Steps to Starts Your Business

When Client Comes to your office

Answer – No

Application for Pan Card to be made in Form No 49A. PAN (Permanent Account Number)

A PAN card is a card issued under the Income Tax Act, 1961 and it contains a
unique 10-digit alphanumeric code. This code is computer-generated and is
unique to the holder of the card.

The PAN Card is not only issued to individuals. Companies and partnership
firms can also avail a PAN Card and it becomes mandatory for such entities to
have a PAN number when they are filing their income tax returns. Even in case
of individuals, minors, students and Non-Resident Indians can also apply
PAN Card online.

Your Permanent Account Number is not a series of random numbers and letters. The structure of PAN is actually quite interesting.

Here’s what each component of PAN means:

First Three Characters: These are a sequence of alphabets from AAA to ZZZ.

Fourth Character: The fourth character signifies the type of taxpayer that you
are.

  • A – Association of Persons (AOP)
  • B – Body of Individuals (BOI)
  • C – Company
  • F – Firm/Limited Liability Partnership
  • G – Government Agency
  • H – HUF (Hindu Undivided Family)
  • L – Local Authority
  • J – Artificial Judicial Person
  • P – Individual
  • T – Trust

Fifth Character: The fifth character in PAN is the first letter of your surname.
So, if a person is named ‘Rajesh Khanna’, the fifth character of his PAN will be
‘K’.

Sixth to Ninth Characters: This is from a sequence of numbers between 0001
and 9999.

Last Characters: This is an alphabet check letter.

Individuals & HUFProof of Identity
a. Aadhaar Card issued by the Unique Identification
Authority of India
b. Elector’s photo identity card;
c. Driving License;
d. Passport
e. Ration card having photograph of the applicant;
Proof of Address
a. Aadhaar Card issued by the Unique Identification
Authority of India
b. Elector’s photo identity card;
c. Driving License;
d. Passport
e. Post office passbook having address of the
applicant;
Proof of date of birth
a. Aadhaar Card issued by the Unique Identification
Authority of India
b. Elector’s photo identity card;
c. Driving License;
d. Passport
e. Matriculation certificate or Mark sheet of recognized board;
f. Birth certificate issued by the municipal authority or any office authorised to issue birth and death certificate by the Registrar of Birth and Deaths
Note : For HUF, an affidavit made by the Karta of Hindu Undivided Family stating name, father’s name and address of all the coparceners on the date of application and copy of any of the above documents in the name of Karta of HUF is required is required as proof of identity, address and date of birth.
CompanyCopy of certificate of registration issued by Registrar
of Companies.
Partnership Firma. Copy of certificate of registration issued by Registrar of firms or
b. Copy of Partnership Deed.
Limited Liability
Partnership
Copy of Certificate of Registration issued by the
Registrar of LLPs
Association of Persons
(Trust)
a. Copy of trust deed or
b. Copy of certificate of registration number issued
by Charity Commissioner.
Association of Person,
Body of Individuals,
Local Authority, or
Artificial Juridical
Person
a. Copy of Agreement or
b. Copy of certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority or any other document originating from any Central or State Government
Department establishing identity and address of such person.
  1. A Proprietorship
  2. Partnership
  3. LLP (Limited Liability Partnership)
  4. Private Limited Company
  5. OPC etc.

Each entity has its Advantages & Disadvantages.

  1. Taxation Rates
  2. Legal Compliances
  3. Expenses for incorporation
  4. Time for incorporation
  5. GST Compliances

We will Discuss one by one now,

  1. PROPRIETORSHIP

Following Compliances, you need to do in proprietorship:
i. Gumasta/Shop Act
ii. PTEC/PTRC
iii. GST Registration
iv. Yearly Income Tax Return and Audit
Note : Accounting is very important for every business.

2. PARTNERSHIP

For formation of Partnership Deed

i. Stamp Paper – Value (depending upon capital)
Eg. In Maharashtra, If Capital of Partnership is upto 50,000/- Rs. 500
Stamp Paper is required. (1% of the amount of share contribution)
Note : The Stamp Paper must be in name of Firm or Partners. You can
make Notary to Stamp Paper after preparation of Deed.
ii. Name of Partners
iii. Name of Business
iv. Date of Commencement of Business
v. Registered Office Address
vi. Nature of Business
vii. Initial Contribution & Partners Sharing Ratio

  • Blank Stamp Paper of value of Rs. 100/-
  • Covering letter with Rs. 5 Court Fees Stamp on it.
  • Online uploaded Form A Duly Notarized
  • Copy of English Partnership Deed Duly attested
  • Converted Marathi Partnership Deed Duly attested
  • Letter of Authority duly signed by all the partners and CA/ Advocate who is submitting form.
  • Any particular business requiring License to carry out the business the copy of License is to be submitted along with the submission.
  • Envelope with Postal Stamp of Rs. 30/-

It offers limited liability, offers tax advantages, can accommodate an
unlimited number of partners, and is credible in that it is registered with
the Ministry of Corporate Affairs (MCA).

At the same time, it has fewer compliances than a private limited company
and is also significantly cheaper to start and maintain.

  1. Minimum Two People: Two people are needed to register the LLP. However, there is no limit on maximum partners.
  2. No Minimum Capital: Capital in case of LLP is depending on the need of the business and contribution to partnership by partners. The Stamp Duty on the deed is based on the amount of capital.
  3. Resident Person requirement: One Designated partner of LLP must be from India.
  4. Unique Name: Name of the LLP should be unique, and it must not be same or similar to the name of any existing company, LLP or trademark which is registered or applied for.
  1. Latest passport size Photographs of all partners
  2. PAN (Permanent Account Number) of all Partners (Minimum 2)
  3. Identity Proof of each partner, (Aadhar Card, Passport, Driving License or Voter ID Card)
  4. Address Proof of all partners (Bank Statement or Passbook, electricity bill, telephone bill, Aadhar card or any utility bill)
  5. Copy of Mobile bill, telephone bill, electricity bill or Bank Statement of all Partners with Present address.
  6. Registered Office Address Proof – Electricity Bill along with Rent Agreement / ownership proof of proposed registered office.
  7. Stamp paper for LLP Agreement of State where LLP is to be Incorporated.
  8. Documents Must be self attested.
  1. To register a private limited company, a minimum of two adult persons are required to act as Directors of the company.
  2. A private limited company must have a minimum of 2 Directors and can have a maximum of 15 directors.
  3. One of the Director of a private limited company has to be an Indian Citizen and Indian Resident. The other director(s) can be a Foreign National.
  4. Two persons are also required to act as shareholder of a company. The shareholders can be natural persons or an artificial legal entity. Hence, a company can be owned by two corporate, which are domiciled in India or abroad.

Choose OPC because

The following is the eligibility guidelines for OPC Registration in India.

  • Can have more than 1 director, but the shareholder cannot be more than 1.
  • Not affected by the death of a member or shift in ownership.
  • Effortless to set up and maintain comparatively.
  • Restricts the liabilities of its members.
  • Minimum Paperwork is needed.
  • Can work as Stockbroker or Sub-broker.
  • Not multiple compliances.
  • No interference from any third party is seen.
  • Even no person is permitted to incorporate more than 1 one-person company.

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