About Company Registrations and check list
GST Registration
In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.
For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply
- Businesses having annual turnover morethan Rs 20 Lakhs Per Annum (Rs 10 Lakh for North Eastern States)
- If business is dealing in more than one state
- If your business has previous registration under VAT, Excise Laws, Service Tax Laws
- Selling your goods or services online (like selling on Amazon and Flipkart)
- If you are providing services and goods outside India.
- PAN card of the applicant or business
- Proof of registration of business or incorporation certificate
- Address proof of the place where the business is being carried out
- Identity and Address proof of the promoters along with their photographs
- Bank Account statement
- Digital Signature
ESI Registration
ESI is a contributory fund that enables Indian employees to participate in a self-financed, healthcare insurance fund with contributions from both the employee and their employer.
The scheme is managed by Employees’ State Insurance Corporation, a government entity, that is a self-financing, social security, and labor welfare organization.
The entity administers and regulates ESI scheme as per the rules mentioned in the Indian ESI Act of 1948.
ESI is one of the most popular integrated need-based social insurance schemes among employees. The scheme protects employee interest in uncertain events such as temporary or permanent physical disability, sickness, maternity, injury during employment, and more. The scheme provides both cash benefits and healthcare benefits.
- Medical Benefit
- Sickness Benefit
- Maternity Benefit
- Disablement Benefit
- Dependent Benefit.
- Funeral Benefit
- Unemployment Allowance
- Copy of pan of company/partnership/firm
- Copy of Certificate of Incorporation / Registration certificate
- Copy of Bank Statement
- Copy of all licenses issued in the name of establishment
- A cancelled cheque
- Copy of electricity Bill
- Copy of rent/ lease agreement
- Copy of pan and voter id of directors/partners
- Copy of Board Resolution
- List of all employees employed directly by the company or by the contractor
- Following information/details are also required in addition to the above documents
EPF Registration
Employees’ Provident Fund or EPFis a popular savings scheme that has been introduced by the EPFO under the supervision of the Government of India.
The savings scheme is directed towards the salaried-class to facilitate their habit of saving money to build a substantial retirement corpus.
The EPF scheme has catered to over 5 Crore individuals and is directed by three different Acts, namely, the Employees’ Provident Fund Scheme Act, 1952, the Employees’ Deposit Linked Insurance Scheme Act, 1976 and the Employees’ Pension Scheme Act, 1995.
The fund is built with monetary contribution extended by employees and their employer each month. Both parties extend 12% each of the employees’ monthly salary, as their share of contribution towards EPF.
The fund thus built accrues a pre-fixed rate of interest that has been set by the Employees Provident Fund Organisation. The accrued interest on the EPF is tax-free and can be withdrawn without paying for the same. Employees avail a lump-sum amount on their retirement, which is inclusive of the accrued interest.
Individuals can apply to avail various online services of EPF India by accessing the official portal. The EPF online portal is a user-friendly platform that ensures to keep the flow of services transparent, efficient and hassle-free.
- Capital appreciation
- Corpus for retirement
- Emergency corpus
- Tax saving
- Easy premature withdrawal
- Copy of partnership deed if the company is a registered partnership firm
- A copy of the Certificate of incorporation for a Public or Private Limited Company.
- Societies should furnish a copy of their registration certificate
- Societies should furnish a copy of the rules and objects of the society
- All legal documents which might be required under the Income Tax Act
- PAN details of the company
- Public and Private Limited Companies need to submit a copy of memorandum and Articles of Association
- Partition deed
- Proof of incorporation – first sales invoice/ license issued by competent authorities
- Salary details of employees
- Balance sheet details
Professional Tax
Professional tax can be defined as a tax that is levied by a state government on all individuals who earn a living through any medium. This must not be confused with the definition of other professionals such as doctors or lawyers. This is a type of tax that needs to be paid by each and every individual earning income. The calculation of this tax and the amount collected differs from one state to another. However, the limit has been set to Rs. 2500 per year.
If you are a salaried employee with a Basic + Dearness Allowance less than Rs.15,000 per month, it is mandatory for you to be opened an EPF account by your employer. Organizations with 20 or more employees are required by law to register for the EPF scheme, while those with fewer than 20 employees can also register voluntarily. If you are drawing a salary higher than Rs. 15,000 per month.
