Business formation is not a matter of purchasing goods and starting selling or providing services. Getting a stable business requires various legal services.
The first step towards business formation is getting all-in-one tax-related details under the regime of PAN Card. It is essential to register your business and conduct other financial transactions.
Next, the business requires a GST number. Because in India, it is mandatory to have a GST number for conducting any business and offering any kind of service.
However, establishing a business requires a lot more than this. For that, My Tax Advisor offers services like EPF (Employees Provident Fund Scheme), ESIC (Employees State Insurance Corporation), MSME, Shop & Establishment, Digital Signature Registration, PTEC and PTRC, and TradeMark.
The services of My tax Advisor are not limited here. We offer the Import-Export Code Registration service too. Our aim to get your business to commendable value by registering a company and sound formation of a business.
Goods and Service tax
In order to supply goods and products in India, it is mandatory to do GST registration. Once you have registered under this regime, you will receive a unique GSTIN (Goods and Service Tax Identification Number). The Central Government issues a state-wise, 15-digit number to you once you complete registration. There are many advantages of GST registration including the fact that you will get a legal identity as a supplier. You can also avail input tax credit and collect GST from recipients of goods and services.
The following categories of businesses are required to register for GST Compulsory
- Interstate suppliers.
- Casual Taxable persons.
- Persons taxable under the reverse charge basis.
- Non-resident taxable persons.
- Persons required to deduct TDS/TCS under GST.
- Input Service Distributors.
- Persons making a sale on behalf of someone else whether as an Agent or Principal.
- Every E-commerce Operator who provides a platform to suppliers to make supply through it.
- Online Service Providers providing service from outside India to a non-registered person in India.
- Suppliers who supply goods through E-commerce operator who is liable to collect tax at source.
Documents for Registration
Sole Proprietorship / Individual | Partnership / LLP | Pvt Ltd Co / Public Ltd Co / OPC |
Aadhaar card, PAN card, and a photograph of the sole proprietor | Aadhaar card, PAN card, photograph of all partners. | Company’s PAN card |
Details of Bank account- Bank statement or a cancelled cheque | Details of Bank such as a copy of cancelled cheque or bank statement | Certificate of Registration |
Office address proof: | Proof of address of Principal place of business and additional place of business: | MOA (Memorandum of Association) /AOA (Articles of Association) |
In case of LLP – Registration Certificate of the LLP: | Aadhar card, PAN card, a photograph of all Directors | |
Details of Bank – Bank statement or a cancelled cheque | ||
Proof of Address of Principal place of business and additional place of business: | ||
Appointment Proof of authorized signatory – letter of authorization |
Permanent Account Number
PAN is an electronic system through which, all tax related information for a person/company is recorded against a single PAN number. This acts as the primary key for storage of information and is shared across the country. Hence no two tax paying entities can have the same PAN.
Why do you need PAN?
- PAN is a unique identification number that enables each tax paying entity of India with the following:
- Proof of Identity.
- Mandatory for Filing Taxes.
- Registration of Business.
- Financial transactions.
- Phone Connection.
- Gas Connection
- Mutual Fund – PAN is beneficial to complete e-KYC for mutual fund investments.
Documents for PAN
- Aadhaar card.
- 2 Photos of Applicant in case of Individuals.
- Proof of Date of Birth / Date of Incorporation.
- Certificate of Incorporation / Partnership deed.
- Address Proof.
Digital Signature Certificates (DSC)
Digital Signature Certificates or DSC or Digital Signature are being adopted by various government agencies and now is a statutory requirement in various applications.
WHY do you need DSC ?
- MCA e-filing.
- Income Tax e-filing.
- LLP registration.
- GST application.
- IE code registration.
- Form 16.
Documents for DSC
- PAN.
- Aadhaar card.
- 2 Photos.
Professional Tax Maharashtra
Any person who is engaged in any profession, Trade, callings and employment in the State of Maharashtra is liable to pay Profession Tax. A person includes Hindu undivided family, firm, company, corporation or other corporate body, any society, club or association.
There are 2 types of Profession Tax payers
- Profession Tax Enrollment Certificate (PTEC) : Any person engaged in Profession, Trade and Callings and falling under one or the other of the classes mentioned in the second column of Schedule I shall obtained PTEC.
