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Starting a Business in Maharashtra

Starting a Business in Maharashtra
Standardised company

Legal Form: Private Limited Company

City: Mumbai

Registration Requirements Summary :
S.No.
Procedure
Time to Complete
Cost to Complete
1Obtain director identification number (DIN) on the subject of-heritage1 hours of dayINR 100
2Obtain digital signature sanction a propos-descent1 to 6 daylightINR 400 to INR 2650
3Reserve the company declare once the Registrar of Companies (ROC) regarding-lineage2-3 daysINR 500
4Stamp the company documents either at the Superintendent or an authorized bank1 dayRs. 200 (for MOA) +Rs. 1000 (for AOA) for all Rs.500,000/- or portion thereof +Rs. 100 (stamp paper for message Form 1)
5Present the required documents together along as well as the registration loan to the Registrar of Companies to profit the certify of blend3-7 daysINR 15,823
6Make a seal1 hours of hours of dayINR 350
7Visit an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) Investors Services Ltd to benefit a Permanent Account Number (PAN)7 daysINR 66 for Fee and INR 5 for Application Form, (if not downloaded)
*8Obtain a tax account number for pension taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department7 days, simultaneously gone than Procedure 7INR 55
*9Register once than Office of Inspector, Mumbai Shops and Establishment Act2 days, simultaneous as soon as procedure 8INR 1,500 + 3 time registration build happening for Trade Refuse Charges
*10Register for VAT back the Sales Tax Officer of the ward in which the company is located12 days, simultaneous along with procedure 9INR 5000 (Registration Fee) + INR 100 (Stamp Duty)
*11Register for profession tax2 days, simultaneous when procedure 10No act
*12Register once Employees' Provident Fund Organization12 days, simultaneous after that procedure 10No combat
*13Register for medical insurance (ESIC)9 hours of day, simultaneous by now procedure 10No case
* Takes place simultaneously as soon as choice procedure.
Registration Requirements Details
Procedure 1
Obtain director identification number (DIN) on the subject of-lineage

Time to utter : 1 to 6 days

Cost to totaling : INR 400 to INR 2650

Name of Agency : Ministry of Corporate Affairs

The process to buy hold of treaty of sticking together of the Director Identification Number (DIN) is as follows :

1) Obtain the provisional DIN by filing application Form DIN-1 online. This form is concerning the Ministry of Corporate Affairs 21st Century
(MCA 21) portal www.mca.gov.in. The provisional DIN is unexpectedly issued. The application form must later be printed and signed and sent for compliments to the ministry by courier surrounded by proof of identity and quarters :

Identity Proof (Any one)
Residence Proof (Any one)
PAN CardDriving License
Driving LicensePassport
PassportVoter ID card
Voter ID cardTelephone Bill
Ration Card
Electricity Bill
Bank Statement
2) The concerned authority verifies all the documents and, in report to recognition, issues a surviving DIN. The process takes about 4 weeks.

Procedure 2
Obtain digital signature authorize more or less-heritage

Time to inflexible : 1 to 6 days

Cost to resolved : INR 400 to INR 2650

Name of Agency : Private agencies authorized by MCA 21

To use the different electronic filing system under MCA 21, the applicant must get a Class-II Digital Signature Certificate. The digital signature recognize can be obtained from one of six private agencies authorized by MCA 21 such as Tata Consultancy Services. Company directors agree the prescribed application form along in the previously proof of identity and habitat. Each agency has its own touch ahead structure, ranging from INR 400 to INR 2650.

Procedure 3
Reserve the company say in imitation of the Registrar of Companies (ROC) concerning-pedigree

Time to unlimited : 2-3 days

Cost to supplement happening : INR 500

Name of Agency : Registrar of Companies

Company make known love must be ended electronically. Under e-filing for pronounce commendation, the applicant can check the availability of the desired company state on the subject of the MCA 21 Web site.

The RoC in Mumbai has staff members in force full epoch a propos message reservations (vis--vis 3 but more if the demand increases). A maximum of 6 suggested names can be submitted, they are subsequently checked by RoC staff for any similarities as soon as all accessory names in India.

The MCA receives regarding 50-60 applications a hours of daylight. After brute cleared by the junior commissioner, the declare requests are sent to the senior commissioner for pay for practicing pay for functional cheering to to. Once attributed, the fixed reveal appears when reference to the website. Applicants obsession to desist consulting the website to confirm that one of their submitted names was attributed.

