Procedure 1.
Obtain director identification number (DIN) on-line
Time to complete: 1 day
Cost to complete: INR 100
Comment:
The process to obtain the Director Identification Number (DIN) is as follows:
- Obtain the provisional DIN by filing application Form DIN-1 online. This form is on the Ministry of Corporate Affairs 21st Century (MCA 21) portal (www.mca.gov.in). The provisional DIN is immediately issued. The application form must then be printed and signed and sent for approval to the ministry by courier along with proof of identity and address.
- The concerned authority verifies all the documents and, upon approval, issues a permanent DIN. The process takes about 4 weeks.
- Within 30 days of receipt of the approved DIN, directors submit Form DIN-2 to the MCA with the approved number of all companies of which they hold a director position.
- The above companies submit Form DIN-3 attested by the Company Secretary to the concerned Registrar of Companies (ROC).
Procedure 2.
Obtain digital signature certificate on-line
Time to complete: 1-6 days
Cost to complete: INR 400 to INR 2650
Comment:
The digital signature certificate can be obtained from six private agencies authorized by MCA 21. To use the new electronic filing system under MCA 21, the applicant must obtain a Class-II Digital Signature Certificate. Company directors submit the prescribed application form along with proof of identity and address. Each agency has its own fee structure, ranging from INR 400 to INR 2650.
Procedure 3.
Reserve the company name with the Registrar of Companies (ROC) on-line
Time to complete: 2-3 days
Cost to complete: INR 500
Comment:
Company name approval must be done electronically. Under e-filing for name approval, the applicant can check the availability of the desired company name on the MCA 21 Web site. The Registrar of Companies electronically informs the applicant whether the name is available within 7 days of the date of application submission. In practice, if the proposed name is available, the approval is granted within 2 or 3 days.
Procedure 4.
Stamp the company documents either at the Superintendent or an authorized bank
Time to complete:1 day
Cost to complete: Rs. 200 (for MOA) +Rs. 1000 (for AOA) for every Rs.500,000/- or part thereof +Rs. 100 (stamp paper for declaration Form 1)
Comment:
The request for stamping the incorporation documents should be accompanied by unsigned copies of the memorandum and articles of association and the payment receipt.
The company must ensure that the copies submitted to the Superintendent of Stamps or to the authorized bank for stamping are unsigned and that no promoter or subscriber has written anything on it by hand. The Superintendent returns the copies, one of which is duly stamped, signed, and embossed, showing payment of the requisite stamp duty.
The rate of stamp duty varies from state to state.
According to Article 10 and Article 39 of the Indian Stamp Act (1899), the stamp duty payable on the memorandum and articles of association for company incorporation in Mumbai, Maharashtra, is as follows:
- Articles of association: INR 1000/- for every INR 500,000/- of share capital (or part thereof), subject to a maximum of INR 50,000,000.
- Memorandum of association: INR 200.
- Form-1 (declaration of compliance): INR 100.
Once the memorandum and articles of association have been stamped, they must be signed and dated by the company promoters, including the company name and the description of its activities and purpose, father’s name, address, occupation, and the number of shares subscribed. This information must be in their own handwriting, duly witnessed.
Procedure 5.
Present the required documents along with the registration fee to the Registrar of Companies to get the certificate of incorporation
Time to complete: 3-7 days
Cost to complete: see comments
Comment:
The following forms are required to be electronically filed on the website of the Ministry of Company Affairs: (a) e-form 1; (b) e-form 18; and (c) e-form 32. Along with these documents, scanned copies of the consent of the initial directors, and also of the signed and stamped form of the Memorandum and Articles of Association, must be attached to Form 1;
- The fees for registering a company can be paid online by using a credit card or by payment in cash at certain authorised banks;
- One copy of the Memorandum of Association, Articles of Association, Form 1, Form 32, Form 18 and the original name approval letter, consent of directors and stamped power of attorney must be physically submitted before the Registrar of Companies; and
- The certificate of incorporation is sent automatically to the registered office of the company by registered or speed post.
The registration fees paid to the Registrar are scaled according to the company’s authorized capital (as stated in its memorandum):
- INR 100,000 or less: INR 4,000.
