Step 1 : Registration of a Startup Company in India.
An entrepreneur can register a startup as :-
- Proprietorship Firm
- Partnership Firm
- Private Limited Company
- Limited Liability Partnership.
Step 2 : Open a Bank Current Account
A bank current account is important to transacts the financial transactions of the business. So all entrepreneurs must open a bank account in the name of Business. A bank account in the name of business is essential for reliable transaction of money. A proprietor firm required Trade License issued by the local self governments to open a current account in the Trade Name, otherwise open an account in proprietor name.
Mandatory Registration and License’s required to start a business in India
- D & O Trade License : Trade License is a permission or license issued by the local government like Panchayat, Municipality or Municipal Corporation to the business establishments for carry out commercial activities in its local limits. If any one required to setup a business place or office at any where in India, they must register their business name in the local government and must obtain a trade license certificate. This certificate Commonly known as D & O License. In most cases the Health Department of the Concerned authority issued the Trade License. Trade License is a promise by the business establishment to the concerned government against the sale of prohibited goods, drugs, offensive goods and pollution. Trade License Registration is a compulsory requirement in Kerala for the payment of Professional Tax.
- Shop and Establishment License : Every commercial or industrial or trading or banking or insurance establishment, an establishment or administrative service in which the persons employed are mainly engaged in office work, hotel, restaurant, boarding or eating house, cafe or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such other establishment as the Government may, by notification in the Gazette, declare to be a commercial establishment for the purposes of this Act, but does not include a factory to which all or any of the provisions of the Factories Act, 1948 (Central Act 63 of 1948)
- Labour Welfare Fund Registration : Labour Welfare fund is for promoting the welfare of labour’s and certain other matters connected herewith in the State of Kerala. It will come under the preview of THE KERALA LABOUR WELFARE FUND ACT, 1975. Every Establishment registered under shop and establishment act 1960 come under the scope of labour welfare fund and must contribute for the Fund. Any person who is employed for hire or receive any remuneration for any work done in an establishment by working a period not less than 30 days during the preceding twelve months eligible for labour welfare fund deduction. Both the employee and employer must contribute to the Fund. This fund will be utilized for the benefits of the members in Labour Welfare Fund. Every member who required the benefit of fund must file an application to Labour Welfare Board.
The above mentioned registrations are mandatory for all business organizations registered in India. It is applicable to business establishments irrespective of no. of employees working in the Organization.
Other Registrations applicable to a business establishments in India
ESI Registration : Employees State Insurance is applicable to establishments having employees more than 10 on any year. It is a mandatory registration required by the law for the well being of employees in that organization. And it is mandatory for employees whose monthly salary is below 21,000. But for the purpose of counting the employees it will take all employees.
EPF Registration : Employees provident fund is savings scheme introduced by the Central Governments to develop the savings among the employees. EPF Scheme is applicable to establishments having more than 20 employees on any year. It is also mandatory registration required by the law. It applicable to employees whose salary, Basic plus DA is less than 15,000 per month.
Import Export Code : Any business or entrepreneur intent to do import or export activities must obtain an identity number called Import Export Code from DGFT. Directorate General of Foreign Trade is the approved authority in India to issue the IE Code. The business must quote IEC on all foreign transactions.