caMattersonline can help you start your business with ease. There are different forms of business entities that you can set up in India.
Businesses can be set up as a Proprietorship, Partnership, Limited Liability Partnership, One person Company, or a Private or Public Limited Company in India. The additional features of these can be read up at http://camattersonline.com/how-to-do-business-in-india/
Each business entity has its own drawbacks and advantages, so a person should have a clear understanding of the various models before incorporating his business.
We provide start-up counselling as well as end-to-end business registration services in India.
We help in registrations and incorporations of Schools, Trusts or NGOs in India.
Setting up School in India:
As per laws, private organizations cannot open schools in India. The schools have to be operated by a society that has been created in accordance with the Societies Act of 1860 or by a trust that has been organized as per the Public Trust Act of individual states.
A private entity willing to set up a school in India can also set up a company as prescribed by Section 25 of the Companies Act 1956.
All these legislations ensure that a school is set up as a non profit making body.
Important documents and licenses required while starting a school -
In India a lot of legal processes come into play with regard to starting a school. When the school trust or society is being formed there should be a Memorandum of Association.
This document proves to be useful at all the later stages. The owners also need to have a well laid out project report of their school.
The following details are regarded as being important as well:
- Building the land details
- Water certificates
- Hygiene certificates
- Auditor’s statements
- Bank statements of governing body and the members
- Completion of building certificates
How to Set up Public Charitable Trust :
- Trust registration is created with a document named Trust deed.
- Trust is created by the Founder (author or settler) with the trust of Trustees (who are the body of Trust)
- Trust is created under irrevocable nature.
- The Trust deed consists of objects of the trust, Operation of Trust, Trustee information, Trustee powers, rights, duties and liabilities.
- There are some procedures in creation of a trust deed. Charted accountants (Auditors) and Lawyers (Attorney) help in creation of Trust deed. After creation of Trust deed, the organization TRUST shall be registered with the Registrar or Sub-registrar office as per the laws relevant to the specific states.
- After the registration of trust, a copy of the registration is received from the Registrar.
- The PAN card application and the Income Tax registration u/s 12A is filed at this point.
- A trust shall be a public charitable trust or Private trust. Public charitable trust is able to raise funds from public to serve the social causes of the nation.
- A trust must be registered whether with movable or immovable properties.
- Trust should be registered with a "Registered office address of the trust" with proper landmarks.
- A Trust shall be registered by the founder only with the minimum of 2 members.
We help businesses in becoming Tax compliant by registering for those Tax registrations which are applicable to their business.
Service Tax Registration :
Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.
Documents Required for obtaining Service Tax Registration :
- Self - attested copy of PAN Card
- Identity proof
- Address proof
- No Objection Certificate from the legal owner
- Bank Account Details
- MOA & AOA ( in case of company )
- List of Directors ( company )
- Authorisation by the Board of Directos/ Partners / Proprietor for the person filling the application
- VAT No.
- Company Index no.
VAT Registration :
Turnover limits for the purpose of Liability/Registration [Sec. 3(4)]
|Category of dealer
||Total turnover of sales
||Turnover of taxable goods purchased or sold
It may be noted that while the total turnover of Rs. 1,00,000/- and Rs. 5,00,000/- is in respect of Turnover of Sales (which includes all sales whether tax free or taxable), the turnover limit of Rs. 10,000/- is in respect of taxable goods whether purchased or sold.
Both the conditions have to be satisfied for the purposes of liability/registration under this category. [Sec. 3(4)]
Documents required for VAT Registration :
- PAN of Dealer (PAN of partners/directors is also required in case of firm/company)
- Constitution certificate :-
- Proprietorship:- Shop Act License / If Shop Act is not applicable – Certificate form Grampanchyat
- HUF:- No document is required
- Partnership firm:- Partnership Deed
- Company :- Certificate of Incorporation issued by registrar of company, MOA and AOA
- Trust:- Certificate issued by Bombay Public trust
- Co-operative society:- Certificate issued by concern authority
- Address proof of Business :-
- In case of rented property : Rent Agreement/NOC, Electricity bill, Municipal Receipt
- In case of Own property : Electricity Bill and Municipal tax receipt
- Proof of resident :-
Any two documents are required as resident proof of proprietor or partners or directors or trustees as the case applicable.
- Driving license
- Ration card
- Electricity Bill
- Municipal Tax Receipt
- Resolution in case of company:-
- Introduction letter:-
Introduction letter of other register dealer is required in case of voluntary registration. Alternatively introduction letter can take from practicing chartered accountant or STP. To know the format of introduction letter of other registered dealer refer this article.
