Legal Question in Business Law in India

Re: Small Business Start-Up Documentation

I am sorry as this is not my area of practice but yes ritika singh as given you the perfect guidelines.

Re: Small Business Start-Up Documentation

Sorry i am not practising in legal fields relating to above

Re: Small Business Start-Up Documentation

Dear Shruti,

The start of business in India is governed by:

(a) Compliance of the Indian Companies Act, 1956.

(i) The first step is to search for availability of name, which should not be matching with any other existing Company.

(ii) In case the proposed directors are outside India, then their Power of Attorney, No Objection Letter, Board Resolution, Memorandum and Articles of Association of the parent Company duly translated in English are required to be attested by a Notary and Counter attested by Indian Embassy.

(iii) The Provisional Director Identification Numbers and Digital Signatures of the proposed directors are created.

(iv) Thereafter application for availability of name of Company is made.

(v) Next step is Drafting of Charter Documents namely Memorandum and Articles of Association.

(vi) These documents are stamped and necessary Court Fees is paid.

(vii) The necessary Forms, documents and challan for Company Incorporation fees is filed before Ministry of Company Affairs.

(viii) Obtaining the Incorporation/Registration of the new company.

Post Incorporation Work:

The moment Certificate of Incorporation is issued, the Company becomes legal entity, and thereafter formalities and compliances are carried out for example:

(a) Drafting minutes of the first board meeting of the company, drafting General Power of Attorney, letters to the auditors, preparing Share certificate and design of Common Seal.

b) Drafting minutes of the board meeting approving allotment of shares.

(c) Drafting documents required to be lodged with the bankers of

for transfer of equity shares of the Indian subsidiary

(d) Coordinating with bankers for certifying receipt of share purchase consideration and completing corporate formalities for Shares.

Subsequent Registrations:

Immediately after Incorporation of Company, and passing of Board Resolution, the following registrations are required:

1. Permanent Account Number.

2. Tax Deduction Account Number.

3. Import Export Code No.

4. Registration under Sales Tax/VAT. (IT Companies are exempted from Tax, the registration is compulsory and required to claim tax benefits)

5. Registration under Shops & Establishment under Local State

Laws.

6. Registration under Labour Laws, if the number of employee exceeds 20.

7. NOC from the Fire department.

8. Trade Mark Applications before the Registrar.

You can start up your business, even without incorporating a new company and solely based upon your own proprietorship concern. The necessary formalities required are:Obtaining Permanent Account Number, Obtaining Tax Deduction account number, obtaining Import Export Number, Vat registration number if you want to indulge in local sales purchase.

Hope this satisfy your concern, in case of any further query, please feel free to revert at [email protected], or call at 9910472298