8 Simple Steps To Register a Startup Company in India - Start Building Your Dream

Sachin Nayi

Apr 27th, 2017

Do you have a revolutionary start-up idea juggling in your mind? Then no other place is as good as India right now to shape up your thoughts.

Tim Cook's visit to India is just an instance to demonstrate the importance of India in the world market. Apple has made it's mind and has set up a manufacturing and assembling plant in India. Even tech tycoon like Apple, Google and Facebook are shifting their focus towards India to expand their business.

The Indian start-up eco system is now gaining pace in the world arena. It is now becoming the silicon valley of the world. So no other time is better than now to give shape to the start-up idea in your mind. 

Before going to launch a startup, keep these guidelines in mind:

  • Be creative: You need to be very creative with your product to be on top of the competition.
  • Unique Solution: You should build your business around a perfect that is not even existing or as better than the existing.
  • Targeting the Audience: You need to know who you are audience are and target them to grow your business.
  • Using social media: if you don't know how to harness the power of social media, then you will  be at the bottom of competition. It is because social media is what driving thousands of business.

Hope that all these stuff mentioned above has helped you to create a plan of action for your startup. 

Next step is to look for minimum requirements that are to be followed by every business in India. These are a must and foremost things to be done.


1. Current Account with a Bank:

Unlike savings account for an individual, a business needs a current account to process and handle regular transactions. Required proofs for opening a current account:

  • Proof of Identity: Passport/ PAN Card/ Driving License/ Voter ID card of the founder.
  • Proof of Address: Latest Electricity Bill or Telephone Bill.

2. A Permanent Account Number (PAN card):

PAN card is an important identity for a business and is issued by the Income tax department of India. One should have a PAN card to run a business. You can apply for a PAN as an individual or as in the name of your business.

If you are not aware of how to get a PAN card you can find detailed resources about PAN here. Required documents for getting a PAN card:

  • Proof of Identity: Passport/ Driving License/ Voter ID card/ Bank details of the founder
  • Proof of Address: Latest Electricity Bill or Telephone Bill.

3. Registration of Your Company (Private Limited Company/ Pvt. Ltd.):

Registration is one of the most important things to be done. As it will be necessary to protect your brand. A brand is what defines your product.

To register a startup, you need to head to start up India portal and follow the instructions to make things simple and easy.

Click here to learn more about How to register Pvt. Ltd. Company

4. Register a Limited Liability Partnership (LLP):

The LLP is an alternative corporate business model that provides limited liability to its members but allows them the flexibility of organizing their internal structure as a partnership based on a mutually arrived agreement.

If you are not aware of how to register as LLP here is how to do it. Here are the list of basic requirements:

  • Choosing a name - It is something that is unique and represents your business. Make sure it doesn't infringe on others.
  • Registered address - A registered address for your business.
  • Finding a Co-Partner - To register as LLP, you must have at least two members.
  • Agreement - An LLP agreement that says how the LLP will run.
  • Register the LLP with Companies House.

Proof of Identity for registering as LLP:

  • Colour PP Photograph
  • PAN Card self attested
  • Address Proof – Any One Self Attested (Driving License / Passport / Aadhar Card / Voter ID Card / Latest Electricity Bill / Latest Telephone Bill / Latest Mobile bill)

5. Register for Value Added TAX (VAT)/ Sales Tax:

VAT is a multi-point destination-based system of taxation. The tax will be levied on value addition at each stage of the transaction in the distribution/ production stage. The State Governments collects this tax in their respective states.


6. Register for Service Tax:

Service tax is levied based on the services offered by the start-up. It is a tax levied on the transaction of certain services specified under the Finance Act of 1994 by the Central Government.


7. Employee’s Provident Fund (PF):

PF is applicable for startups having twenty or more persons and engaged in an industry notified under section 6 of the Act. 

Your team is below that then you can take care of this step when you scale up your team.


8. Apply for TAN:

All those who are required to collect or deduct tax at source on behalf of the Income Tax Department are required to have a TAN.

Click here to learn more about How to apply for TAN.

Conclusion:

Well, this 8 point checklist is just enough to finish up the fundamental process of establishing a startup. It is better to keep a deadline of 45 days to wrap all these things. And for your information, you don't need a financial advisor to do all these things.

Just follow the above steps and read the documentation before you proceed. So wake up now start building your dream. Who knows you could be the next Zuckerberg or your idea could be the next big thing.