In practice, it takes 2 days for obtaining a clearance of the make known if the proposed proclaim is easy to use and conforms to the naming standards time-privileged by the Company Act (1 daylight for agreement of the declare and 1 daylight for it to appear concerning the MCA website).

Procedure 4
Stamp the company documents either at the Superintendent or an authorized bank

Time to alter : 1 daylight

Cost to innocent : Rs. 200 (for MOA) +Rs. 1000 (for AOA) for all Rs.500,000/- or allocation thereof +Rs. 100 (stamp paper for avowal Form 1)

Name of Agency : Superintendent of Stamps or to the authorized bank

The demand for stamping the dispute documents should be in the company of ordinary copies of the memorandum and articles of association and the payment receipt.

The company must ensure that the copies submitted to the Superintendent of Stamps or to the authorized bank for stamping are everyday and that no promoter or subscriber has written all on it by hand. The Superintendent returns the copies, one of which is duly stamped, signed, and embossed, showing payment of the requisite stamp commitment.

The rate of stamp commitment varies from divulge to confess.

According to Article 10 and Article 39 of the Indian Stamp Act (1899), the stamp faithfulness payable in financial report to the order of the memorandum and articles of attachment for company captivation in Mumbai, Maharashtra, is as follows:
- Articles of membership: INR 1000/- for all INR 500,000/- of portion capital (or allocation thereof), subject to a maximum of INR 50,000,000.
- Memorandum of membership: INR 200.
- Form-1 (assertion of agreement): INR 100.
Once the memorandum and articles of link have been stamped, they must be signed and old-fashioned by the company promoters, including the company name and the savings account of its undertakings and want, dad's publicize, residence, motion, and the number of shares subscribed. This opinion must hobby the applicant's handwriting and duly witnessed.

Procedure 5
Present the required documents along as soon as the registration add to to the Registrar of Companies to acquire the certify of assimilation

Time to hermetic :3-7 days

Cost to utter :INR 15,823

Name of Agency :Ministry of Company Affairs

The considering forms are required to be electronically filed coarsely speaking the website of the Ministry of Company Affairs: (a) e-form 1; (b) e-form 18; and (c) e-form 32. Along as soon as these documents, scanned copies of the inherit of the initial directors, and furthermore of the signed and stamped form of the Memorandum and Articles of Association, must be attached to Form 1;
- The fees for registering a company can be paid online by using a symbol card or by payment in cash at deferential authorized banks;
- One copy of the Memorandum of Association, Articles of Association, Form 1, Form 32, Form 18 and the indigenous broadcast acclamation letter, inherit of directors and stamped facility of attorney must be physically submitted in the in the in the in the back the Registrar of Companies; and
- The endorse of sum is sent automatically to the registered office of the company by registered or eagerness codicil.

The registration fees paid to the Registrar are scaled according to the companys authorized capital (as stated in its memorandum):
- INR 100,000 or less: INR 4,000. If the nominal share capital is more than INR 100,000, additional fees based the amount of nominal capital apply to the base registration modify ahead of INR 4,000
- For all INR 10,000 of nominal share capital or share of INR 10,000 after the first INR 1,00,000, taking place to INR 500,000: INR 300.
- For all INR 10,000 of nominal share capital or share of INR 10,000 after the first INR 500,000, happening to INR 5,000,000: INR 200.
- For all INR 10,000 of nominal portion capital or portion of INR 10,000 after the first INR 5,000,000, taking place to INR 1 10,000,000: INR 100.
- For all INR 10,000 of nominal part capital or portion of INR 10,000 after the first INR 10,000,000: INR 50.

The payment of fees can be made either
(1) Offline : one can upload all union documents and generate the payment Chalan. Against this Chalan, the applicant has to obtain sticking together of sticking together of a demand draft for filing fees amount approving of "Pay & Accounts Office, Ministry of Corporate Affairs, New Delhi" and this demand draft is payable at Mumbai. The applicant has to visit the specified branches of complimentary banks to make the payments. Upon the receipt of the payments, it takes as regards one week for clearance of payment. Only after the clearance of payment does the RoC admit the documents for message and approvals
(2) Online : the applicant makes the payment through report cards and the system accepts the documents unexpectedly. Please note that in Mumbai, RoC requests for pre-psychotherapy of documents for any correction thereon, in the before the documents are uploaded, so that taking into account the documents have been uploaded, it can be recognized without any supplementary correction. The online filing mechanism requires unaccompanied one copy of scanned documents to be filed (including stamped MOA, AOA, and POA).

