How can an Expat start a business in India
India is one of the hottest places to invest at the moment, so opening a business in India is looking increasingly attractive every day. This is where the money is to be made and you are definitely at an advantage if you are of Indian origin.
Why India?
India is one of the friendliest countries when you think in terms of starting a business. The rules and regulations involved when starting a business in India are much more lenient than in many countries. This is especially true if you are looking to start a small scale business.
Before you start your business, you need to plan it out and see what your strategy will be. What products or services will you offer, what markets to look at and all that. Remember that business is not just about buying or selling goods. It is much more than carrying out transactions. This is the mark of a good businessman.
Business is basically a system or a set of systems which you must adhere to in order to gain profit and at the same time ensure that you are satisfying the needs of your customers. Planning is probably the most important step of setting up a business. Next, you need to decide on a name for your business.
Once you are done naming the business, what you need to do is open a bank account in the name of your business. Opening a bank account means that you need to have an office-You have to furnish a valid address for your business. What is more, you also need to provide address proof or evidence that your business is actually situated where you claim it is.
Steps To Set Up a Business
Next, there are several legal formalities you need to take care of:
• First, you need to get a direct identification number online from the Ministry of corporate affairs. You’ll be charged a hundred rupees for this.
• Next, you need to get the digital signature certificate online from a private agency which has been certified by the ministry. This will cost you fifteen hundred rupees.
• Then you need to reserve the company name online with the Registrar of Companies, for the sum of five hundred rupees.
• Get the company documents stamped at the state treasury. This takes about thirteen hundred rupees.
• Then you have to obtain a Certificate of Incorporation from the registrar of companies.
• Get a seal done – it costs about three fifty rupees, but is dependent on the number of seals.
• Apply PAN card (permanent account number) - PAN card fees vary depending on whether you are an expat based out of India or living in India.
• Get a TAN number. Fees vary again.
• Following this, you need to register with the office of the Inspector, Shops and Establishment Act, this takes about six thousand, five hundred rupees.
• Next you need to register for VAT at your State office. This takes about five thousand one hundred rupees.
• Next you need to register for profession tax – this is free.
• Register with employees’ provided fund organization at no cost again.
• Finally, you need to register for medical insurance – at no cost.
This might seem like a long drawn procedure and granted, it is. But compared to other countries, setting up a business in India is relatively simple, so what’s stopping you?