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How to register your business
Once you put your start-up idea into motion and start building your business, the next up process is to register your business. For some, registering a business may seem a tiresome job, but it is an important process to be completed. The Registration process is simple and mandatory for all businesses, except for small business, they may/may not register. Let’s have a look at step-by-step process.
Decide your business structure
The first order of the process is to understand the structure of your business. Here, business structure means the type of business, is it sole proprietor, is it in partnership, an LLC? Or a C-corp? Depending on your business structure, a different type of formalities and laws are applicable to the same.
Deciding your Company’s name
Here comes the most important step, deciding your company’s name. Your business name is going to be very important for your business altogether, as it is that particular name by which consumers would know about your brand or about your business. However, one thing to note is that your business name should be unique and not a name that is being used by some other business or corporation. You can register your business name easily once you check for its availability.
Director Identification Number (DIN)
Director Identification Number (DIN) is a mandatory and a unique, special identification number that is being provided to the director of the company incorporated. In most cases, the sponsor is the director. Once you submit a printed and signed form to the concerned authority, they assign you a permanent DIN, after checking the address and identity proof of the director.
Digital Signature Certificate
How do you sign a physical copy or a physical document? Yes, we do it manually, in the same manner, e-documents are signed with the help of a digital signature. In order to have a digital signature, your business needs to obtain a digital signature certificate from the authorities. To obtain such a certificate, you need to get the required documents certified with the Certifying Authorities (CAs). This certificate will validate any signed e-document for your business.
This certificate is issued by the ministry of corporate affairs, and it reflects as proof or as the constitution of your business. To acquire this certificate, you need to comply with the requirements and fill the forms, along with some crucial details such as the Memorandum Of Association (MOA) and Articles of Association (AOA), the assent of all the directors, and a lawyer’s services for the same.
Company seal and documents
An official company seal! To acquire a company seal is important and mandatory, as it would be used for various important processes, such as transactions on behalf of the company. To acquire a company seal, the charges are based on the number of letters engraved in the seal. However, this is not mandatory for private companies. All documents which are necessary are to be stamped for the further registration process.
A Permanent Account Number (PAN) & TAN
This step is mandatory for types of businesses. To acquire a PAN for your business, you can apply for it on an online basis, however, you have to submit the necessary documents in a physical mode for verification purposes. Once you are assigned the PAN card, it will be delivered to the address mentioned. Another important process is getting the Tax Account Number (TAN), it is in accordance with the income tax department for tax purposes and is compulsory for all types of entities.
This process is the most important step and it is also compulsory for every entity out there. GST registration is mandatory for all businesses, except when dealing in GST-exempt goods, any entity with an annual turnover of 20 to 40 lakhs, requires the same.
National Employees’ Provident Fund Registration
This step is only applicable to businesses if they come under the provisions of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It is a compulsion for every employer to provide information about his workers to the local employee provident Fund Organization (EPFO). Once this stage is completed, the registration of your business is successful in all manners and fields.
As said earlier, the process could be time-consuming, but if all the above steps are followed carefully with the necessary obligations and documents, the registration of your business can be done quite easily. For any reference, you can visit the website of the ministry of corporate affairs.