- Profession Tax Registration Certificate (PTRC) : Every employer who has employed even a single employee whose salary is above the prescribed limit for deducting Profession Tax shall obtain PTRC.
Documents Required for PT Registration
- Copy of PAN.
- Partnership Deed / Certification of Incorporation.
- Address Proof of Place of Business.
- Address Proof of Proprietor / Partner
- Aadhaar Card of Proprietor / Partner / Director.
- Photograph of Applicant.
- Cancelled Cheque.
Shop and Establishment License
The Shop and Establishment Act is regulated by the Department of Labor and regulates premises wherein any trade, business or profession is carried out. This act regulates areas such as working hours, rest interval for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, annual leave, maternity leave, sick and casual leave, etc. According to the Maharashtra Shops and Establishment Act 1948, the shop establishment certificate is known as Gumasta License.
WHY Shop and Establishment License?
- Regulation of working hours.
- Proper guidelines for record-keeping.
- Rules regarding Weekly-offs, working conditions and wages.
- Regulates the work, rules for employment of children, young persons and women.
Information that needs to be furnished for Shop and Establishment License Registration | The documents Required for Shop and Commercial Establishment Registration |
Name of firm | Aadhar Card / Voter Id / Driving License / PAN |
Address of Firm | Photo of Owner |
Name of Manager, if any | Photo of Shop along with Owner ( you can Click with Mobile Phone as well ) |
Nature of Establishment | Rent Agreement, if Rented |
Number of Employees in the Establishment | Electricity Bill |
Ministry of Micro, Small and Medium Enterprises (MSME)
Recently Government of India has introduced various schemes, subsidies and incentives to promote MSME (Micro, Small and Medium Enterprises) through MSMED act. Not only the government but banks are also providing loans to these MSMEs at very concessional rates to set their first brick of the business. However, to get these benefits from the central and the state government or the banking sector, you would have to apply for MSME Registration. Udyog Aadhaar used to be referred to as MSME registration earlier. The Government of India has made it compulsory to have an Aadhar Number for Registration under the MSME act.
What Are The Different Types of MSMEs?
Micro Enterprises
Micro-enterprises are the smallest entities of course. The investment under Micro manufacturing enterprises should be less than ₹25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed ₹10 lakhs investment.
Small Enterprises
In small manufacturing enterprises, the investment should be in between ₹25 lakh and ₹50 crores in plant and machinery, while in small service enterprises this investment limits between ₹10 lakh and ₹2 crores
Medium Enterprises
And if we’ll talk about the Medium manufacturing enterprises. then the investment should be in between ₹5 crore and ₹10 crores in plant andmachinery, and for small service enterprises. It should be in between ₹2 crore and ₹5 crores
WHY MSME ?
- Bank Loans (Collateral Free).
- Subsidy on Patent Registration.
- Excise Duty Exemption schemes.
- Tax Subsidy
- Protection against Payments (Delayed Payments)
- ISO Certification Charges Reimbursement
Documents Required for PT Registration
- Aadhaar card
- Name of applicant
- Social category
- Gender
- Name of Enterprise/Business
- Type of Organization you are opting for PAN number
- Location of Plant you are setting up in a place
- Current office Address
- Mobile Number
- E- Mail ID
- Location of Plant you are setting up in a place
- Date of Commencement of Business
- Bank Account Number
- Bank IFS Code
- Main Business Activity of Enterprise
- NIC 2 Digit Code
- Number of employees
- Investment in Plant & Machinery / Equipment
Import & Export Code
Import Export (IE) Code is a registration required for persons importing or exporting goods and services from India. IE Code is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India.
IEC Documents In Respect of Individual/Proprietor / Partner / Director
- Copy of PAN Card
- Passport size photograph
- Copy of Aadhaar Card/ Voter identity card
- Authorization letter (In case of Partnership)
- Authority from other Directors on letter head (In case of company)
- Copy of Partnership deed ( In case of Partnership)
- Board Resolution/self declaration (In case of Company)
- Telephone Bill in the name of the individual (In case of individual)
- Cancelled cheque of individual
IEC Documents In Respect Of Entity
- Copy of PAN Card firm/company
- Copy of Property papers (If owned property)
- Copy of Rent agreement (If rented property)
- Landlord NOC (Format will be provided by us)
- Cancelled cheque of firm
- Electricity / water bill (Business Place)
- Telephone Bill in the name of the business
- Copy of Service Tax returns (In case of Proprietorship)
- Certificate of incorporation (In case of company)
- Bank statement of firm / company
- AOA and MOA (In case of company)
- 1 letter head of company (In case of Company)
Features - Import Export Code (IE Code)
Trade Mark
A trademark can be a phrase, logo, design and combination of colours or shapes etc. and that denotes the uniqueness of a brand or the product and differentiates from competitors. It may be in the form of a number, a word, a symbol, etc. It is an intangible asset used to protect the company’s investment in the brand or symbol. Proposed trademarks that are similar or identical to an existing registered trademark cannot be registered. A trademark can be registered only if it is distinctive for the goods and services you provide. Any person or legal entity can file a trademark application in India.
