Starting a Business in Bhubaneshwar, India

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Registration Requirements Summary:

Registration Requirements Details

Procedure 1.

Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (National)

Time to complete:

1 day

Cost to complete:

INR 100

Name of Agency:

Comment:

The applicant is required to fill out and submit Form DIN-1 to obtain the provisional DIN. This form is available online on the Ministry of Corporate Affairs 21st Century (MCA 21) portal (www.mca.gov.in). The provisional DIN is immediately issued. The applicant is also required to pay an application fee of INR 100, which can be done online. The printed application form must then be signed and sent for approval to the Ministry of Corporate Affairs by courier, along with proof of payment (Service Request Number [SRN] of the fee paid online), proof of identity, and proof of residence within 60 days of the date of generation of the provisional DIN. On receipt of the DIN application form and attached supporting documents, the concerned authority verifies all the documents and, upon approval, issues a permanent DIN. The status of the DIN approval process can be checked online on the MCA portal. The provisional DIN itself is approved as the permanent DIN.

Procedure 2.

Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (National)

Time to complete:

3 days

Cost to complete:

INR 1,500

Name of Agency:

Comment:

To use the new electronic filing system under MCA 21, the applicant must obtain a Class-II Digital Signature Certificate (DSC). The DSC can be obtained from six private agencies authorized by the Ministry of Corporate Affairs (MCA 21). Each certifying agency has its own fee structure, ranging from INR 400 to INR 2,600, depending upon various factors such as validity period, delivery time, and cost structure. Company directors submit the prescribed application form along with proof of identity and address. After the DSC is obtained, it must be registered on the MCA portal before it can be affixed on any e-form. Once the Director has obtained the provisional DIN online, DSC may be obtained while the provisional DIN is being registered.

Procedure 3.

Reserve the company name online with the Registrar of Companies (ROC) (National)

Time to complete:

2 days

Cost to complete:

INR 500

Name of Agency:

Comment:

Company name approval must be done electronically. Under e-filing for name approval, the applicant can check the availability of the desired company name on the MCA 21 website. A maximum of 6 suggested names can be submitted; they are then checked by ROC staff for any similarities with all other names in India. After being cleared by the junior officer, the name requests are sent to the senior officer for approval. Once approved, the Registrar of Companies electronically informs the applicant. In practice, it takes 2 days to obtain a clearance of the name if the proposed name is available and conforms to the naming standards established by the Company Act (1 day for submission of the name and 1 day for it to appear on the MCA website). As a result of reforms introduced by the MCA, payment of the ROC fee can be made online.

Procedure 4.

Stamp the company documents at the State Treasury (State)

Time to complete:

1 day

Cost to complete:

INR 650 (INR 300 for MOA + INR 300 for AOA + INR 50 for stamp paper for declaration in Form 1)

Name of Agency:

Comment:

The request for stamping the incorporation documents should be accompanied by unsigned copies of the memorandum (MOA), articles of association (AOA) and the payment receipt. The Superintendent at the State Treasury returns the copies, one of which is duly stamped, signed, and embossed, showing payment of the requisite stamp duty. Once the memorandum and articles of association have been stamped, they must be signed and dated by the company promoters, including the company name and the description of its activities and purpose, father-"s name, address, occupation, and the number of shares subscribed. This information must be in the applicant-"s handwriting and duly witnessed. The time involved in engrossing the documents may vary from 1 to 4 days, depending upon the mode of payment of the stamp duty charges: if the stamp duty is paid in cash (most common form of payment for small amounts such as these duty charges), engrossing can be done in 1-2 days; if stamp duty is paid through demand draft, then engrossing may take 3-4 days.

Procedure 5.

Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (National)

Time to complete:

6 days

Cost to complete:

INR 13,300 (filing fee on MOA: INR 12,400 + filing fee on AOA: INR 200 + filing fee on Form 1: INR 200 + filing fee on Form 18: INR 200 + filing fee on Form 32: INR 200 + POA from 5 subscribers: INR 100)

Name of Agency:

Comment:

The following forms are required to be electronically filed on the website of the Ministry of Corporate Affairs using digital signatures: (a) e-form 1; (b) e-form 18; and (c) e-form 32. Along with these forms, signed and scanned copies of the Memorandum and Articles of Association (MOA and AOA) and duly executed Power of Attorney (POA) must be attached to Form 1. The fees for registering a company can be paid online by credit card or in cash at certain authorized banks. Paying online reduces the time by 2–3 days compared with paying by bank draft. One copy of the Memorandum of Association, Articles of Association, 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 (ROC). ROC scrutinizes all documents and forms and issues the Certificate of Incorporation, which is available online on the Ministry of Corporate Affairs website (as an e-certificate) after 2–3 days. The physical copy of the certificate is sent to the company office by registered or rush mail. The process takes from 3 to 7 working days.