- PAN Card of Company and must be attested by the Director of the Company.
- Incorporation Certificate of the Company.
- Memorandum and Articles of Association (MOA).
- Address Proof of the Company – Ownership papers in case the premise is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.
- Bank Account of Company, Cancelled Cheque and Bank Statement.
- List of Directors.
- Passport Size Photographs of all Directors.
- Documents of the Directors – PAN card, ID proof such as Passport, Driving License, Voter Card, Aadhaar Card is acceptable and Address proof as Electricity Bill, Telephone Bills and other utility bills.
- Aadhaar Card of the Company.
- Board Resolution passed by the Director of the Company authorizing Professional Tax Registration.
- Attendance Register & Salary Register.
- Authorization Letter for obtaining user I.D. and Password of Professional Tax Department.
Digital Signature
A Digital Signature Certificate (DSC) is a secure digital key that certifies the identity of the holder, issued by a Certifying Authority (CA). It typically contains your identity (name, email, country, APNIC account name and your public key). Digital Certificates use Public Key Infrastructure meaning data that has been digitally signed or encrypted by a private key can only be decrypted by its corresponding public key. A digital certificate is an electronic “credit card” that establishes your credentials when doing business or other transactions on the Web.
Individuals and entities who are required to get their accounts audited have to file their income tax return compulsorily using a digital signature. Furthermore, the Ministry of Corporate Affairs has made it mandatory for companies to file all reports, applications, and forms using a digital signature only.
Under GST also, a company can get registered only by verifying the GST application through a digital signature. The use of a digital signature is necessary even for filing all applications, amendments and other related forms.
Following are the requirements for Applying for Digital Signature Certificate
1.Submission of DSC Application form duly filled in by the applicant
2. Producing Photo ID proof
3.Producing Address proof
Shop & Establishment
The Shops and Establishment Act is a state legislation act and each state has framed its own rules for the Act. The object of this Act is to provide statutory obligation and rights to employees and employers in the unauthorized sector of employment, i.e., shops and establishments. This Act is applicable to all persons employed in an establishment with or without wages, except the members of the employers’ family.
This Act lays down the following rules:
- Working hours per day and week.
- Guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work.
- Employment of children, young persons and women.
- Rules for annual leave, maternity leave, sickness and casual leave, etc.
- Rules for employment and termination of service.
- Documents to prove the existence of the firm: e.g.
- Certificate of incorporation / Partnership deed
- PAN Number
Pan Registration
PAN Card is important for taxpayers as it is necessary for all financial transactions and is used to track the inflow and outflow of your money. It is important when paying income tax, receiving tax refunds, and receiving communication from the Income Tax Department.
Application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through Internet.
Documents accepted as Proof of Identity –
Copy of:
- Voter’s ID card
- Passport
- Aadhar card
- Ration card having Applicant’s photo
- Driving License
Import / Export License ( IEC )
IEC (Import Export Code) is required by anyone who is looking to kick-start his/her import/export business in the country. It is issued by the DGFT (Director General of Foreign Trade). IEC is a 10-digit code which has a lifetime validity. Predominantly importers merchant cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc. without IEC.
- IEC assists you in taking your services or product to the global market and grow your businesses.
- The Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.
- IEC does not require the filing of any returns. Once allotted, there isn’t any requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.
- It is fairly easy to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.
- IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity against all export and import transactions
For IEC Code Registration following documents are required:
- Individual’s or Firm’s or Company’s copy of PAN Card
- Individual’s voter id or Aadhar card or passport copy
- Individual’s or company’s or firm’s cancel cheque copy of current bank account
- Copy of Rent Agreement or Electricity Bill Copy of the premise
Food Licenses ( FSSAI )
FSSAI the food authority of India issues a 14-digit License number to all FBOs.This FSSAI License number has to be printed on food products along with the FSSAI Logo so that food is considered as safe for consumption.
The FSSAI has simplified 3 categories that are
- Basic FSSAI Registration,
- State FSSAI License Eligibility,
- Central FSSAI License Eligibility for the FBOs so that it becomes easy for them to put them in the required category and proceed with the registration of FSSAI Licence.
