If you are planning to start your own business or a company, it’s advisable to have it registered. It helps to protect your interest and your idea. If you have registered, you can also avail various tax reliefs and benefits offered from Government.
Since couple of years, the Government has made legal body formation a lot easier. It is advisable to register your company in earlier stages. There are certain benefits of having your business registered as a legal entity. Like –
1- Registration provides authenticity to your services/products and secures your business.
2- Registration makes you relaxed on legal front and let you focus on business expansion and improvement.
3- You can claim different incentives and interim tax deduction announced by the Government.
4- Once you register your business, you can freely brand it across the country.
5- Besides this, you can have your own business trademark.
6- The Government only purchases services/goods from a registered business only.
The Government have also revised rules and regulation of registration and made them more user friendly. Ministry of Commerce, India has also declared this in the company formation policy in 2016. The intention is clear – motivate more and more entrepreneurs to register their companies.
First, it’s important to know startup definition as per the Government Rules which are eligible for the Startup India Program.
Startup India “Startup Definition”
Any Legal entity will be identified as a startup.
1- Till up to five years from the date of incorporation.
2- If its turnover does not exceed 25 crores in the last five financial years.
3- It is working towards innovation, development, deployment, and commercialization of new products, processes, or services driven by technology or
Points to be remember :-
1- A corporation, entity or a business is termed as a start-up if :-
2- The entity is registered under Companies Act, 2013
3- It is registered under section 59 of Partnership Act, 1932, as a partnership firm
4- Or registered under Limited Liability Partnership Act, 2002, as a limited liability partnership
Small Business & Shops Registration
Compulsory other documents
1- Annexure A Self Declaration 1
2- Annexure B Self Declaration For Self Attestation
3- Actual photo of the establishment in which the signboard (name) of the establishment duly displayed, appears
The First step to start / register any business ( in our case, business’s based on agriculture, renewable energy etc ) is to get the “Shop Act” license, its also called as Shops and Establishments Registration permission.
1- Photo Identity ( Minimum one )
2- PAN card
4- Aadhar Card
5- Driving License
6- Election/ Voters ID
Above are the minimum documents, you will need to register for shop act license
Depending on the type of your business, you may also require some of the following documents,
Other document ( minimum 1 )
1) Copy of the licence, registration which is mandatory under any other law from any authority before starting of the business
Business Identification documents( minimum 1 )
2- MOA (Registration Certificate)
3- List of the Trustees/Member of Trust
4- Registered Address and proof thereof
5- Resolution of society regarding starting of business
6- List of the Chairman and Member of co-operative society
7- List of Directors and Nomination of Directors (Resolution)
8- Copy of Registration Certificate given by Charity Commissioner
9- Certificate of Incorporation, Commencement Certificate under the company act
10-Partnership Deed (Upload Deed pages which have name of partners, signature of partners,Business / Company Name, percentage of partnership )
In order to obtain tax benefits, one has to obtain a certificate from the Inter-Ministerial Board of certification. The board consists of the following:
1- Joint Secretary, Department of Industrial Policy and Promotion.
2- Representative of Department of Science and Technology.
3- Representative of Department of Biotechnology.
Points to be Remember :- an entity shall be considered a startup only if it aims to develop and commercialize – a new product or a service or a process or significantly improves on a product or service or process which will add significant value for customers or workflow.
So if your Startup is like another E-commerce Startup Website or IT Sector then its not Eligible for the tax benefits as you will be not defined as Startup.
Key announcements made during the Startup India Standup India action plan
1- Start-ups will be exempted from paying income tax on their income for the first 3 years
2- 80% rebate on filing a patent application.
3- Fast track mechanism for patent applications
4- Exemption of tax on capital gain. And when person invests its own wealth, then they will get exemption from capital gains tax.
5- Mobile app will be launched on April 01, 2016 which will enable start-ups to get registered within a day. The app will have a small application form for registration.
6- Web portal will be launched on April 01, 2016 for clearances, approvals, and registrations
7- Compliance regime based on self-certification
8- No inspection for 3 years of start-up businesses in respect of labor, environment law compliance post self-certification
9- Easier norms for start-ups to exit within 90 days. Bill will be introduced in the parliament.
10-Relaxed norms of public procurement for start-ups. There would be no requirement of turnover or experience.
11-Government will setup a fund with an initial corpus of Rs. 2, 500 crore and total corpus of Rs. 10, 000 crore over a period of 4 years
12-A hub for startup India will be started with single point of contact.
Why to Register a Company in India
Registration of Shops & Establishments under the Bihar Shop & Establishment Act, 1953 & Bihar Shop & Establishment Rules, 1955.
Documents required and process to get Shop Act License
Small Business Registration
Type of Business documents( minimum 1 )
RBI Permission Copy
RTO Transport Permit
Copy of Collector Permision
License From Agriculture Department
Food Licence from concern authority
The Food and Drugs Administration License
NOC from Police Department for Cyber cafe
IEC certificate for Import-Export business
Certificate issued by SEBI for share broker
Licence from Police Department for Security Services
NOC by Municipal corporation for floor mill / masala mill
Copy of Excise license for wine shop/Beer Bar/ Bar and Restaurant
NOC from Municipal Commissioner,Fire Brigade, Collector and Police Department
Address Proof of the place where you want to start the business
1- Rent Receipt
2- Telephone Bill
3- Electricity Bill
4- Sale / Purchase Deed
5- Property Tax Paid Receipt
6- Notarized Leave and License
7- Society Maintenance Receipt
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