Introduction:
An innovative business unit can be termed as a growth engine for any organization be it sole proprietorship/ Company/ Partnership/ LLP as the case may be as it helps to boost productivity, increase entity’s overall turnover, generate employment and contribute to the overall economic growth of the country in a systematic manner.
Now for the purpose of setting up of a business unit there are few initial requirements which every organization must avail while planning for starting a new business ;
Basic requirements to set up a Business Unit:
For the purpose of commencement of a business the concerned entity must ensure that the following registrations have been obtained, most of the procedures are online the applicant need not to visit any office physically for the same:
1. Obtaining Trade License
2. Getting registered for Professional Tax
3. Opening a Current Account in any Bank
4. Obtaining DSC
5. Applying for Goods and Service Tax (GST)
6. Obtaining MSME Registration
Requirement of Trade License:
Obtaining a Trade License is the most important procedure as it grants the right to a business owner to conduct a particular business in a specific area and also promotes fair trade practice and seeks to safeguard the public from health hazards of any trade.
For the issuance of the trade license (in West Bengal) the applicant can follow this online procedure:
The applicant can apply through Online e- district portal http://edistrict.wb.gov.in to get the license.
A Common Application Form (CAF) has been introduced for the issuance of Trade License, which is available in the home page of the portal of West Bengal e-district Unified License for Trade & Shops Tab. All basic information details related to trade license and registration of shops and establishment details are captured here.
Following Documents are required for the procedure:
- Voter ID Card / Driving License /Passport/Aadhar Card(for Identity Proof )
- For proof of ownership(any of the following):
- For the owner of the premises – current Municipal Property Tax Receipt
- For the tenant of the premises – photo copy of the current Rent Receipt/Challan from Rent Control.
- For the lessee of the premises – copy of the Lease Agreement.
- For rent free premises – current consent letter mentioning the area received from the consenter in original along with Certificate of Entitlement of the consenter (if any) along with the current Municipal Property Tax Receipt of the consenter.
- For Partnership Firm – copy of all Partnership deeds.
Requirement of Professional Tax: Professional Tax is a Direct Tax Levied by the State government and registration is required to be obtained within 30 days of employing stuff in a business. The maximum limit that can be imposed as professional tax is 2500/- per annum.
For the Professional Tax Registration (in West Bengal) following online procedure can be followed:
For obtaining the Professional Tax registration an applicant needs to submit an application made in Form 1 online, on the State sales tax department website. Provided that this application has to be made within 30 days of becoming liable to pay the professional tax
Following Documents are required for the procedure:
- Certificate of Incorporation / LLP Agreement
- MOA and AOA
- PAN Card of Company/LLP/Proprietor/Owner/Director
- NOC from the landlord, where the business is situated
- Passport size photos of Proprietor/Owner/Director
- Address and identity proof of Proprietor/Owner/Director
- Details of employees and salaries paid
- Additional registrations and licenses
Requirement for GST Registration: GST has been introduced in India on 2017 for the purpose of preventing cascading effect in taxation of Indirect taxes, it has subsumed various indirect taxes which were in effect before GST. On crossing of a stipulated threshold limit of turnover the entity must obtain the registration, however voluntary registration can be done.
For Obtaining GST Registration following registration can be followed:
Apply through online GST portal https://www.gst.gov.in/
Following Documents are required for the procedure:
- Aadhar card & PAN card of all Directors
- Valid Indian mobile number & E-Mail address
- Business Address proof(If business place is rental, Rental agreement / Lease agreement)
- NOC from the Landlord / Owner (even if the place is one of the Directors’)
- Recent Electricity Bill OR Property Tax receipt
- Company PAN & Memorandum of Association (MOA) & Certificate of Incorporation
Requirement of MSME Registration: MSME Registration is for the benefit of Small Business units with the purpose of making accessible all the government tenders to them, and in terms of taxation, loans and such other financial schemes without any hassle. Government has launched UDYAM Registration Portal for this purpose which is an entirely online process.
For MSME Registration (in West Bengal) following online procedure can be followed:
It’s not mandatory for all the MSME(s) to obtain the registration however it’s beneficial in several terms for any small, medium or micro business unit.
An applicant can get the registration from the government portal of https://udyamregistration.gov.in/
Following Documents are required for the procedure:
- Aadhar card, PAN Card and Aadhar registered contact number & E-Mail address
Requirement of DSC Registration: A DSC or a Digital Signature Certificate ensures the authenticity of the identity of the business owner and provide security and privacy to all the online transactions. So it is advised to all the Entrepreneurs or business entities to obtain the DSC for the ease of any electronical exchange.
Following Documents are required for the procedure:
- PAN Card, Aadhar card, Valid Indian mobile number & E-Mail address
- One Passport size photo of the applicant.
Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a piece of professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.
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