There is nothing more enriching for the mind and satisfying for the soul like being your own master. Working for some MNC with a fat paycheck and deadly hours doesn’t even come close. If you are thinking of starting your own business, know that the mere experience of attempting entrepreneurship will make you a more confident and organised person. So what are the steps you should follow (provided you have a really good business idea) in order to venture out in the SME sector?
Documentation requirements for an Indian Start Up
The first step is to obtain Director Identification Number (DIN) from the department of corporate affairs. You can get the form from the website of Ministry of Corporate Affairs (MCA). Usually, it takes 1 day and Rs 100 to get this done.
The online digitized signature certificate has to be obtained from a third party agency duly certified by the ministry of Foreign Affairs. TCS is one company which offers this service. Depending upon the service provider the cost will range from Rs 400- Rs 1500 and will roughly take 3 days.
The company name should be registered with the MCA. The Registrar of Companies in Mumbai has roughly 58 applications coming in daily for new name registrations which have to be checked for duplicity and compliance issues. The whole process will take 2 days and Rs500.
Next the company documents have to be duly stamped by the treasury office or any authorized bank. The total cost will come around to Rs 1300 and docs to be stamped are Form 1, Memorandum of Association as well as Articles of Association.
You need to then apply for a “Certificate of Incorporation” with the Registrar of Companies. Go to the MCA website to fill up e forms (1, 18 and 32). This will take around 5 days and Rs 14,133.
Finally you are ready to develop your own private seal. This is not a compulsory step though it is recommended for authenticity issues. You can get this in 1 day and at the cost of Rs 300.
Obtain a PAN number from NSDL (National Security Depositary Limited or UTI Investor services Ltd. This will take only Rs.67 and a week’s time.
Tax registration number and Value added tax pin has to be obtained from the IT office and Employee Provident Fund has to be registered. This takes about 3 weeks and no cost. This can be concurrently done with above mentioned processes.
Indian Business Scenario
India is not known for an easy business environment. The 2010 PERC (Political and economical Risk Consultants) Survey labeled India as one of the leaders in red tape bureaucracy. The World Bank also gave out a ranking of 135 amongst 180 nations surveyed for “Ease of doing Business” report. On the other side, most documentation and registration processes are done online, smoothening the way for entrepreneurs.
India is also recognized as a country which facilitates rapid earnings once the business is successfully in the run. So, get your business duly documented and registered; here’s wishing you all the best.