Starting an online company is an exciting prospect. Even if you start out as a small business, there’s endless room to grow. Before you open up shop, it’s important that you take steps to properly establish your company.
After brainstorming a name, you can visit the MCA 21 website to determine if your name is available. You can submit up to six names to improve your chances of having one approved. Once you’ve discovered which names are approved, you can reserve one for your business.
Now that you have a name, you need to compile necessary documents and register your business. You can fill out the DIN-1 online to get your provisional Director Identification (DIN) number. To get your permanent DIN number, print and sign the application and send it along with proof of your identity and address to the ministry for approval. You also need to fill out an application at one of the six approved private agencies authorized by MCA 21 to obtain a digital signature certificate.
To obtain the Certificate of Incorporation, you can visit the website of the Ministry of Company Affairs and fill out a variety of forms online. To obtain a Permanent Account Number (PAN), fill out the 49A form at the NSDL website or at a Tin Facilitation Center. You also need to fill out form 49B to obtain a Tax Account Number (TAN).
If your company’s annual turnover is greater than Rs 20 lakh (Rs 10 lakh in certain states), you need to register for GST. You can register at the GST online portal. You also need to obtain a certificate of registration for the Profession Tax at the Profession Tax Office.
If you have employees, you may also need to register with the Employees’ Provident Fund Organization (EPFO). You may also need to register for medical insurance and get your accounting for small business needs ready to go, including setting up a payment processor, establishing payroll, and opening a business bank account.
While starting a small business does require quite a bit of legwork, the effort is worth it. After all, an online store gives you access to a massive global market. Get started as soon as possible, and you should be up and running in no time.