Procedure 6.

Make a seal (Private)

Time to complete:

1 day

Cost to complete:

INR 350 (costs starts at INR 350 for a seal, depending on number of words to be engraved)

Name of Agency:

Comment:

Although making a company seal is not a legal requirement for the company to be incorporated, companies require a seal to issue share certificates and other documents. The cost depends on the number of words to be engraved, the number of seals required and the time period for delivery. The cost can range from INR 300 to INR 500.

Procedure 7.

Obtain 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 (UTI) Investors Services Ltd, as outsourced by the Income Tax Department (National)

Time to complete:

15 days

Cost to complete:

INR 67 (INR 60 application fee + 12.36% service tax + INR 5 for application form, if not downloaded)

Name of Agency:

Comment:

Under the Income Tax Act (1961), each person must quote the Permanent Account Number (PAN) for tax payment purposes. The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing officer of the Income Tax Department. In order to improve PAN-related services, the Income Tax Department (effective July 2003) outsourced allotment of PAN to UTI Investor Services Ltd., which was authorized to set up and manage IT PAN Service Centers. The National Securities Depository Limited (NSDL) has also launched PAN operations effective June 2004, setting up TIN Facilitation Centers. The PAN application is made through the abovementioned service centers using Form 49A, with a certified copy of the Certificate of Registration, issued by the Registrar of Companies, along with proof of company address and personal identity. A fee of INR 60 (plus applicable taxes) applies for processing the PAN application. IT PAN Service Centers or TIN Facilitation Centers will supply the PAN application form (Form 49A), assist the applicant in filling out the form, collect the filled-out form, and issue an acknowledgment slip. After obtaining the PAN from the Income Tax Department, UTI or NSDL, as the case may be, will print the PAN card and deliver it to the applicant. The application for PAN can also be made online or using the rush process called TATKAL: (1) TATKAL is used only in emergency cases. Under TATKAL, the PAN is allotted on a priority basis, at an extra cost, in approximately 4 days; (2) ONLINE: although the online application would speed up the process to obtain the PAN, applicants are not using the online system mostly because the documents must still be physically dropped off for verification with the authorized agent. For more details, see www.incometaxindia.gov.in, www.utiisl.co.in, and www.tin.nsdl.co.in.

Procedure 8.

Obtain a Tax Account Number (TAN) for income taxes deducted at source from authorized franchise or agent appointed by the National Securities Depository Ltd (NSDL), as outsourced by the Income Tax Department (National)

Time to complete:

14 days

Cost to complete:

INR 57 (INR 50 application fee + 12.36% service tax)

Name of Agency:

Comment:

The Tax Account Number (TAN) is a 10-digit alphanumeric number required of anyone responsible for deducting or collecting tax. The provisions of Section 203A of the Income Tax Act require that all persons who deduct or collect tax at the source must apply for a TAN. The application for allotment of a TAN must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. Form 49B is freely downloadable from the NSDL-TIN website. It is also available at TIN-Facilitation Centers. Locations of TIN Facilitation Centers can be found at www.incometaxindia.gov.in and www.tin-nsdl.com. After verification of the application, the same is sent to the Income Tax Department for validation. The department will issue the TAN and communicate it to NSDL online. On the basis of this, NSDL will issue the TAN letter to the applicant. Since outsourcing in 2003, any authorized franchise or agent appointed by the National Securities Depository Services Limited (NSDL) can accept and process the TAN application. The national government levies the income tax. The application for a TAN can also be made online. An application (Form 49B) can be submitted through TAN online at the NSDL-TIN website. Once the application is submitted online, a unique 14-digit acknowledgment number is generated. This acknowledgment number should be printed and sent to NSDL at the address mentioned on the NSDL-TIN website along with the processing fee. Payment can be made by check or credit card. Tracking the status of the e-registration at is available at https://tin.tin.nsdl.com/tan/StatusTrack.html. Applying online shortens the time to obtain the TAN by 2–3 days. However, the majority of applicants are not using the online system mainly because the online application has to be followed with an offline submission: the hard copy of the application is required to be physically filed with NSDL. A TATKAL facility has also been introduced to make this registration faster. TATKAL is being used only in emergency cases. Under TATKAL, the TAN is allotted on a priority basis, at an extra cost, in approximately 5 days.