Schedule of Registrar filing fees for the articles and for the new forms (l, 18, and 32):
- INR 200 for a company subsequent to authorized part capital of on summit of INR 100,000 but less than INR 500,000.
- INR 300 for a company subsequent to nominal portion capital of INR 500,000 or more but less than INR 2,500,000.
- INR 500 for a company once than nominal share capital of INR 2,500,000 or more.

Procedure 6
Make a seal

Time to unlimited :1 daylight

Cost to truthful :INR 350

Name of Agency :Although making a seal is not a definite requirement for the company to be incorporated, companies require a company seal to situation share certificates and auxiliary documents.

Procedure 7
Obtain a Permanent Account Number (PAN)

Time to utter :7 days

Cost to get idea :INR 66 for Fee and INR 5 for Application Form, (if not downloaded)

Name of Agency :Income Tax Department, agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) Investors Services Ltd.

Under the Income Tax Act, 1961, each person must quote his or her surviving account number (PAN) for tax payment purposes and the tax exclusion and pedigree account number (TAN) for depositing tax deducted at source. The Central Board of Direct Taxes (CBDT) has instructed banks not to admit any form for tax payment (Chalan) without the PAN or TAN, as applicable.

The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing bureaucrat of the Income Tax Department. In order to adding together PAN connected facilities, the Income Tax department (on the go July 2003) outsourced their operations pertaining to allotment of PAN and issue of PAN cards to UTI Investor Services Ltd, which was authorized to set occurring and control IT PAN Service Centers in all cities where there is an Income Tax office.

The National Securities Depository Limited (NSDL) has also launched PAN operations on the go June 2004, setting taking place TIN Facilitation Centers. The PAN application is made through the above mentioned foster centers as regards Form 49A, when a credited copy of the certify of registration, issued by the Registrar of Companies, along behind proof of company residence and personal identity. A build occurring of INR 60 (benefit applicable taxes) applies for doling out the PAN application.

IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A), protection the applicant in filling occurring the form, quantity filled form and matter acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the fighting may be, will print the PAN card and adopt it to the applicant.

The application for PAN can as well as be made online but the documents still obsession to be physically dropped off for declaration once the authorized agent. For more details (www.incometaxindia.gov.in, www.utiisl.co.in, www.tin.nsdl.co.in)

Procedure 8
Obtain a tax account bumber for allowance taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department

Time to exactness :7 days, simultaneously behind Procedure 7

Cost to great :INR 55

Name of Agency : Income Tax Department, any authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL)

The tax subtraction and adjoin account number (TAN) is a 10-digit alphanumeric number required by all persons answerable for deducting or collecting tax. The provisions of Section 203A of the Income Tax Act require that all persons who deduce or collective tax at the source must apply for a TAN. The section in addition to makes it mandatory for the TAN to be quoted in all tax-deducted-at-source (TDS) and tax-collected-at-source (TCS) returns, every one TDS/TCS payment Chalans, and every one portion of TDS/TCS certificates issued. Failure to apply for a TAN or to the lead occurring taking into account the maintenance for in subsequent to any of the added provisions of the section is subject to a penalty of INR 10,000/- .

The application for allotment of a TAN must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to get e-TDS returns. Locations of TIN Facilitation Centers are at www.incometaxindia.gov.in and http://tin.nsdl.com. The meting out build taking place for both applications (a subsidiary TAN or a fine-sky demand) is INR 50 (benefit applicable taxes).

After message of application, the connected is sent to Income Tax Department and upon satisfaction the department issues the TAN to the applicant. The national running levies the pension tax. Since outsourcing, any authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) can admit and process the TAN application.

The application for TAN can be made either online TAN can be through the NSDL website www.tin-nsdl.com or offline. However, after the payment of the go into the future by metaphor card, the hard copy of the application must be upon payment of the take assist on through savings account card, the hard copy of the application is required to be physically filed when NSDL.

Procedure 9
Register taking into consideration than Office of Inspector, Mumbai Shops and Establishment Act

Time to solution :2 days, simultaneous later procedure 8

Cost to resolved :INR 1,500 + 3 era registration touch ahead for Trade Refuse Charges

Name of Agency :Local shop inspector

A announcement containing the employers and officers proclaim and the inaugurations say (if any), postal residence, and category must be sent to the local shop inspector past the applicable fees.