If the nominal share capital is over INR 100,000, additional fees based the amount of nominal capital apply to the base registration fee of INR 4,000:
- For every INR 10,000 of nominal share capital or part of INR 10,000 after the first INR 1,00,000, up to INR 500,000: INR 300.
- For every INR 10,000 of nominal share capital or part of INR 10,000 after the first INR 500,000, up to INR 5,000,000: INR 200.
- For every INR 10,000 of nominal share capital or part of INR 10,000 after the first INR 5,000,000, up to INR 1 10,000,000: INR 100.
- For every INR 10,000 of nominal share capital or part of INR 10,000 after the first INR 10,000,000: INR 50.
The payment of fees can be made either (1) offline; one can upload all incorporation documents and generate the payment challan. Against this challan, the applicant has to obtain a demand draft for filing fees amount in favour of "Pay & Accounts Office, Ministry of Corporate Affairs, New Delhi" and this demand draft is payable at Mumai. The applicant has to visit the specified branches of certain banks to make the payments. Upon the receipt of the payments, it takes around one week for clearance of payment. Only after the clearance of payment does the RoC accept the documents for verification and approvals (2) online; the applicant makes the payment through credit cards and the system accepts the documents immediately. Please note that in Mumbai, RoC requests for pre-scrutiny of documents for any correction thereon, before the documents are uploaded, so that once the documents have been uploaded, it can be approved without any further correction. The online filing mechanism requires only one copy of scanned documents to be filed (including stamped MOA, AOA, POA) .
Schedule of Registrar filing fees for the articles and for the other forms (l, 18, and 32):
- INR 200 for a company with authorized share capital of more than INR 100,000 but less than INR 500,000.
- INR 300 for a company with nominal share capital of INR 500,000 or more but less than INR 2,500,000.
- INR 500 for a company with nominal share capital of INR 2,500,000 or more.
Procedure 6.
Make a seal
Time to complete:3 days
Cost to complete:
Comment:
Procedure 7.
Visit an authorized franchise or agent appointed by National Securities Depository Services Limited to obtain a permanent account number
Time to complete:7 days
Cost to complete:Rs. 66/- for Fee and Rs. 5/- for Application Form, if not downloaded)
Comment:
Under the Income Tax Act, 1961, each person must quote his or her permanent account number (PAN) for tax payment purposes and the tax deduction and collection account number (TAN) for depositing tax deducted at source. The Central Board of Direct Taxes (CBDT) has instructed banks not to accept any form for tax payment (challan) without the PAN or TAN, as applicable.
The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing officer of the Income Tax Department. The Income Tax Department has outsourced PAN issuance to UTI Investors Services Limited to speed up the process. Any authorized franchise or agent appointed by THE National Securities Depository Services Limited can accept and process a PAN application. If an application is made through a service center, 14 days are required.
The PAN application is made on Form 49A, with a certified copy of the certificate of registration, issued by the Registrar of Companies, along with proof of company address and personal identity. A fee of INR 60 (plus applicable taxes) applies for processing the PAN application and for the request for a new PAN card or changes or corrections in PAN data. PAN forms can be obtained from TIN Facilitation Centers (TINFCs) or freely download from
www.tin-nsdl.com.
Procedure 8.
Obtain a tax account bumber for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department
Time to complete: 7 days, simultaneously with Procedure 7
Cost to complete: INR 55
Comment:
The tax deduction and collection account number (TAN) is a 10-digit alphanumeric number required by all persons responsible for deducting or collecting tax. The provisions of Section 203A of the Income Tax Act require that all persons who deduct or collect tax at the source must apply for a TAN. The section also makes it mandatory for the TAN to be quoted in all tax-deducted-at-source (TDS) and tax-collected-at-source (TCS) returns, all TDS/TCS payment challans, and all TDS/TCS certificates issued. Failure to apply for a TAN or to comply with any of the other provisions of the section is subject to a penalty of INR 10,000/- . The application for allotment of a TAN must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. Locations of TIN Facilitation Centers are at
www.incometaxindia.gov.in and
http://tin.nsdl.com. The processing fee for both applications (a new TAN or a change request) is INR 50 (plus applicable taxes).
The national government levies the income tax. Since outsourcing, any authorized franchise or agent appointed by National Securities Depository Services Limited can accept and process the TAN application.
