STARTING A COMPANY IN INDIA

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Contents• Initial Landscape research and identifying type of company• Private Limited Company formation procedure• Post incorporation compliance• Time lines for completion of registration work• Other registrations for a company• Challenges and exposures• Our support vendors

Initial Landscape Research•Location Selection•Visit Places for Office space•Research on employees availability

Identify the Company Level•Private Limited Company

A private company is a company which has the following characteristics:• shareholders’ right to transfer shares is restricted; • the number of shareholders is limited to fifty; and an invitation to the public to subscribe to any shares or debentures is prohibited. • A Private Limited Company is the most popular form of business entity used for

Foreign Investors in India, including USA investors in India. It takes some time to incorporate in India as there are various steps required in forming a private limited company in India. There are various steps required to establish a business in India, before and after incorporation, as mentioned hereinafter.

Company Formation Procedure**

Stage 1: We must obtain Indian Income-tax Permanent Account Number (PAN) and Digital Signature Certificate (DSC) for at least one of the promoter cum director as a preliminary requirement.

Stage 2: Obtaining Director’s Identification Number (DIN) for all the Promoters-Directors and get it approved.

Stage 3: Application to be filed for obtaining name approval with Ministry of Corporate Affairs in India.

Stage 4: Application for Incorporation along with Declaration, Situation of registered office and Particulars of Managing/ Whole time Directors and obtain Certificate of Incorporation.

**The entire procedure will take no longer than 20 days

Flow Chart

Flow Chart Cont …

Flow Chart Cont …

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Post Incorporation Compliances for a Private Limited Company

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Compliances for a Private Limited Company

One time registration Annual compliance Monthly/ Quarterly/ Half yearly

Service tax--in case of services Yearly statutory Audit

E-TDS filing quarterly(if applicable)

Vat-in case of goods ROC compliance /Filing PT filing

Pt registrationIncome tax filing for the company Service tax filing

Tax audit (if applicable) Vat -monthly filing(if applicable)

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Post incorporation administrative requirements

Accounting and preparation of financial statements

Budgeting, cost analysis and capital structure planning

Project Financing

Internal Audit and Process re-engineering

Vendor and customer due-diligence

Payroll processing

Other Registrations for a company• Apply for TAN• PAN – Company Permanent Account Number – Income Tax• Service Tax Registration• IEC – import and Export code• PF – Provident Fund• ESI- Employee State Insurance • VAT – Value Added Tax • PT – Professional Tax• Shops and Establishment License

Consultants/Vendors on Board• B C Shetty & Co, Chartered Accountants

- Company Registration- Tax Planning- PF Consultant - FEMA Consultant- Accounting & Book keeping

- Payroll - Transfer Pricing

Other Vendors on Board• Lawyers for drafting agreements• Insurance Consultant • Transportation Vendor• Equipment Supply Vendor • Desktops and Servers Vendor

Thanking You….

For further Information, Please Contact SATHYA HEGDEPartnerMobile: 9945179868E-mail: sathyahegde@bcshettyco.com