More and more young Indians are opening their own businesses in India.
Entrepreneurs and young professionals are increasingly establishing their own companies in India. With the economic boom in India and the effects of globalization, many businesses have arisen, including website creation, data entry and writing and translation. There is great demand for companies from India because of the presence of skilled and highly educated employees available at low salaries. Starting a company in India can be a bureaucratic struggle but offers many competitive advantages.
Instructions
1. Finalize the shareholders and the management team of the company. Proper consultation with marketing experts can help to decide whether the company should be public or private. A complete business plan should be prepared laying out initial investment, human resources and business strategy.
2. Decide upon a company name and engage the services of a copyright researcher to make sure the name is available and to obtain exclusive rights to that name. Send the proposal to the Registrar of Companies (ROC) for approval. Upon approval, the company will receive a signed and sealed Memorandum and Articles of Association. These documents are presented to an authorized bank to receive a stamp. Then the documents are sent back to the ROC.
3. Obtain a permanent account number (PAN) from UTI Investors Services Ltd., headquartered in Mumbai. A valid tax account number must also be obtained from the Assessing Office in the Income Tax Department for income tax deductions. A company must also register for the national value-added tax (VAT), profession tax and other taxes to complete most of the financial formalities.
4. Register with Employees' Provident Fund Organization for retirement procedures. Other formalities include proof of medical insurance (ESIC). Finally, all documents are filed with the Reserve Bank of India (RBI) and the Foreign Investment Promotion Board (FIPB) for governmental approval.
