how to start business in india
BUSINESS
Setting up business also requires decoding the complexities of starting a business in a developing country such as India. This includes various stages from incorporation to preparing to operate, unit registration, taxation policies, and more. The following are the stages of setting up business
COMPANY INCORPORATION
| Incorporate a Company | ||
| Process/ Certification | Authority/ Certifying body | Website |
| Register on Ministry of Corporate Affairs website | Ministry of Corporate Affairs (MCA) | MCA Website |
| Director Identification Number (DIN) | MCA | MCA Website for DIN |
| Digital Signature Certificate (DSC) | MCA | MCA Website for DSC |
| Check availability and Register company name | ||
Register Trademark if applicable
MCA/ Registrar of Companies
Trade Marks Registry
Check Availability
Register Company Name
Register Trademark
Stamp company documents
Superintendent of Stamps, Mumbai/ E-payment through MCA
Visit Link
Certificate of Incorporation
MCA
Certificate of Incorporation
PREPARING TO OPERATE
| Prepare to Operate | ||
| Process/ Certification | Authority/ Certifying body | Website |
| Permanent Account Number (PAN) | Income Tax Department | Apply for PAN |
| Registration under Bombay Shop and Establishment Act | Labour Department (manual submission at District Municipal Office) | Registration Link |
| Medical Insurance | Employees State Insurance Corporation | ESIC Website |
| Provident Fund | Employees Provident Fund Organisation | Provident Fund Website |
UNIT REGISTRATION
| Size | Investment in Plant & Machinery (Rs Mn) |
|
| Manufacturing | Service | |
| Micro | < 2.5 | < 1 |
| Small | 2.5 to 50 | 1 to 20 |
| Medium | 50 to 100 | 2 to 100 |
| Large | > 100 | > 100 |
| Unit Registration (All units) | ||
| Size of Unit | Authority/ Certifying body | Procedure |
| Micro, Small and Medium Industries | General Manager District Industries Centre (DIC) Agricultural College Compound, Shivaji Nagar, Pune – 411005 |
Register using MSME Form Part1 |
| Large Units | De-licensed products | |
| Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion (DIPP) | Register using Industrial Entrepreneur’s Memorandum (IEM) form | |
| Licensed products | ||
| Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion (DIPP) | Apply for License | |
| Final clearance for all large-scale units | ||
| District Industries Centre (DIC) | No Objection Certificate (NOC) for Locational Clearance | |
| Additional Registrations (for select industries) | ||
| Industry | Authority/ Certifying Body | Procedure |
| Export Oriented Unit (EOU) | District Industries Centre (DIC) | Letter of Permission |
| Bio-Technology units | District Industries Centre (DIC) | Letter of Intent |
| IT unit | Less than Rs 100 million | |
| District Industries Centre (DIC) | Registration | |
| More than or equal to Rs 100 million | ||
| State Industrial & Investment Corporation of Maharashtra Limited (SICOM) | Registration | |
TAX REGISTRATION
| Tax Registrations | ||
| Name | Authority/ Certifying body | Registration/ Form download |
| Tax Account Number (TAN) Tax Deduction and Collection Account Number is issued to persons/entities who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act |
Income Tax Department | Download Form |
| Professional Tax It is the tax charged by state governments from any person earning an income from salary or any one practicing a profession |
Department of Sales Tax | Download Form |
| Value Added Tax (VAT) It is a multi-stage state government tax with the provision to allow Input Tax Credit (ITC). VAT paid on inputs such as raw material can be set off against the VAT liability on subsequent sale. |
Department of Sales Tax | Register |
| Sales Tax It is a tax on inter-state trade, import or export. It is payable in the state where the goods are sold and is not applicable on consignment or transfers to branch offices. |
Department of Sales Tax | Electronic Registration |
| Central Excise It is a central tax levied on excisable goods manufactured in India. |
Central Board of Excise and Customs | Central Excise Circular Central Excise Form |
| Service Tax It is a central tax levied on services provided or to be provided. The provider of taxable output goods and services can avail Cenvat credit on input services. |
Central Board of Excise and Customs | Service Tax Website Service Tax Registration |
| Local Body Tax (LBT) It is a state government cess levied on the entry of goods for use and consumption within the jurisdictions of local municipal corporations. |
Pune Municipal Corporation | Local Body Tax Website |
ENVIRONMENTAL CLEARANCE
SETTING UP A UNIT
Once the land acquisition process is completed, the setting up operations begin. If the plot is part of a MIDC industrial estate the starred* process/certifications in the table below are approved by the respective Executive Engineer, MIDC. For further details on the MIDC single window clearance system visit the website.
| Set up the Unit | ||
| Process/ Certification | Authority/ Certifying body | Website/ Form |
| Consent to Establish | Maharashtra Pollution Control Board (MPCB) | Download Form |
| Provisional Fire Safety* | Directorate of Maharashtra Fire Services | Approval Procedure |
| Building Plan Approval* | Pune District Collectorate | Procedure |
| Final Fire Safety Approval* | Directorate of Maharashtra Fire Services | Electronic Approval |
| Consent to Operate | Maharashtra Pollution Control Board (MPCB) | Consent Form |
| Building Permission (including drainage plan, connection and completion) * | Depending on plot location: Pune Municipal Corporation (PMC) / Pimpri Chinchwad Municipal Corporation (PCMC) |
Building Permission Modalities More Information |
| Building Completion Certificate / Occupancy Certificate* | Pune District Collectorate | More Information |
| Factory License | Director of Industrial Safety and Hazards (DISH) | More Information |
| Plan Approval by inspector of Factory | Director of Industrial Safety and Hazards (DISH) | Plan Approval |
| Water Supply Connection* | Depending on plot location: Pune Municipal Corporation (PMC) / Pimpri Chinchwad Municipal Corporation (PCMC) |
PMC Website PCMC Website |
| No Objection Certificate for Power Connection* | Pune District Collectorate, | More Information |
| Power Connection (For substation or high tension connection prior approval from Public Works Department is required) |
Maharashtra State Electricity Distribution Company Limited (MSEDCL) | Connection Form |
| Boiler (inspection and permission to operate) | Directorate of Steam Boilers, Kamgar Bhavan, 7th floor, Plot # C-20, Block-E, Bandra-Kurla complex, Bandra, Mumbai 400051 | |
| Registration for employing Contract Labour | Labour Department | Contract Labour Application Permission Form |
| License from Bureau of Indian Standards (BIS) (different for Indian manufacturer, foreign manufacturer, Indian importer) |
State office of Bureau of Indian Standards (BIS) | License Form |
| Register with Legal Metrology Department (use of weights and measures) | Legal Metrology Departmenrt | Registration |
| Importer Exporter Code (IEC) | Directorate General of Foreign Trade | Impex Code Form |
QUICK FACTS
VAT input credit is available for goods produced and sold within the state
MIDC offers plots for 95-year lease with guaranteed infrastructure
MIDC offers single window clearance for state permissions required to set up a business
Pune is the 2nd best city in the Indian real estate market
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