How to Get a Business License in India

There are a lot of requirements to obtain a business license in India.

In order to start a business, you will need to obtain a business license in the nation or county or locality where you intend to do business, even if you don't live in that area. These procedures vary greatly based on location and these may also be time-consuming. You must start on this process as early as possible and simultaneously work on your other requirements. In India, it may take at least three months to obtain all permits necessary to obtaining a business license.

Instructions

1. Obtain the Director Identification Number (DIN) on line, which is available on the Ministry of Corporate Affairs 21st Century (MCA 21) portal under "resources." This may cost around 100 Indian Rupees (INR). This is roughly U.S. $2 as of July 2010.

2. Obtain a Digital Signature Certificate on line in order to use the new electronic filing system under MCA 21. This may cost around INR 400 to INR 2650 (U.S. $8 to $56) as of July 2010.

3. Reserve the company name with the Registrar of Companies (ROC) on line. You can check the availability of your desired name on the MCA 21 website. This process may cost around INR 500 (U.S. $10) as of July 2010.

4. Stamp the company documents at the Superintendent's office or an authorized bank. Ensure that these documents are unsigned and contain no written content. The rate of stamp duty varies based on the Indian state where you seek a license. This may cost around INR 1300 (U.S. $28) or more as of July 2010.

5. Present the necessary documents, along with the registration fee, to the ROC in order to get the Certificate of Incorporation. The fee is INR 15,823 (U.S. $339) as of July 2010. Ensure all the documents are available and check them carefully.

6. Make a seal. Though this is not legally required, you will need the seal if you want to issue corporate shares. This will cost around INR 350 (U.S. $7.50) as of July 2010.

7. Visit an authorized franchise or agent appointed by the National Securities Depository Services Limited (NSDL) or Unit of India (UTI) Investors Services Ltd to get a Permanent Account Number (PAN). This will cost INR 71 (U.S. $1.50). This is necessary to pay taxes.

8. Obtain a Tax Account Number (TAN) for income taxes deducted at the source from the Assessing Office in the Mumbai Income Tax department. This will cost INR 55 (U.S. $1).

9. Register with the Office of Inspector, Mumbai Shops and Establishment Act. This will cost more than INR 2000 (U.S. $43) as of July 2010.

10. Register for the Value-Added Tax (VAT) with the Sales Tax officer of the ward where you will start your company. This will cost INR 5100 (U.S. $110) as of July 2010.

11. Register for the profession tax. This is free of charge. The registration authority for the Mumbai Area is situated at Vikarikar Bhavan, Mazgaon in Mumbai.

12. Register your company with the Employees' Provident Fund Organization by contacting their regional branch. This is free of charge.

References

• Starting A Business in India

Resources

• Obtaining a DIN in India