Procedure 9:
Register with Mumbai Shops and Establishment Act, 1948
Time to complete:2 days, simultaneous with procedure 8
Cost to complete:INR 1,500 + 3 times registration fee for Trade Refuse Charges
Comment:
A statement containing the employer’s and manager’s name and the establishment’s name (if any), postal address, and category must be sent to the local shop inspector with the applicable fees.
According to Section 7 of the Bombay Shops and Establishments Act, 1948, the establishment must be registered as follows:
- Under Section 7(4), the employer must register the establishment in the prescribed manner within 30 days of the date on which the establishment commences its work.
- Under Section 7(1), the establishment must submit to the local shop inspector Form A and the prescribed fees for registering the establishment.
- Under Section 7(2), after the statement in Form A and the prescribed fees are received and the correctness of the statement is satisfactorily audited, the certificate for the registration of the establishment is issued in Form D, according to the provisions of Rule 6 of the Maharashtra Shops and Establishments Rules of 1961.
Since the ammendments in the Maharashtra Shops & Establishment (Amendment) Rules, 2003 dated 15th December 2003, the Shcedule for fees for registration & renewal of registration (as per Rule 5) is as follows:-
1) 0 employees:- Rs. 100
2) 1 to 5 employess:- Rs. 300
3) 6 to 10 employees :- Rs. 600
4) 11 to 20 employees:- Rs. 1000
5) 21 to 50 employees :- Rs. 2000
6) 51 to 100 employees :- Rs. 3500
7) 101 or more:- Rs. 4500
Hence in the given case the registration fees would be INR 2000, as there are 50 employees
In addition, an annual fee (three times the registration and renewal fees) is charged as trade refuse charges (TRC), under the Mumbai Municipal Corporation Act, 1888.
Procedure 10.
Register for VAT before the Sales Tax Officer of the ward in which the company is located
Time to complete: 12 days, simultaneous with previous procedure
Cost to complete: INR 5000 (Registration Fee) + INR 100 (Stamp Duty)
Comment:
VAT tax registration will be effective from the date of application.
In the state of Maharashtra, from April 1, 2005, the sales tax has been replaced by the VAT, which requires registration by filing Form 101. The authorized representative signing the application must be available at the Sales Tax Office on the day of application verification. In addition to Form 101, other accompanying documentation includes:
- Certified true copy of the memorandum and articles of association of the company.
- Registered office address proof of the company.
- Antecedents of directors.
- Copy of the office premises agreement as proof of the place of business (in Mumbai).
- Copy of registration certificate under the Mumbai Shops and Establishments Act, 1948.
- Copy of the income tax order.
- PAN card.
- Bank current account number.
- Original challan of payment of registration fees.
- Two passport-size photographs of the authorized signatory.
- Board resolution authorizing the signatory to sign the application form, appear before the Sales Tax Officer, and complete the formalities related to registration.
Procedure 11.
Register for profession tax
Time to complete: 2 days, simultaneous with procedure 10
Cost to complete: no charge
Comment:
According to section 5 of the Profession Tax Act, every employer (not being an officer of the government is liable to pay tax and shall obtain a certificate of registration from the prescribed authority. The company is required to apply in Form I to the registering authority. The registration authority for Mumbai Area is situated at Vikarikar Bhavan, Mazgaon, Mumbai. Depending on the nature of the business, the application should be supported with such documents as address proof, details of company registration number under Indian Companies Act (1956), details of head office (if the company is a branch of company registered outside the state), company deed, certificates under any other act, and so forth.
Procedure 12.
Register with Employees' Provident Fund Organization
Time to complete: 2 days, simultaneous with procedure 10
Cost to complete: no charge
Comment:
The Provident Commission is part of local labor authority. The applicant fills in an application and is then allotted a social security number. The Provident Fund registration focuses on delinquent reporting, underreporting, or nonreporting of workforce size. Provident Fund registration is optional if workforce size is not more than 20.
Procedure 13.
Register for medical insurance (ESIC)
Time to complete: 1 day, simultaneous with procedure 10
Cost to complete: no charge
Comment:
Registration is the process by which every employer/factory and every employee employed for wages are identified for the purpose of the medical insurance scheme and their individual records are set up for them. As per the Employees' State Insurance (General) Form 01 is the form required to be submitted by Employer for registration.
