• How-to

You wouldn’t have guessed it, but starting a business in Patna takes only 11 days as against 30 days in Mumbai—a supposedly more business-friendly city. Here’s what you would have to do to get started in Patna.

Get a DIN number
A director identification number, or DIN, can be applied for online at the Ministry of Corporate Affairs (MCA) portal: www.mca.gov.in.

Time: 1 day
Cost: Rs. 100

Get a digital signature
You can get a Class II digital signature certificate online from any of the six private agencies authorized by the MCA. Note that the fee varies across agencies.

Time: 3 days
Cost: Rs. 1,500

Get your company name
You can reserve the company name online with the Registrar of Companies (ROC) electronically.

Time: 2 days
Cost: Rs. 500

Get the company documents stamped
You would need to get your company’s incorporation documents stamped at the State Treasury or an authorized private bank. The request must be accompanied with unsigned copies of the Memorandum of Association (MOA), Articles of Association (AOA), and the payment receipt.

Time: 1 day
Cost: Rs. 180

Get the Certificate of Incorporation
This can be procured from the ROC. The following forms are required to be electronically filed on the MCA website: e-form 1; e-form 18; and e-form 32.

One copy of the MOA, AOA, Form 1, Form 32, Form 18, and the original name approval letter, consent of directors, and stamped power of attorney must be physically submitted to the Registrar of Companies.

Time: 5 days
Cost: Rs. 13,250

Get a seal made
You would need a seal to issue share certificates and other documents, even though it’s not really an incorporation requirement. Costs will vary with the number of words to be engraved, the number of seals required, and the delivery period.

Time: 1 day
Cost: Rs. 350

Get your PAN
You can get a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit Trust of India Investors Services Ltd (UTIISL). For more details, see www.incometaxindia.gov.in, www.utiisl.co.in, and www.tin.nsdl.co.in.

Time: 15 days
Cost: Rs. 67 (INR 60 application fee + 12.36% service tax + Rs. 5 for application form, if not downloaded)

Get your TAN
The application for the allotment of a TAN must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. A list of Facilitation Centers can be found at www.incometaxindia.gov.in and www.tin.nsdl.com.

Time: 7 days
Cost: Rs. 57 (Rs. 50 application fee + 12.36% service tax)

Register for VAT
You will have to register for Value Added Tax (VAT) at the local Sales Tax office to be able to pay taxes.

Time: 1 day
Cost: Rs. 100

Register for PF
Under the current laws, any business employing 20 or more people and engaged in any of the 183 industries and classes of business establishments throughout India is required to register with the Employees’ Provident Fund Organization (EPFO).

You are required to provide necessary information to the regional EPFO in the prescribed manner for allotment of the Establishment Code Number.

Time: 20 days
Cost: Free

Register for medical insurance
You can register for medical insurance at the regional office of the Employees’ State Insurance (ESI) Corporation. You can then apply for individual insurance for your employees.

Time: 14 days
Cost: Free

Note: Steps 8 to 11 can be completed simultaneously. The above steps are for a private limited company.

Tags:
business, Patna, set up