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How To Register Your Small Business In India

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Samikshya Borse

Story By: Writer, Blogger

"To enjoy life, we must touch much of it lightly."

- Voltaire

 

The ease of doing business in India has improved notably, according to a new report from the World Bank. A series of reforms have made it easier for companies to obtain construction permits, trade across borders and pay taxes. India has jumped 23 spots from last year and now ranks 77 out of 190 countries on the list. It is also among the top 10 most improved economies, which is exciting news indeed. 

 

For any entrepreneur, starting a business is not a cup of tea. It takes a lot of passion, determination and the most important thing, registration. Whether you are starting a business in manufacturing, retailing or service providing, small business registration is the first step before starting out. 

 

Especially for small businesses, registration is vital. For this, first you have to choose the right form of organization. In India, there are 8 types of business organizations that you must select based on your business goals.

 

Registration may seem like a long, exhausting process and a lot of people are often confused about what documents are required or what exactly the whole process entails. 

 

Read:- 5 Things You Should Do While Starting Your Photography Business

 

So to make things a little clearer, here is the step by step process of small business registration and exactly which documents are required – 

 

1. Obtain Digital Signature – 

 

digital-signature

 

This is the first step of registration. It is an identity of any business. You can use this digital signature in India for many online transactions. It includes filing annual return, income tax e-filing, e-tenders, etc.

 

2. Get your Director Identification Number (DIN) –

 

director-identification-number

 

This is a unique 8 digit number which is required for any existing or proposed Director of a company. It is an easy, one day process and you can even apply for it online.

 

Read:- Why is Blogging necessary for Small Businesses?

 

3. Secure your Company Name –

 

Secure Company Name | Bulb And Key

 

Giving a name to your company and securing it right away is extremely important, without a doubt. There is a form called INC-29 in which you have the option of giving a single name for your company. You can also check if there is already a business or entity having the same name.

 

4. Prepare the Memorandum and Articles of Association –

 

Prepare the Memorandum | Bulb And Key

 

These two documents have to be attached with the INC-29 form. They are very important so you will have to make these documents very carefully. Some important aspects of it are Main Object, Authorized Capital, Share Participation, Registered Office, etc.

 

Read:- Why Customer Service Is Important For Your Small Business

 

5. File the INC-29 and get the Incorporation Letter –

 

INC 29 | Bulb And Key

 

Although you will need several documents for this, it is a one day process. Any kind of error leads to resubmission of this form. Filing of the single INC-29 form will grant you the incorporation certificate.

 

6. Obtain the Permanent Account Number –

 

 

This is the most important document without which any kind of business registration is not possible. You can obtain it from an authorized franchise or agent appointed by the NSDL or the UTI, as outsourced by the Income Tax Department. 

 

7. Open a Current Account –

 

Current Account | Bulb And Key

 

You can open a current account from any nearby bank. Make sure to choose the account type carefully. 

 

Read:- How to do Bookkeeping for a Small Business

8. Get MSME Udyog Aadhaar Registration –

 

MSME Udyog Aadhaar Registration | Bulb And Key

 

This is a simple process and you can apply for it online as well. The Udyog Aadhaar Memorandum is an initiative of MSME Ministry Govt. of India. Its main objective is to simplify the registration process for entrepreneurs and to promote ease of doing business.

 

9. Obtain your TAN Number –

 

TAN Number | Bulb And Key

 

This number is important for tax payment. You can get it from the Assessing Office of the Income Tax Department of your state. 

 

10. Service Tax Registration –

 

 

This, as the name suggests, is a tax on services. It used to be mandatory, but after the GST was initiated, it has become obsolete. 

 

Read:- How To Do Marketing Of Your Custom Printing Business

 

11. Obtain Shops & Establishments Act

     License –

 

Shops & Establishments Act License | Bulb And Key

 

Every shop and establishment comes under the Act within 30 days of commencement of work, whether or not it has employees. 

 

12. Get GST Registration –

 

gst registration

 

Every existing and new business needs to get this done. But under the GST Regime, businesses with a turnover of less than Rs 40 lakhs per annum do not need to take this registration. 

 

13. Professional Tax Registration –

 

Professional Tax | Bulb And Key

 

This is mandatory for all types of businesses. You have to register within 30 days of employing staff in your business.

 

Read:- How To Apply For An FSSAI Registration For Your Home Baking Business

 

14. Obtain IEC Code –

 

IEC CODE | Bulb And Key

 

This stands for Importer Exporter Code and is a 10 digit number. You must obtain this license for any kind of foreign trading. 

 

15. Custom Duty –

 

Custom Duty | Bulb And Key

 

It is imposed on import and export of goods. While it is an important requirement, all businesses do not need it. So check if your business needs custom duty or not. 

 

16. NOC from Pollution Control Board –

 

NOC

 

One little-known fact is that there are three types of permission – red, orange and green. You first need to check whether or not your business requires an NOC from the Pollution Control Board. 

 

Read:- How To Start A Cake Baking Business From Home

 

17. FSSAI Registration –

 

FSSAI Registration | Bulb And Key

 

This license is mandatory for all food startups. It includes bakeries, restaurants, food franchise outlets, canteens, cafeterias and even small kitchens.

 

18. Apply for AGMARK –

 

AGMARK | Bulb And Key

 

It is a certification mark in India given specifically for agricultural products, to ensure that they conform to a set of standards approved by the Directorate of Marketing and Inspection, which is the certifying agency of the Government of India.

 

19Obtain Intellectual Property Registration –

 

Intellectual Property Registration | Bulb And Key

 

By doing this, you can protect your company or product brand name. You can also protect any innovative product from being duplicated. In our country, Intellectual Property Rights like trademarks and patents are controlled by the Controller General of Patents, Designs and Trademarks. 

 

20Register with Employees Provident Fund –

 

Employees Provident Fund | Bulb And Key

 

It is applicable to companies employing 20 or more persons and engaged in industry notified under Section 6 of the Act.

 

21. Register with Employees State Insurance Corporation –

 

Employees State Insurance Corporation | Bulb And Key

 

This scheme provides monetary and medical benefits to employees. Some of these benefits are maternity, sickness and employment injury. 

 

Read:- Tools You Need To Start A Gardening Business

 

Samikshya Borse

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