• Aadhar Card of the owner.
• PAN Card of the owner
• Passport Size photograph
• Water bill/ Electricity Bill/ Gas Bill
• IEC Code(for central license)
• CA declaration
MSME
MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy.
The distinction between the manufacturing and services enterprises has been removed by making the investment amount and annual turnover similar for enterprises engaged in both the sectors.
MSME – Merged Criteria: Investment and Annual Turnover
| Sector/Enterprise Type | Micro Enterprise | Small Enterprise | Medium Enterprise |
| Manufacturing & Services Sector, Both | Investment less than Rs. 1 crore Turnover less than Rs. 5 crore | Investment less than Rs. 10 crore Turnover up to Rs. 50 crore | Investment less than Rs. 50 crore Turnover up to Rs. 250 crore |
- Aadhaar card
- Rent agreement
- Property paper
- Cancelled Cheque
- Company Registration i.e., Sale or Purchase Bill and PAN card
NSIC Registration
NSIC is the abbreviation used for National Small Industries Corporation Limited is a government undertaking operating under Micro, Small, and Medium Enterprise (MSMEs). Formed by the Government of India in the year 1955 is known as Mini Ratna Public Sector Undertaking (PSU).
NSIC promotes & fosters the growth of MSMEs operating in India through various schemes such as Single Point Registration, Marketing Support, and credit rating scheme for SMEs, etc
The entities holding NSIC registration qualify for additional benefits such as:
- In addition to the free issue of tender, extra items of SSI sector along with MSMEs products, are reserved for exclusive purchase.
- Entities holding valid NSIC registration are exempted from the payment of Earnest Money Deposit.
- At least 25% of the annual purchase made by central ministries, PSUs or government department shall be delivered from MSMEs out of which 3% shall be procured from the units owned by women entrepreneur, and 4% shall be procured from the units owned by SC/ST.
The following documents are required for obtaining NSIC registration in India:
- Copy of Acknowledgement of MSME registration
- Details of of plant & machinery and raw material with original purchase price
- Performance Statement
- Self-attested copy of ownership documents of the premises or copy of lease deed.
- Declaration/Certificate from the Proprietor/Partner/Director whether or not they have any link with large scale unit(s).
- List of raw materials and finished goods in stock.
- Copy of BIS license, if applicable.
- Copy of ISO 9000 (Optional).
- List of technical personnel employed in production and services.
- Item for which registration required with detailed specification(s)
- Write-up on quality control measures adopted by the firm for ensuring quality of raw material, bought out item (s) for assembly and sub assembly and for products/stores in process and the finished products quality control
- List of quality control equipment and testing facility available in factory
- Copy of type test report from Independent lab, where applicable as mentioned in relevant standard.
- Latest Electricity Bill Copy.
- Audited Balance Sheet, Trading Account and Profit & Loss
- Account for the last 3 years duly signed by the authorized person under his seal.
- Statement showing the Results of Operation for the last 3 years duly signed by Chartered Accountant under his seal.
- Bankers’ Report giving details of financial status of the applicant firm as per Performa “F” of application form.
- Copy of Permanent Account No. (PAN)
- Partnership Deed
- Form ’A’ from Registrar of Firms showing the names of the partners.
- Certificate of Incorporation
- Memorandum and Articles of Association
Partnership Firm Registration
Partnership is a common form of business. Two or more people come together to carry on a business and share the profits and losses. Liability of the partners in a partnership firm is joint and several.
- Documentation
- Selection of Name
- Drafting of Partnership Deed
- Payment of Stamp Duty for the Partnership Deed
- Signing of Partnership & Notary of Deed
- PAN Number Allotment
- TAN Number Allotment
Basic documents to start a partnership
- Notarised Partnership Agreement
- Proof of Registered Address
- It should not be older than 2 months
- NOC from the Owner of Premises
Proprietorship Registration
Sole Proprietorship firms are the most common business types in India. Most of the entrepreneurs choose Proprietorship most of them when they are starting as a single person. It is one of the individual person firm registrations, and the main objective of the Sole Proprietorship is that you need to open a current bank account on the business name with less cost and compliance. A sole Proprietorship needs at least two legal entity proofs to open the existing bank account.