How To Start A Start-up In India? Here Is All You Need To Know!

With the Smart India and Startup India gaining wind, it is no surprise that startups are the new phenomenon which is here to stay. The youth is becoming more and more inclined towards being an entrepreneur and it is in the best interest of everyone including the government and the society. The startups are the hub of new and innovative ideas that also creates employment opportunities for the local market.  Where business was a term restricted to the pool of experienced candidates, the scenario has completely changed today. So if you are someone looking for establishing a startup or just keen to know what goes into making one, here is everything you need to know.

What is a Start-Up?

We all keep hearing the term Startup but how does one explain what is a startup? In a layman’s language, a Startup means starting a business or entrepreneurial venture. It can also be described as a newly started business venture as per the needs of the market. This explains that startups are usually the small companies looking to develop with funding from a handful of investors operating with smaller teams and generally in smaller regions. The startups tend to grow at a rapid pace in their initial few weeks and that is what sets them apart from the normal businesses. They are also often focused around an innovative idea or invention within the existing idea.

Step by step procedure

Though India does not rank in the very best when it comes to ease of doing business, the scenario might change with the introduction of INC 29 – Integrated Incorporation Form. A five in one form which aims at reducing the interaction with authorities to minimal when it comes to registering a new business or company. There are a total of 13 steps that one needs to follow while registering a business. The same is listed down and briefly explained below.

1. A Directors Identification Number also known as DIN needs to be obtained from the Ministry of Corporate Affairs Portal.
2. A Digital Signature Certificate needs to be obtained from a private agency authorized by the Ministry Of Corporate Affairs.
3. The chosen company name needs to be locked with national Registrar of Companies, also known as ROC.
4. The company documents need to be stamped either at a private bank or a state treasury.
5. One then needs to obtain the Certificate of Incorporation from the Registrar of Companies.
6. Making a company stamp or seal.
7. Obtaining a PAN number or a permanent account number from National Securities Depository Limited by either applying on their website online or from any authorized agent.
8. The TAN number which is Tax Account Number needs to be obtained from the Assessing Office of the Tax department.
9. The Shop Act License needs to be obtained from the office of Inspector/shops and establishment Act of the local state or Municipality.
10. Registration and obtaining of the GST which is Goods and Service Tax number depending upon the estimated turnover of the business.
11. Registration and obtaining of the professional tax number.
12. If the organization has employees which are to be covered under PF as per PF laws, then the Provident Fund number also needs to be obtained.
13. Registration for the Medical Insurance also known as ESIC at the regional Employees State Insurance Corporation.

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