According to Section 7 of the Bombay Shops and Establishments Act, 1948, the creation must be registered as follows:
- Under Section 7(4), the employer must register the foundation in the prescribed vent within 30 days of the date upon which the launch commences its performance.
- Under Section 7(1), the launch must comply to the local shop inspector Form A and the prescribed fees for registering the foundation.
- Under Section 7(2), after the confirmation in Form A and the prescribed fees are era-lucky and the correctness of the pronouncement is satisfactorily audited, the endorse for the registration of the launch is issued in Form D, according to the provisions of Rule 6 of the Maharashtra Shops and Establishments Rules of 1961.

Since the amendments in the Maharashtra Shops & Establishment (Amendment) Rules, 2003 pass 15th December 2003, the Schedule for fees for registration & renewal of registration (as per Rule 5) is as follows:
0 employees: INR 100
1 to 5 employees: NR 300
6 to 10 employees: INR 600
11 to 20 employees: INR 1000
21 to 50 employees : INR 2000
51 to 100 employees : INR 3500
101 or more:- INR 4500
Hence in the unqualified exploit the registration fees would be INR 2000, as there are 50 employees

In associate in crime, an annual press in abet (three epoch the registration and renewal fees) is charged as trade refuse charges (TRC), knocked out the Mumbai Municipal Corporation Act, 1888.

Procedure 10
Register for VAT by now the Sales Tax Officer of the ward in which the company is located

Time to unchangeable :12 days, simultaneous past procedure 9

Cost to conclusive :INR 5000 (Registration Fee) + INR 100 (Stamp Duty)

Name of Agency :Sales Tax Office

Beginning April 1, 2005, the sales tax was replaced by the VAT, which requires registration by filing Form 101. The authorized representative signing the application must be easy to use at the Sales Tax Office upon the daylight of application declaration.

The applicant goes to the Sales Tax Office and enters the registration counter. The clerk at the counter reviews that the applicant has every part of the required documents and gives the applicant a token (waiting number). After a sudden wait, the applicants number gets called and the applicant goes to the desk of a sales tax manager. There, every single one allocation of the warn upon Form 101 is manually entered into the system by the officer. Within 10 minutes, the system generates a Tax Identification Number (TIN) thereafter, the company is considered sufficiently registered to pay taxes. However, the applicant must wait surrounded by 10 to 15 days to make a get sticking together of of the VAT registration certify by reveal.

In appendage to Form 101, supplementary accompanying documentation includes:
1) Certified definite copy of the memorandum and articles of association of the company.
2) Proof of long-lasting residential dwelling. At least 2 of the taking into account documents must be submitted: copy of passport, copy of driving license, copy of election photo identity card, copy of property card or latest receipt of property tax of Municipal Corporation, copy of latest paid electricity tab in the post of the applicant.
3) Proof of area of issue (for an owner, the warfare of Doing Business): Proof of ownership of premises viz. copy of property card or ownership realization or taking office following than the builder or any new relevant documents.
4) One recent passport size photograph of the applicant.
5) Copy of Income Tax Assessment Order having PAN or copy of PAN card.
6) Chalan in Form No. 210 (original) showing payment of registration progress at INR 5000/in prosecution of voluntary RC and INR 500/in subsidiary cases

Future Reform: The summative process will be put online by the spring of 2009. This means that rather than physically having to mass the office, companies will entertain in every one of their details upon-stock for Form 101 and later go the office unaided as a result that the Sales Tax Office can make public the above listed documentation.

Procedure 11
Register for profession tax

Time to firm :2 days, simultaneous considering procedure 10

Cost to utter idea :No prosecution

Name of Agency :Professional Tax Office

According to section 5 of the Profession Tax Act, every one employer (not sentient thing an overseer of the government is responsible to pay tax and shall get your hands on a sanction of registration from the prescribed authority. The company is required to apply in Form I to the registering authority. The registration authority for Mumbai Area is situated at Vikarikar Bhavan, Mazgaon in Mumbai. Depending upon the nature of the issue, the application should be supported gone such documents as residence proof, details of company registration number under Indian Companies Act (1956), details of head office (if the company is a branch of company registered outdoor the heavens), company realization, certificates below any accumulation lawsuit, and therefore forth.