Documents required for Trademark Registration
- Applicant Name
- Address of the Applicant
- Scanned copy of Company Registration
- Certificate PAN Card or Passport or Election ID Card
- JPG Format of Logo/Brand Name
- MSME Registration certificate
- Full name of all the Partners/Directors
- Nationality, Mobile No. & Email Id of the Signatory
- Mark/Brand Name
- Trade Description of all Goods/Services provided
- Whether the applicant is Manufacturer /Trader/ Service Provider
- User Date of the Brand/Mark
- Service Address (Write the address of the place where you want the Trademark registry to communicate with you)
Employee Provident Fund Scheme
Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 is social security legislation for the future benefit of employees & their dependents; in case of unfortunate incidents occurring in the future. Every establishment which is a factory engaged in any industry in which 20 or more persons are employed. The total strength of employee Includes contractors or temporary employees like housekeeping staff, daily wage worker, security or other temporary workers in the business. Even if a company has an employee strength of less than 20 then the company can voluntarily apply for EIN (Employer Identification Number). Company has to obtain EPF registration certificate within 30 days from the date of employment of 20 employees.
Both the employee and employer contribute 12% of the salary. The employer’s part consists of 12% of basic wages + dearness allowance + retaining allowance.12% of the basic salary that is deposited in provident fund account is contributed by the employers, whereas out of employee contribution of 12%; 3.67% is contributed to provident fund and 8.33% is submitted in Pension scheme.
Documents Required for EPF Registration
- Statement showing Employee Strength from Date of Starting the Business with Date of Joining (Employee strength month wise since the date of incorporation)
- Premises Proof of the company (Preferably electricity Bill and Rent agreement both)
- List of employee (name, fathers name, date of birth, date of joining, salary)
- Affidavit of director for applicability date
- Power of attorney in the name of advocate
- Copy of two work orders
- 1st Sales Bill/ Service Bill, Any pronto Tint product/ Work Order
- Lease Deed / Rental Agreement
- Copy of Board Resolution
- Copy of P&L and Balance sheet last 3 years
- Certificate of Incorporation
- Partnership Deed / MOA and AOA
- Performa of Coverage
- Copy of Telephone Bills/EB Bills
- Demand Draft for contribution collected
- Sales Tax / Service Tax / Shops & Establishment Act Registration certificates (if any)
- Pan Card of Company
- Bank Statement of Company
- Cancelled Cheque of the company
- Form 5A
- Address Proof and ID Proof of Directors
- Registered in Contracts Act - Copy of Registration Certificate
- Registered in Contracts Act - Copy of Registration Certificate
- Form 13 performance of coverage
Do You Know?
- The employer before paying the employee’s salary must deduct the employee’s contribution from his wages. Then the employee portion and employer portion are payable to the EPFO within 15 days of the close of every month.
Employee State Insurance
Employee’s State Insurance Corporation (ESI) is a self-financing social security and health insurance scheme for Indian workers. The scheme provides Employees monetary and medical benefits in case of sickness, maternity and employment injury and to make provisions for related matters. The ESIC Act also provides reasonably good medical care to the workers and their immediate dependents. Online ESIC registration is compulsory for entities employing, employees earning Rs. 15,000 per month or less as wages or salary.
Documents Required
- Form 01: - Employer's Registration
- List of minimum 10 or 20 Employees with their Date of Joining and Salary
- Memorandum of Association
- Article of Association along with Certificate of Incorporation/ Partnership Deed as applicable
- Copy of the PAN Card
- A copy of the Bank Statements
- GST Registration
- Copy of Factory/ Shop & Comm. EST Registration