Below, you’ll find a list of essential and start-up-friendly services, such as how to apply for a food license, the time taken for trademark registration, or the procedure for Udyog Aadhaar registration.
| Register a Company | PF Return Filing | MSME Registration |
| Income Tax Return | FSSAI Registration | Trademark Registration |
| ESI Return Filing | ISO certification | Digital Signature Certificate |
What is GST?
The goods and services are an additional benefit collected or imposed on all goods and services that are meant for selling for domestic consumption. The GST payment is made by customers and remitted via the sale of goods to the government, providing revenue for the government.
What is ARN in GST Registration Online?
ARN or Application Reference Number is generated once the submission of the application is successful to the official GST servers.
What is GSTIN?
GSTIN or Goods and Services Tax Identification Number is a 15-digit number that is assigned to the applicant or businesses when it is successfully registered under GST.
Is there any requirement for Businesses to apply for multiple GST registrations online?
Yes, if a business operates in more than one state, then multiple GST registrations are required.
What happens after obtaining the GST registration?
The taxpayer will receive a GST registration certificate in Form GST REG-06 and a functional GST Identification Number after properly completing the GST registration process. The input tax credit will be available; however, bills must comply with GST, and GST returns must be filed either monthly or quarterly, depending on the situation.
What is the GST tax Rate?
The five different rate slabs for GST tax collection from consumers are 0%, 5%, 12%, 18%, and 28%. But, petroleum products, alcoholic drinks, and electricity are not taxed. Rather, it is charged according to the state government’s rule in every state, as was the case under the old regime.
What are the fees for GST registration?
A business can sign up for free through the GST Registration Portal. The whole process is done online for free.
What is an E-way bill?
An E-way bill is an electronic document that acts as proof of the movement of products worth more than Rs. 50,000. It is accessible to suppliers or individuals transporting goods. Part A contains details such as the GSTIN of the supplier and recipient, the place of delivery, the value of the goods, the HSN code, and the reason for transportation, and Part B contains details of the vehicle and transport papers.
What are the benefits of an E-way bill?
There is no longer a need for state boundary checks because the interaction is entirely digital. It will facilitate the movement of goods more quickly, increase truck turnaround times, and lower costs for the supplier.
What is CGST?
The Central Goods and Services Tax, or CGST, would be imposed under the CGST Act on intrastate sales of commodities and services. In the case of intra-state sales of products and services, the federal and state governments would therefore combine their levies and enter into a revenue-sharing agreement.
Is a PAN card mandatory for registering GST?
The short answer is “yes,” PAN cards are required for GST filing. Except for TDS registration, which can be done with a TAN, GST registration cannot begin without a PAN card.
What happens if the GST application is rejected?
If your application for GST registration was rejected, you will have the opportunity to respond to the rejection notice. However, you would need to wait for a final rejection, which will take about 10 days, if you wanted to submit a fresh application.
How long does it take to get a GST number?
The entire GST registration process, including receiving the GST number, takes 7 to 10 working days.
What is Input Tax Credit (ITC)?
An Input Tax Credit (ITC) is a mechanism that allows a taxpayer to claim a credit for the taxes paid on the purchase of goods or services used in the course of their business. In other words, it is a credit that a registered taxpayer can claim for the GST paid on the purchase of inputs (raw materials, services, etc.) that are used to manufacture or provide a taxable supply.
When can GST registration be canceled?
When a company is terminated, or the business constitution is changed but not updated, the GST registration can be cancelled.
Is GST registration required for an E-commerce startup?
Yes, an E-commerce company must register for GST.
Is a current account necessary for GST registration?
No, it is dependent on the company. A current account is not required for a company to register for GST.
Can I get multiple GST registrations within a state?
Yes, a company may file for as many GST registrations as desired within a state. For ease of doing business, the process of holding multiple GST registrations only for different industries within a state has been eliminated.
What is the threshold limit for GST registration?
If your company’s annual sales are more than 40 lakhs (20 lakhs for north-eastern and hill states), you must register as a regular taxable person and pay taxes. A minimum of 20 lakhs is required from service providers (10 lakhs in northeastern and hill regions).
What is SGST?
State GST or SGST applies to intrastate sales of goods and services, per the SGST Act. Each state’s government administers it. Only SGST liability can be offset by SGST or IGST input tax credit.
What are the types of GST? Who is the founder of GST?
CGST, SGST, IGST, and UTGST are the four different types of GST. These support major economic development programs. In 2000, Atul Bihari Vajpayee formed a committee to study GST and its value in India under the leadership of Finance Minister Asim Dasgupta of West Bengal. He was then given the complete charge for preparing and completing the model on GST. This was a historically significant move by the Modi government during these two terms in office.