Procedure 9.

Register with Office of Inspector, Shops and Establishment Act (State/ Municipal)

Time to complete:

5 days

Cost to complete:

INR 65

Name of Agency:

Comment:

The procedure for obtaining the Registration Certificate under the Orissa Shops and Commercial Establishments Act,-(1958) is as follows: the employer of every establishment shall, within thirty days of the date of commencement of its work, submit to the inspector of the area concerned, a statement in the prescribed form along with the applicable fee (depending on the number of employees working in the establishment) for registration of the establishment. The statement shall consist of the following information: a. The name of the employer and the manager, if any; b. The postal address of the establishment; c. The name, if any, of the establishment; d. The category of the establishment.

Procedure 10.

Register for Value Added Tax (VAT) and Profession Tax at the Commercial Tax Office (State)

Time to complete:

20 days

Cost to complete:

INR 100 (no registration fee is prescribed for VAT. Stamp duty of INR 100 is required to be affixed to the application for registration. No registration fee is prescribed for Profession Tax.)

Name of Agency:

Comment:

The registration for both VAT and Profession Tax is done at the same window, by the same officer at the Commercial Tax office. Application for VAT registration automatically triggers registration for Professional Tax. 1. VAT registration VAT registration is affective from date of issuance of the Certificate of Registration. The company shall apply on Form 101. In addition to Form 101, other accompanying documentation includes: a. Form VAT-101-D with details about the director(s); b. Certified true copy of the Memorandum and Articles of Association of the company; c. Proof of address of the registered office premises; d. Antecedents of directors; e. Copy of the Permanent Account Number card; f. Current bank account number; g. Original (challan) of payment of registration fees; h. Two passport-sized photographs of the authorized signatory; i. Board resolution authorizing the signatory to sign the application form and appear before the Commercial Tax Officer to (complete) the formalities related to registration. No time limit is prescribed. Registration is granted after verification of the documents and enquiry about the business. 2. Profession Tax registration The company is required to register as an "employer" under Section 6 of the Orissa State Tax on Professions, Trades, Callings, and Employment Act,-(2000), within 90 days of the company becoming liable to taxation. Application is to be made on Form I, prescribed under the said Act. The assessing authority shall grant certificate of registration within 30 days of the application receipt .

Procedure 11.

Register with Employees' Provident Fund Organization (National)

Time to complete:

12 days

Cost to complete:

No cost

Name of Agency:

Comment:

The Employees Provident Fund Organization (EPFO) is a statutory organization under the Ministry of Labor and Employment. The Provident Fund registration focuses on delinquent reporting, underreporting, or nonreporting of workforce size. If a company has more than 20 employees, then it is mandatory to register with the EPFO and a code number will be allotted to the company. Once the employer is registered with the EPFO, it will register his employees with the office and open Provident Fund accounts in the name of each employee. More information is available at www.epfindia.gov.in. As per an internal circular, the code number is to be allotted within 3 days of the date of submission, if the application is complete in all respects. However, in many cases applicants have received the intimation letter with the code number later: in 12 to 15 days

Procedure 12.

Register for medical insurance at the regional office of the Employees State Insurance Corporation (National)

Time to complete:

15 days

Cost to complete:

No cost

Name of Agency:

Comment:

Registration is the process by which every employer and every paid employee is identified for health-insurance purposes. The Employees’ State Insurance (ESI) Act (1948) provides for a fund administered by the ESI corporation in which contributions is made both by the employer and the employee at the rates prescribed by the National Government. The Employer should register within 15 days after the Act becomes applicable. For this purpose, the employer should submit Form 01 to the ESI regional office. Upon receipt of the registration form, the office shall allot an employer’s code number and shall inform the employer of that number through an “intimation letter” sent by post. An employee’s individual insurance involves a separate process, one which is initiated after employer’s registration. The employer should fill out declaration forms for all coverable employees and submit the same, along with Form 3, to the appropriate regional office within 10 days of the employee’s appointment date. The employees’ temporary cards (ESI Cards) are issued on the spot. It takes about 4 to 5 weeks to get a permanent ESI card. More information is available at http://www.esic.nic.in.