STEP BY STEP GUIDE TO SETUP A COMPANY IN INDIA

STEP BY STEP GUIDE TO SETUP A
COMPANY IN INDIA
With many foreign entities looking to set up enterprises, there are a few things
to consider when you’re going for registering your business in India. With that
in mind, here are a few fundamental steps that are necessary for registering
any business in India:
1. Checking the Company Name Availability
Before any company registration can take place, you must check whether the
proposed name is available. This can be done online, where applicants may
check the availability of their desired company names on the MCA 21 website.
Once approved, the selected company name appears on the website.

2. Acquiring a Director Identification Number (DIN)
A Director Identification Number (DIN) is a special identification number that is
provided to any existing or potential directors of companies that are
incorporated. A provisional DIN can be obtained by filling a DIN-1 application
form online.
Then, a printed and signed version of the form must be forwarded to the
ministry along with identity and address proof for their approval. A permanent
DIN is issued after the verification of the documents.
3. Acquiring a Digital Signature Certificate
A digital signature certificate is an issued electronic key that validates and
identifies the holder of this certificate. One of the approved agencies
registered with the ministry can issue this certificate. An application form,
identity proof, and permanent address proof must be submitted by the
company directors when applying for a Digital Signature Certificate.
4. Obtaining an Incorporation Certificate
An incorporation certificate is provided by the Ministry of Corporate Affairs and
is used as proof for the constitution of the company. To apply, the following
forms must be digitally filed on the official Ministry of Company Affairs website
– e-form 1 and e-form 18, e-form 32.

The certificate of incorporation will be automatically sent to the e-mail ID as
provided in the information submitted with the forms while incorporating the
company.
5. Creating a Company Seal for official documents
A company seal is required to be placed on papers for sharing certificates and
other official documents. The total cost of acquiring an official seal is
dependent on the number of words that need to be engraved on it, the
number of seals issued, and the time period for the delivery of the seals. It is
to be noted here that the requirement to maintain a company seal is not
mandatory for private companies.
6. Stamping of all Company Documents
The application to have the company’s incorporation documents stamped
must always have the unsigned copies of the Memorandum and Articles of
Association attached alongside the payment receipt for the same. Stamp duty
should be paid online for such documents to the Registrar of Companies.
Following this application, the Superintendent will return the copies – one of
which is stamped, signed and embossed in an official capacity. Finally, the
company promoters must sign the MoA and AoA, with all required information
being filled in their own handwriting.
7. Tax Account Number (TAN)

As per the Government of India, a Tax Deduction Account Number or Tax
Collection Account Number (TAN) is a special number issued by the
Income-tax department to all entities who are required to either deduct or
collect tax at the source. The application for a TAN can be done either offline
or through the NSDL website.
8. Permanent Account Number (PAN)
Filing of Form 49A is required for the application of PAN. Once a unique PAN
is acquired, a physical version of the PAN card will be delivered to your
registered address by official post. The PAN application may also be done
online, but the required documents will still need to be physically sent for final
verification.
9. Obtaining a certificate from the State/Municipal Inspector under
the Shops and Establishment Act
A statement that includes the employer/manager’s names, company’s
designated name and permanent postal address and business category must
be provided to the State Shop and Establishment Inspector along with the
payment of applicable fees. This is a vital step in trade license registration as
all companies must be registered within one month (30 days) of the opening
of their business.
10. Apply for GST Registration
GST registration is mandatory for any entity seeking to undertake the supply
of goods and services across states while maintaining an annual aggregate
turnover of more than INR 40 lakhs/20 Lakhs. This should be prioritized

before any other process for new company registration. For further information
on GST Registration and documents required for the application.
GST registration is mandatory if you are a seller
1. Obtaining a Profession Tax Certificate from the State Profession
Tax Office
Every employer (who is not a government officer) is liable to taxation and must
obtain a certificate of registration from the relevant authority. A company is
required to file Form 1 to the State Profession Tax Office to apply for the
Profession Tax Certificate, if applicable.
2. Completing a National Employees’ Provident Fund Registration
Every employer is required to provide their worker information to the local
Employee Provident Fund Organization (EPFO). This must be done in the
prescribed manner so that an Establishment Code Number (ECN) can be
allotted to the company. This process is within the sole purview of the
employer, and no separate applications need to be made by the employees.
Note that this will only be required if the provisions of the Employees’
Provident Fund and Miscellaneous Provisions Act, 1952 are applicable on the
company.
All foreign entities can use INDCORPORATE for setting up a business in
India or setup a subsidiary in India which covers all above legal procedures
as well as compliance & company accounting for your new company in
India.