What are the three major types of GST and their complete form?
CGST – Central Goods and Services Tax. This is charged for standard commodities and services which includes Central Excise Duty, Central Sales Tax CST, Service Tax, Additional excise duties, excise duty charged over the medical and toiletries preparation Act, CVD (Additional Customs duty – Countervailing Duty), SAD (Special Additional Duty of customs) surcharges and cesses are subsumed.
SGST – State Goods and Services Tax. This is charged in regard to the supply of goods and services, and it includes taxes on State Sales, VAT, Luxury, Entertainment (local bodies are charged if notified), lottery, betting, and gambling, as well as entry-level taxes (not in place of Octroi, State Cesses, and Surcharges).
IGST – Integrated Goods and Services Tax. This is for goods and services that are moved from one state to another.
What is the purpose of GST?
This is to replace all the unidentified and indirect taxes charged by the government and it is implemented.
Why do we need GST?
To simplify indirect tax systems and ‘one country-one tax’. The number of indirect service taxes has been reduced, and their rates differ. Sure, there will be problems in the acceptance and rejection of any new rule or norm passed in a largely populated country like India or China.
Is GST good for the Present Indian Economy?
Any new rule passed needs time to revert to the normal state and be accepted by the public. Yes! Definitely, it will yield excellent results. The policies have a significant effect. The cost of indigenous products is reduced, production and sales efficiency are increased, business operations are simplified, tax compliance is facilitated, transportation is made easier, and significant opportunities for employment are created.
But will GST pave the way for a better economy?
Yes, in the industry sector:
- Direct tax is collected
- Cascading tax effect is not seen
- The tax market is single
- The regime created on Tax is understandable and straightforward.
- Smaller units have the option to choose a composition scheme.
- Tax filing and payment are available online.
- Logistics have become efficient.
For Government:
- Encouraging the Make in India campaign and investments from foreign nationals.
- Export and manufacturing activities are encouraged.
- Starting a business or taking over an existing one has become easier.
- Tax Evasion has drastically reduced.
- Administering a firm is simple and made easier.
- The Government has shown an increase in profit.
How will GST work?
How to calculate GST?
When GST is Rs. 1,000 and the estimated slab is 18% GST, then 1,000+ 1,000 X (18/100) 1,000 + 180 = Rs. 1,180.
How can this GST be calculated on MRP?
The Maximum Retail Price (MRP) is the highest amount that can be charged by the seller to the buyer. This includes GST also. So, GST cannot be charged over MRP. The net amount, including tax, must be printed over the product.
What is the GST tally?
A combination of Tally and GST (accounting software) is GST Tally. Tally. ERP 9 generates GST calculations and transactions according to the GST format.
What is the GST on gold?
The GST tax rate on gold is 3%, making it an expensive commodity to purchase.
Is it compulsory to pay GST?
The GST regime is for business people whose turnover exceeds Rs. 40 Lakhs, who are typically taxable persons. It is compulsory to register for GST online for a specific business.
What are the goods that are included in GST?
- Small cars, Durable Items like air conditioners and Refrigerators, premium vehicles, cigarettes, aerated drinks, and High-end motorcycles are subject to a 28% GST.
- Hair oil, toothpaste, and soaps, capital goods, and industrial intermediaries are levied at 18% GST.
- Computers and processed food are subject to a 12% GST.
- Household necessities, including edible oil, sugar, spices, tea, and coffee (excluding instant), are included. Coal, Mishti/Mithai (Indian Sweets), and Life-saving drugs are subject to 5% GST.
Is there a need for the physical presence required for Private Limited Company incorporation?
No, as the process is entirely online, the candidate is not required to be present in person.
What do you mean by the Start-Up India initiative?
Prime Minister Narendra Modi proposed a program known as Start-Up India on India’s 69th Independence Day. This program aims to encourage entrepreneurship nationwide. On January 16, 2016, the Government of India launched the Start-Up India program to motivate the young spirit in the Country. This plan outlines the Start-Up Action Plan, which revolutionizes the consumer industry through its excellent and innovative ideas, promoting the government’s Make in India policy.
Can foreigners register and become the owners of an Indian-registered company?
Yes, foreigners can register as owners of Indian companies. However, there must be at least one additional Indian to launch a company.
What is an Authorized Capital? What is the minimum authorized capital for registering my company?
The highest end limit of the capital given to a Company that can issue shares and collect money from its shareholders is said to be Authorized Capital or Registered Capital. The authorized capital is approved through the resolution given in a meeting of the shareholders.
