• How-to

Keen to start and grow your business in the Garden City? Here’s how to go about it.

1. Get a DIN: You can apply for a Director Identification Number (DIN) on the Ministry of Corporate Affairs 21st Century (MCA 21) portal (www.mca.gov.in). The provisional DIN will be issued immediately. Then, you will need to sign the printed application form and send it for approval.

2. Get a digital signature certificate: MCA 21’s new electronic filing system requires you to get a Class-II digital signature certificate (DSC); it is available from six private agencies authorized by MCA 21. The fee varies according to the certifying agency.

3. Reserve the company name: Your company’s name is filed electronically on the ROC website. You can check the availability of the name on the MCA 21 website. The name usually consists of two words.

4. Draft the Memorandum and Articles of Association: You should draft the memorandum on plain paper and present it to the Officer of Stamps for stamping. Send in (i) two blank / unsigned copies of the Memorandum of Association and the Articles of Association (ii) payment of receipt.

5. Get the Certificate of Incorporation: This can be procured from the ROC. You will need to electronically file the following forms on MCA 21’s website using your digital signature.

6. Get a PAN: Under the Income Tax Act, each person must quote their Permanent Account Number (PAN) for tax payment purposes. You’ll need
to apply for the allotment of a PAN from the Income Tax Department, Bengaluru, the Unit Trust of India, or the National Securities Depository Limited.

7. Get a TAN: The Tax Account Number (TAN) is a 10-digit alphanumeric number required of anyone responsible for deducting or collecting tax. You will need to apply for the allotment of the Tax Deduction Account Number from the Income Tax Department, Bengaluru. The application must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. Locations of the same can be found at www.incometaxindia.gov.in and www.tin-nsdl.com.

8. Register for VAT & Service Tax: This is applicable to you if your company sells any kind of goods / products/ services. Under the Karnataka Value-Added Tax Act, 2005, your application for VAT registration is to be made on Form 1, along with the declaration in Form 26 within 30 days of your company becoming liable to taxation. Present the application at the respective circle of the Commercial Tax Offices at Bengaluru.

9. Register for Profession Tax: Under the Profession Tax Act, every employer (who is not an officer of the government) is liable to taxation and shall obtain a certificate of registration from the prescribed authority. You will need to register your company as an employer on Form 1, under Section 5 of the Karnataka Tax on Professions, Trades, Callings and Employment Act (1976).

10. Register for Provident Fund: Every establishment with 20 or more employees engaged in any of the industries specified is required to register with the Employees’ Provident Fund Organization (EPFO). You must submit your application with the office of the Regional Provident Fund Commissioner.

11. Register for medical insurance: If your company has a minimum employee base of 10 and provides for medical benefits, you can register for medical insurance at the regional office of the Employees State Insurance Corporation (ESIC). You will need to submit Form 1 at the Regional Office, Panchdeep Bhawan, Binny Fields, Bengaluru.

12. Register with local authorities: You will need to send a statement in the prescribed form to the inspector of the area concerned within 30 days of establishing your establishment. It should contain:
a) Your name and the name of your manager, if any
b) Your establishment’s postal address
c) The name of your establishment, if any
d) Other particulars that may be prescribed

©Entrepreneur February 2010

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Bangalore, Bengaluru, business, set up, start