Legal Formalities to Start a Brand

The opportunities for individuals to start a new business are aplenty in the current times and economic climate, that more and more people are considering it every day! A business is more than just a great idea. Before opening your doors to your beloved customers, the steps required to start a business are doing extensive research, curating a business plan, finalising your finance sources and most importantly finishing up your legal formalities that are mandatory to ensure smooth sailing of your business.

Following is a list of the legal necessities you will need to start your small or medium business if it is incorporated as a Private Limited entity.

Director Identification Number (DIN)

Obtain and fill out the director identification number online. Once filled it must be printed out, signed and sent to the ministry for approval, together with an identity and address proof. The ministry issues a permanent DIN once it is approved.

Digital Signature Certificate

To sign electronic documents, you need a valid digital signature that should be approved by MCA 21. The directors of the company along with name and address proof need to submit the prescribed application form. Out of the three classes of certificates, Class III is the most secure and widely used.

Reserving the Company Name

The name of your business should be approved electronically. The availability of the desired company name can be checked on the MCA 21 website. You can choose and submit up to six names. The MCA approved and selected name will then be released on the website which can be used.

Stamping the Company Documents

The incorporated documents along with the Memorandum and Articles of association (MMA) should be stamped. This should be requested along with the payment receipt. Once stamped, signed and embossed, the superintendent returns the copies. The business promoters must then sign this.

Obtaining the Certificate of Incorporation

To obtain the certificate of incorporation, e- form 1, e- form 18 and e- form 32 must be filled electronically. Along with this, the signed and stamped MMA form, the initial approval of the directors, the original approval of name letter and the stamped power of attorney documents should be submitted to the ROC.

Obtaining a Permanent Account Number (PAN) and a Tax Account Number (TAN)

Form 49A and 49B must be filled for the Permanent Account Number (PAN) and the Tax Account Number (TAN) respectively. The PAN application can be filled electronically but the physical documents are required for verification. The Application for TAN can be done through the NSDL website.

Make a Seal

To issue certificates and other documents related to the company, a seal is to be made with the company name and any other required detail. Based on the number of seals and words to be engraved, the cost is calculated.

Register with the Office of Inspector, Shops and Establishment Act

Within 30 days of the opening of any establishment, it must be registered locally. A statement should be sent to the local inspector with the company’s name, manager’s name, employer’s name, postal address, and category along with the applicable fees.

Register for GST

Every establishment, which has an annual turnover of over Rs.20 lakh has to register for GST. You can register by following the procedure in the GST portal.

Register for Profession Tax at the Profession Tax Office (State)

Unless you are an officer of the government, every employee in your business is liable to taxation. A certificate of registration needs to be applied by the establishment and given to the registering authority using Form 1.

Register with Employees’ Provident Fund Organization (National)

For the allocation of the Established Code Number, the Directors of the business should send the required information to the regional Provident Fund Organization (EPFO) in the necessary manner. A separate registration is not essential for the employees.

Register for Medical Insurance

For every paid employee to be identified for insurance purposes, an individual record must be set up for each of them. According to the Employees’ State Insurance (General), Form 01 must be filled and submitted by the employers for the Employer Code Number to be issued.

At Servittil we have years of experience in taking care of all the legal requirements to start a business. We have the practical knowledge to deal with unforeseen circumstances in any of these steps. Get in touch with us to register your business and finish up the legal paperwork to get your business up and running in no time at all!