply for Approval of the Name of Company
Apply for the name of the company to be registered by filing Form1A. This form requires a Digital Signature of one of the Promoters.
This form also require information like objective of company, capital required , location of company etc.
Step -3 Register for Service Tax
Service tax is, as the name suggests, a tax on Services. It is a tax levied on the transaction of certain services specified by the Central Government.
If your business profile is related to providing services to customer you need to register to get service tax number.
Step -4 Register for VAT/Sales Tax
VAT (Value added tax) is imposed by state government on Goods. Taxation rate for VAT depends upon types of good and state government rules.
You need to get VAT/Sales tax number if you are starting business related to sales and purchase of goods.
Also Read: – 20 Types of Taxes in India
Step -5 Register for Excise Duty and Customs (Optional)
Excise duty is indirect tax levied on those goods which are manufactured in India and are meant for home consumption. If your line of business is in manufacturing goods for consumption in India you must register for excise duty.
Customs Duty is Indirect Tax levied on Imports as well as Exports. If you are planning to start business of Import export you need to take care of custom duty.
Step -6 Register for Shop and Establishment Act
Shop and Establishment Act is to provide statutory obligation and rights to employees and employers in the unorganised sector of employment, i.e., shops and establishments. A state legislation; each state has framed its own rules for the Act.
You have to register for shop establishment and get relevant certificate for the same.
Step -7 Opening Current Account in Bank
After getting approval for company one can proceed for opening current account in bank. Bank requires following documents for opening current account.
PAN Card, Address Proof, Certificate of incorporation, shop establishment certificate, VAT Number, Service Tax number etc.
Step -8 Apply for TAN
As you will be employing people for job you are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.
Step -9 Apply for EPF
EPF is Applicable for company employing 20 or more persons.
Step -10 Apply for ESI Scheme
The Act is applicable to non-seasonal factories employing 10 or more persons.
The Scheme has been extended to shops, hotels, restaurants, cinemas, road-motor transport undertakings and newspaper establishments employing 20 or more persons.
We have tried our level best to provide you information about “How to start a business in India”. If we have missed something or if you would like to add something here you can post the same in comment section!
tilak raj
Hi sir,
I start small data entry services
pls advise…
thanks
Money Excel
Dear Tilak Raj,
What type of advice you are looking for small data entry services.
Regards,
Jamal bk
Pls give me any ideas of samll scale business below 50000
lalit
you talk about all the formalitiesbut wht abt marketing,where candidate got place?
vipin gupta
i want to start new business in tiffen service so please tell me what type of option in tiffen service i have only 1lac, so…..
imran
Hi
can give me any ideas for small scale business below 20000
any date entry or any learning project
please give me replay fast
S dutta
I am having a Sales and Distribution company in Bangalore . I am planning to diversify my business and looking for business ideas. Interested person please mail me in (info.vozic@gmail.com).
Only hardworking and ethical persons are welcome.
Rakesh kr sepat
Im from rajasthan i will work hard can you explain me about sales & distribution
saran
I want 2 start a busines below 5 lakhs wat can i start
Junaid
Hello sir . I’m a student I want to do business or job for my pkt money as well for my bright future so please suggest me any business or job I’m studying civil engineering ..please call or mail me 8801345640
Raviraj Parekh
Try to work as Interior Designer as Professional.
Ritesh seth
I want to start wholese textiles shop.please give me advise how to bussiness.beacuse I belong to business family.
chintesh
Hi my name is chintesh .. please suggest me some business with small investment i wants to start a small business and wants to continue my Job also… i have an experience about IT admin and accounts also like service tax, Pan, ITR, trade mark etc
Raviraj Parekh
Dear Chintesh,
First start some part time business like writing account or doing a audit or may be doing IT related work. Once you get experience and knowledge you can start full-time business.
Harish
I want to start ADvertising business… Please tell me details step by step…
vinayak
We are looking for some good profitable business in Bangalore either it is overseas or domestic. hence kindly let me know if any.
prashant
hi I am planing for start t-shirt printing business by heat press method at home I need help what should I do first and where to sale
Prasad
I am living in chennai i want to start a new business but i am full of confusion which type of business suitable nowadays. So plz tell me the correct business and ideas i will invest 50,000 to 1 lakh. Plz give some valuable ideas i will waiting for ur reply
Raviraj Parekh
Dear Prasad, You can start small home based business with small investment of 1 Lakh. Tution class or Home Tiffin/food service could be suitable idea.
karthikeyan
Hi…i want to start stationary shop in my native (viruthunagar dist) south tamilnadu…from where could i buy that stationary items…pls give me some suggestions…and i want to know is this correct bussiness to do here??? My mob num 9894864070 pls give me some idea to do