- For voluntary registration Rs.5000 is require to pay as registration fees and Rs.25000 as deposit. The fees and deposit can pay online or by demand draft. Demand draft of any nationalized bank should be drawn in favor of “SBI A/C MVAT”
- Registration fee for compulsory registration is Rs.500. The fees can pay by way of court fees stamp. There is no deposit for compulsory registration.
Professional tax registration certificate (PTRC) is to be obtained by the company in the role of Employer.
The company will have to deduct Professional Tax on Salaries paid by it to its employee where the salary paid to such employee exceeds Rs.7,500/- per month
Professional tax Enrollment certificate(PTEC) is to obtained by the company for its own existence and engaging in profession (and of-course business too) within the state of Maharashtra.
Profession Tax applicable to :
Salary and Wage earners-Such persons whose monthly salaries or wages :-
- do not exceed rupees 7,500; NIL
- In case of male, exceed Rs. 7,500 but do not exceed rupees 10,000; 175 per month
In case of female, do not exceed Rs 10,000; NIL
- exceeds rupees 10,000 ; 2,500 per annum to be paid in the following manner :-
- rupees two hundred per month except for the month of February
- rupees three hundred for the month of February.
Documents required for Profession Tax Registration :
- Copy of PAN Card of the Company
- Copy of Certificate of Incorporation with Memorandum & Articles of Association;
- Copy of List of Directors of the Company;
- Copy of ID Proof & Address proof of the directors;
- Copy of Board of Directors Resolution;
- Copy of List of Employees (On the letterhead of the company);
- ID Proof & Address proof of Authorized Signatory;
- Copy of Leave & License agreement of the premises;
- Copy of Leave & License agreement of warehouse premises;
- Latest Electricity Bill or Maintenance Bill of the premises;
- Latest Electricity Bill or Maintenance Bill of the warehouse premises;
- Cancelled Cheque (Original
Import Export Code
The first requirement before you start an import/ export business in India is to obtain an IEC. An IEC is necessary for import/export of goods.
In case the import/export is of services or technology, IEC is required in only limited circumstances, when import/export is in ‘specified services’ or ‘specified technologies’, i.e. services or technologies in which international trade is restricted by the Government of India as they pertain to national security, such as dealing in nuclear weapons, automatic guns, etc.
IEC is not required under the following circumstances:
- Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture.
- Import/export by government ministries and departments, and certain notified charitable organizations.
Documents Required for Applying the IEC Code :
- Covering Letter on Firm/ company’s letter head for issue of new IEC Code Number.
- Two copies of the application in prescribed format (Aayaat Niryaat Form ANF 2A ) must be submitted to the Regional Jt..DGFT Office.
- Each individual page of the application has to be signed by the applicant.
- Part D In respect to Declaration/ Undertaking ahs to be filled in and signed by the Applicant and has to be submitted along with the application.
- Rs 250.00 Bank Receipt (in duplicate)/Demand Draft evidencing payment of application fee in terms of Appendix 21B.
- Certificate from the Banker of the applicant firm in the format given in Appendix 18A.
- Self certified copy of PAN issuing letter or PAN (Permanent Account Number) Card issued by Income Tax Authority. Photocopy of PAN card has to be submitted along the application. If PAN card not issued to the applicant then a copy of PAN allotment letter from I.T. Department will also be accepted. Only one IEC would be issued against a single PAN number. Any proprietor can have only one IEC number and in case there are more than one IECs allotted to a proprietor, the same may be surrendered to the Regional Office for cancellation. Two IEC can not be issued against one PAN
- Two copies of passport size photographs of the applicant. The photograph pasted on the banker’s certificate must be attested by the banker with Seal and Signature of the applicant.
- The applicant shall furnish a self addressed envelope of 40 x 15 cm with postal stamp affixed on the envelope for all documents required to be sent by Speed Post. These documents may be kept secured in a file cover.
- The application must be submitted in Duplicate.
Shop Act Licence
A Shop Act License is applicable to
- A commercial or trading or banking or insurance establishment, or
- An establishment or administrative service in which persons employed or mainly engaged in office work, or
- A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house or
- A theater, cinema or any other place of public amusement or entertainment.