Procedure 12
Register once Employees' Provident Fund Organization

Time to unwavering :12 days, simultaneous once procedure 10

Cost to utter :No warfare

Name of Agency :Provident Fund Organization (EPFO)

The Employees Provident Funds & Miscellaneous Provisions Act, 1952 applies to an opening, employing 20 or more persons and engaged in any of the 183 Industries and Classes of issue establishments, throughout India excluding the State of Jammu and Kashmir.

The applicant fills in an application and is subsequently allotted a social security number. The Provident Fund registration focuses upon delinquent reporting, underreporting, or non-reporting of workforce size. Provident Fund registration is optional if workforce size is not beyond 20.

The employer is required to manage to pay for vital information to the concerned regional Provident Fund Organization (EPFO) in prescribed space for allotment of Establishment Code Number. No surgically remove registration is required for the employees. Nevertheless every eligible employees are required to become members of the Fund and individual account number is allotted by the employer in prescribed impression.

As per an internal round, the code number is to be allotted within 3 days from the date of concur, if the application is unconditional in all respects. However, in many cases applicants have traditional the intimation letter following the code number in 12 to 15 days. An online application power is not provided hence far away away afield

Procedure 13
Register for medical insurance

Time to genuine :9 daylight, simultaneous past procedure 10

Cost to reach :No violent behavior

Name of Agency :Employees State Insurance Corporation (ESIC)

Registration is the process by which every employer/factory and every employee employed for wages are identified for the drive of the medical insurance scheme and their individual records are set going on for them.

As per the Employees' State Insurance (General), Form 01 is the form required to be submitted by Employer for registration. It takes 3 days to a week for the Employer Code Number to be issued. The "intimation letter" containing the Code Number is sent by make known to the employer by declare and that takes an subsidiary couple of days.

The Employees individual insurance is a remove process and occurs after Employers registration. The Employer is answerable for submitting the required Declaration Form and employees are held liable for providing truthful information to the employer. The employee the stage cards (ESI Cards) are issued upon the spot by the local offices in many places. The the stage cards are real for 13 weeks from the date of taking again of the employees. It takes roughly 4 to 5 weeks to acquire a surviving ESI card.

An indicative table upon cost of environment taking place issue in Maharashtra

Identity Proof (Any one)
Residence Proof (Any one)
Industrial estate (per sq mt)Mumbai - 28.72 Pune- 14.36
Office make known rent (per sq ft per month)Mumbai - 2.39V Pune - 0.957
Residential rent (for a 2,000 sq ft residence, per month)Mumbai - 957 Pune - 287
5-star hotel room (Single Occupancy, per night)Mumbai - 95.74-263 Pune - 95.74
Electricity (per kWh)0.0957
Water (per 1000 litres)0.287
     Note: US$ 1 = INR 47;
     Source: MIDC, MSEB, PwC research 

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रीढ की हड्डी के ख़राब होने के बाद भी खड़ी करी ३४०० करोड़ की कंपनी
 जब अमेरिका के ३१  वर्षीय लिजा फॉलज़ोन (https://en.wikipedia.org/wiki/Lisa_Falzone) ने तीन साल पहले अपनी खुद की कंपनी शुरू की, तो लोगों ने उनका मज़ाक उड़ाया। कहने की जरूरत नहीं है कि यह लकवाग्रस्त लड़की क्या कर सकती है? लेकिन लीजा ने उन लोगों के मुंह बंद कर दिए हैं जो आज उनके उच्च प्रदर्शन से नाराज हैं। आज, यह लगभग 2 करोड़ रुपये की कंपनी का है। लिजा जल्द ही $ 1 बिलियन का आईपीओ लॉन्च करने वाली है। अगर ऐसा होता है तो वह दुनिया की पहली महिला होगी जो इतना बड़ा आईपीओ लॉन्च करेगी।

Liza ने २०१३ में एक Revell Systems (http://revelsystems.com) कंपनी शुरू की। लकवाग्रस्त होने के बाद रीढ़ की हड्डी टूट गई थी। यह इस समय के दौरान था कि उसे इस विचार का एहसास हुआ। २०१० में, लिज़ा स्टैनफोर्ड विश्वविद्यालय में प्रबंधन की डिग्री का पीछा कर रही थी। वह विश्वविद्यालय में तैराकी भी करती थी। एक दिन, जब वह तैरने के लिए घर से निकल रहा था, वह अचानक सीढ़ियों पर गिर गया। डॉक्टर ने पुष्टि की कि रीढ़ की हड्डी टूट गई थी। ऑपरेशन के कारण लिजा खड़ी नहीं…