OTHER STATUTORY COMPLIANCES FOR STARTING A BUSINESS – PRIVATE LIMITED COMPANY ARE MENTIONED HERE. FOR BUSINESS INCORPORATION DETAILS, CLICK HERE.
Step 2. Obtaining a PAN (Permanent Account Number)
It is mandatory to quote PAN in return of income and during all correspondence with the Income-tax authorities. Moreover it is also compulsory to quote PAN in all documents pertaining to economic or financial transactions. The Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to manage IT PAN Service Centre in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centres. The PAN application is made through the above mentioned service centers using Form 49A (for residents), with a certified copy of the Certificate of Incorporation, issued by the Registrar of Companies, along with proof of company address and personal identity.
Step 3. Obtaining a Tax Account Number (TAN)
While filing returns of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS), it is mandatory to mention the TAN number in the form. TAN should be applied through Form No 49B along with ‘proof of identity’ and a ‘proof of address’ (photocopies) of the deductor. In case, the application is made online, these documents need to be sent over mail (post/courier) to NSDL – TAN Application division.
Step 4. Register with the Office of Inspector, Shops, and Establishment Act (State/ Municipal)
The owner of every establishment shall, within 30 days of the opening of the business, submit to the Shops and Establishment Office, an application in triplicate of Part 1 of Form B along with the applicable fees for registration of the establishment. A statement containing the employer‘s and manager‘s names and the establishment’s name (if any) and postal address, Memorandum and Articles of Association of the company, Certified copy of the Certificate of Incorporation of the company and Board resolution for registration under the Act, must be sent to the local shop inspector. After the details and the prescribed fees are received and the correctness of the statement submitted is satisfactorily audited, the certificate for the registration of the establishment is issued as per the provisions of the Act.
Step 4. Register for Value-Added Tax (VAT)
VAT registration is required if the business is engaged in trading of goods and materials, i.e. sale and purchase. VAT registration is done with the sales tax department of respective state, where business is established or proposed to be established. The common list of documents required for registration of VAT is:
- Application in VAT (Form 1).
- Additional application for CST registration (Form A).
- Professional tax registration (Form 2).
- Copy of the rental agreement of the business place.
- Copy of the address proof, ID proof of the Proprietor / Partner / Director
- Four PP size photographs of Proprietor / Partner / Director
- PAN No. & Bank Account Number
- Details of business activities.
- Memorandum of Association and Articles of Association.
Step 5. Registration of Profession Tax
Every employer (not being an officer of the government) liable to taxation shall obtain a certificate of registration from the registering authority using Form 1. Depending on the nature of the business, the application should be supported with such documents as proof of address, details of company registration number, company deed, certificates under any other act, and so forth. After verification, a regular registration certificate is issued. Application should be filed within 90 days of the date of accrual of liability. The registration certificate is issued by the Profession Tax authorities on Form IA.
Step 6. Service Tax Registration
Step 7. Opening a Bank Account
Once your company has been incorporated you can open a Current account in any of the leading banks for carrying out your operations. You will need to submit a copy of Certificate of Incorporation and Memorandum of Association along with Board resolution to open the bank account.
POST START-UP ACTIVITIES, THERE ARE OTHER COMPLIANCES TO BE FOLLOWED ON MONTHLY/ ANNUAL BASIS BY PRIVATE LIMITED COMPANIES. THESE ARE MENTIONED IN MY NEXT POST.