Documents Required for Shop Act :
- Commercial Address Proof
Verification (Any 2) Proof of place of business
If Own Property:
Latest Electricity Bill
Property Tax Receipt
If Rented Property:
Latest Rent Agreement
Society Maintainance Receipt
- Identity Proof Verification
- For Individual / HUF
Identity proof (Any 2) Pan Card
Residential Proof (Any 2) Copy Of Passport
- For Partnership Firm Identity proof & Residential Proof of all the Partners
(as detailed above)
Recent Partnership Deed
- For Company
(either private or public company)
Proof of Company 1 Photo Copy of the following :
Articles of Association
Memorandum of Association
Proof of Directors Identity Proof & Residential Proof of all the
promoters / current directors. (as detailed above)
- Nature of business verification If Bar and Restaurant, Wine Shop, Beer Shop, then
State Excise approval
If Medical Stores, then Food and Drugs Administration
If Cyber Cafe Police Department NOC,
Security Agency then Police Commissioner License
Man Power Supplier the Copy of Work Order of the
If Entertainment, then copy of Collector Permission
If Transportation / Tour and Travel, then RTO
If Import and Export, Clearing Forwarding, Shipping
Cargo, then License from Concerned Department
If Share Broker then SEBI Enrollment
If Trading Business, then Business Proof (Copy of
If Fire Works, then Municipal Council / Corporation
NOC, Fire Brigade NOC, Collectors NOC, Police
Any other compliances as per the nature of business
- Number of employees The fees charged by department for license depends on the number of employees employed in the concern
Employee Provident Fund
Applicability of EPF:
Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.
- Employing 20 or more persons .
- Cinema Theatres employing 5 or more persons.
Documents Required for Provident Fund Registration :
- Name of the establishment/factory and address.
- Details of Head Office and branches with address.
- Details of Code No. if any allotted to the Head Office.
- Date of Incorporation/Set up (Please furnish any one of the documents mentioned overleaf in support of the proof of date of set up of the est./factory)
- Employment Strength
(i) At present:
(ii)Month wise employment strength from the date of set up may be furnished in separate statement:
- Nature of business activity/ manufacturing activity:
- Details of legal set up of the establishment (Please mention whether it is an incorporated Private or Public Limited Company, Society, Partnership or Proprietary concern) :
- Details of the employers/ownership particulars etc. (Names, Designation and Addresses of Managing Director, Directors, Partners, Secretary etc. to be furnished) :
- Wages disbursed for the month:
- Details of Bankers: (Including Bank Branches & Account Number (s).)
- Income Tax Permanent A/c. No.
- Details of employees are furnished below:-
||Name of the employee
||Date of Joining
||Wages (basic + D.A. & Cash Value of food concession)
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last six decades.
MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth.
MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.
Ministry of Micro, Small & Medium Enterprises (M/o MSME) envision a vibrant MSME sector by promoting growth and development of the MSME Sector, including Khadi, Village and Coir Industries, in cooperation with concerned Ministries/Departments, State Governments and other Stakeholders, by providing support to existing enterprises and encouraging creation of new enterprises.
Registration of Micro, Small and Medium Enterprises for two types of Companies:-
||Type of Enterprise
||Manufacturing Enterprises (Investment in Plant and Machinery)
||Service Industry (Investment in equipment)
||Does not exceed Rs. 25 Lakh
||Does not exceed Rs. 10 Lakh
||Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore
||Exceeds Rs. 10 Lakh but does not exceed Rs. 2 Crore
||Exceeds Rs. 5 Crore but does not exceed Rs. 10 Crore
||Exceeds Rs. 2 Crore but does not exceed Rs. 5 Crore
Schemes available under MSME
- Udyog Aadhar Memorandum (UAM)
- IP Facilitation Centre for MSME
- Design Clinic
- Lean Manufacturing
- Quality Management Standards & Quality Technology Tools
- Technology and Quality Upgradation
- Marketing Assistance and Technology Upgradation
- Zero Defect Zero Effect
- Facilitation Counciles
- Grievance Monitoring System
- Credit Linked Capital Subsidy Scheme
- Cluster Development Programme
- Women Entreprenurship
- Credit Guarantee (CGTMSE)
- Prime Minister Employment Generation Programme (PMEGP)
- Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
- MSME Schemes
- MSME Project Profiles
- Data Bank
- Public Procurement Policy
- National MSME Trainee Database
- Tool Rooms - SDMIS
- MSME-DI Training
SSI stands for Small Scale Industries. Registering an organisation as an SSI will entitle the organisation to various benefits.
Manufacturing Entity- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
Service Entity- The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
Benefits of Registering :
Even though there is no statutory basis for SSI registration, organisations would normally get registered to avail some benefits, incentives or support given either by the Central or State Government. Some of the incentives are as follows :
Credit prescription (Priority sector lending), differential rates of interest
Excise Exemption Scheme
Direct Tax exemption
Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word SSI in their exemption notifications.