STARTING BUSINESS IN INDIA-PART 1

I thought it would be a great time to put across detailed procedure on how to Start Business in India, along with the duration it will take to start your own business in India, the costs involved, the paperwork involved and procedures for starting a company in India.

Please bear in my mind that these are standard procedures and are applicable in most cities in India, however, some in some cities there are some additional (or lack of) processes that you will have to find out.

The steps given below are for incorporating a Business in the city of Mumbai.

Steps involved 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.

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NOTE: THE ABOVE COSTS ARE EXCLUSIVE OF "UNDER THE TABLE CHARGES" AND IT MAY VARY FROM PERSON TO PERSON AND BUSINESS AND THE CITY.