Steps to Start a Company

The World Bank’s Doing Business project report 2008 has ranked India at 120 among 178 economies,based on ease of doing business,and 111 on starting a business. The project estimates that an average of 33 days is required to set up a business in India and the process involves 13 basic steps. These apply to Kerala as well,though the licenses required will vary depending on the type of business or industry.

These include the following steps:

1 Obtain Director Identification Number From the Ministry of Company Affairs:Takes one day ;no charges

2  Obtain electronic/digital signature certificate from authorised cerifying agencies like Sify and TCS:Takes 4 days;Costs Rs 400 to Rs 2,650

3 Present name for approval to Registrar of Companies(ROC);get the Memorandum (MoA)and Articles of Association (AoA)vetted by ROC and printed: Takes 23days;Rs 50

4 Apply to the Superintendent of Stamps or an authorised bank for stamping of the Memorandum and Articles of association:1 day ;Rs 200 for MoA, Rs 1,000 for every Rs 5 lakh or part there of for AoA ,Rs 100 for stamp paper

5 Present the requried documents and registration fees to RoC. Documents needed include stamped copies of MoA and AoA, Copy of Form 32 along with consent letters of Directors of the Company, Form 1application and declaration for incorporating the Company, Form 18 address proof of the Company,Form 1Aevidencing name approval,copy of challan of fee, Power of Attorney from subscribers on judicial stamp paper of Rs 100 Identification of subscribers in the form of driving license , passport, ration card or voter’s identity card. These documents are to be uploaded online as well as filed in original with the RoC.

The fees are determined by the amount of authorised share capital of the company.
For registration of a company whose nominal share capital does not exceed Rs 1 lakh: Rs 4,000
For registration of a company whose nominal share capital exceeds Rs 1 lakh:Rs 4,000,plus the following:
Rs 300 for every Rs 10,000 of nominal share capital or part of Rs 10,000 after the first Rs 1 lakh up  to Rs 5 lakh

Rs 200 for every Rs 10,000 of nominal share capital or part of Rs 10,000 after  the first  Rs 5 lakh up to Rs 50 lakh

Rs 100 for every Rs 10,000 of nominal share capital or part of Rs 10,000 after the first Rs 50 lakh up to Rs 1 crore

Rs 50 for every Rs 10,000 of nominal share capital or part of Rs 10,000 after the first Rs 1 crore
The amount has to be paid by Demand Draft or Treasury Challan

6. Obtain a company seal: 3 day;Rs 350

7. Obtain Permanent Account Number from an authorised franchise or agent appointed by the National Securities Depository Services Ltd:7 day;Rs 66 fee and Rs 5 for form (if not downloaded).The application is to be made on From 49A along with a certified copy of the certificate of registration issued by ROC as well as proof of identity and address. The Income Tax Department has outsourced PNA allotment to UTI Investors Services Ltd.

8. Obtain TAN (Tax Account Number) form the Assessing Officer in the Concerned circle of the Income tax Department; 7 day (happens simultaneously with step 7); Rs 55.TAN is mandatory on TDS/TCS certificates.

9. Register with Kerala Shops and Establishments Act: 2 day (along with steps 7& 8); Apply in form B 1 to Assistant Labour OfficerGradeIII, along with the applicable fees.

The fee Structure is as follows:

For an establishment with no employees  Rs 10

For an establishment with less than 5 employeesRs 50

For an establishment with 5 to 10 employees Rs 100

For an establishment with less than 20 employeesRs 200

For an establishment with 20 to 30 employees Rs 300

For an establishment with 31 to 50 employeesRs 500

For an establishment with 51 to 100 employeesRs 1,000

10. Register for value added tax, if applicable,before the Sales Tax Officer of the ward in which the company is located:12 days (along with previous step); Rs 5,000 as registration fee and Rs 100 as stamp duty.
11. Register for profession tax: 2 days,along with step 10; no charge
12. Register with Employees Provident Fund Organisation :2 days ,along  with step 10; no charge.
This is optional if employee strength is less than 20.
13. Register with ESIC (medical insurance): 1 day ,along with step 10; no charge.

Courtesy:  http://www.keralait.org/it_enablers.php

http://madaan.com/incorporate.htm

12 thoughts on “Steps to Start a Company

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  2. I am an NRI from Bahrain, interested to start cement blocks- brick making unit at my hometown Kuzhur, Trichur dt , investment about 1 million.

    Advise me what type of support you can give to us

    francis

  3. if any body looking for startup capital pls. let me know..

  4. I would like to start a software development firm with new ideas. i have programmers ,and new ideas i need projects for a start up or as an introduction. how can u help me

  5. Iam undergoing 2nd year Btech in electronics and communication..i would like to start a software company which mainly deals with game developing…iam very much interested to do something related to artificial intelligence…..but i dont knw how to make it….a little bit confusion is going around …no idea what to do…Can u help me to solve it?

  6. Hello Sirs: We are an established IT services provided located in Aluva, Kerala. We provided value added product engineering support (software development) to various global clients especially in USA for the last 7 + years. We are mainly into adding values to the products of some famous Life Science and Biotech Industries, got our segment specific specialities of Software Development in Visual, Scientific computing, Image processing , Data Visualization anddomains. We also got expertise in Iphone/Ipad & Android application developments. Due to hard-hit recession experienced in US & European Union, not getting further projects to our expertise right now and planning to reduce our resources right now.

    We have read with great interest your group’s activities and your tie-up with CeBIT, Australia. Is there any way that we can also join your group to get more visibility and international exposure for promotion of our services ? Or is it like that only start-up companies are eligible to join you. ? Pls enlighten me. After getting your proper feed-back I could put up a proposal to our top management.

    R. Krishnan
    http://www.logicpond.com
    rkrishnan@logicpond.com

  7. Dear Sir,
    We are a group of E & C engineering graduates. we would like to start a new company in technopark,TVM and we wish to know the procedures and official formalities inorder to launch our company. Kindly enlighten us to do so.
    Regards
    Jith

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