The least Authorized Capital of a Private Limited Company required is Rs. 1 lakh, for which the Ministry of Corporate Affairs charges Rs 5,000/- as a fee for allotting this minimum authorized capital.
What is the Company Law Act of 2013?
Indian Parliament consolidates and amends the following through the Company Law Act of 2013
- A minimal amount of capital is required to start a private limited company in India.
- The need for the Commencement of Business Certificate post registration is canceled in the new Act.
- The standard stamp is currently optional, and acceptance of the signatures of the Directors is of great importance.
- Currently, there are strict penalties for Companies that accept or welcome stores from the Public without obtaining approval from regulatory authorities.
- The Holding Company can provide loans or guarantees to the subsidiary Company.
- A company having losses or negative reserves cannot declare dividends.
- Board Resolutions will be confidential starting now.
Mergers and Acquisitions are possible only for?
This is the approach for strategic management, which involves combining two firms or individual companies. The desired synergy, whether achieved or not, is the ultimate goal of mergers and acquisitions. The primary goal of mergers and acquisitions is to generate synergy.
What are the requirements of a private limited company?
Members: it can be two to two hundred
Director: Two initially must possess a DIN number, and one among the two must be a resident of India and should have stayed in India for a minimum of 182 days in the previous calendar year.
Name: The name is segmented into three parts, comprising a name, the function, and the designation ‘Private Limited Company’. The company must suggest 4 to 5 names to the registrar, and it will choose one among those, as it is unique and attractive. As it will stay with the company till the end.
Registered company address: This is a requirement for the company to operate successfully. Before company registration, it is a mandatory procedure that needs to be followed.
Digital signature acquisition: It is mandatory to obtain the director’s digital signature, rather than requiring regular visits to sign every paper. Instead, it is a rule to attach a digital signature on every page of the online documentation to confirm the verification process.
Professional Certificate: it is necessary as incorporating it is very important.
What are the characteristics of a private limited company?
Limited liability: Each director and shareholder will be held personally liable for any losses incurred by the company. This means that when the loss is minimal or maximum, the shareholders are also required to compensate for the loss by selling or pledging their assets.
Perpetual Succession: the company exists at any point in the eyes of the law, regardless of death, insolvency, bankruptcy, or anything.
Index of members: There is no requirement for a central index of the company in the private sector, whereas in the public sector, it must be maintained.
Number of directors: it can start with two
Paid initial capital: a minimum of 1 lakh rupees or more is essential and can be increased from time to time.
Prospectus: A detailed prospectus is essential to starting a company
Subscription: No subscription is required to receive shares in a private limited company.
Name: unique, mandatory to use the following naming, must abide by the terms and conditions
What is meant by a Private Limited Company?
It is a type of privately held small business entity in which the owners’ liability is limited to their share of the business. The firm is limited to having 50 or fewer shareholders, and shares are prohibited from being publicly traded. When it incorporates a legal structure, the company becomes a separate entity.
What is a DPIN?
Designated Partner Identification Number, DPIN. Helps to find the selected partner in a limited liability Partnership. It equates to the DIN of both private and public limited company directors. The Ministry of Corporate Affairs issues DPIN and DIN.
What is the difference between other sectors and OPC?
- Pre-Incorporation expenses
- Liability
- Taxation Aspects
- Future Aspects
- Flexibility
- Need for a Loan
- Perpetuity
These are the positive features when compared to all other firms. But more than these, a Sole Proprietorship is better as it requires less investment and compliance at the start.
What are the minimum and maximum number of members allowed in a Private Limited Company?
- Minimum – Two Directors and Two Members
- Maximum- Fifty
- Shares form the total company, and every shareholder is a partner.
What is OPC?
The concept of One Person Company is the new vehicle for doing business introduced by the Companies Act of 2013. The old Companies Act of 1956 required at least two directors and shareholders to form a private limited company. Only one person will serve as both the Director and a shareholder. This can be converted to a Private Limited Company at any time.
How to obtain a DIN?
Second step: Complete and submit the application, along with the required documents, to the specified address, and provide the necessary identity proof.
Third step: verification by the Ministry
Fourth step: Obtain the allotted DIN number.
What is DIN?
A Director’s Identification Number, called DIN, is the identification number issued to a Director or a prospective Director of a firm through the Ministry of Corporate Affairs and is managed by the Government of India. This was first categorized under sections 266A and 266G, which were included in the Companies Act.
What are the different classes of DSC?
Class-1 DSC: This class of DSCs is issued to private subscribers and individuals to help them in securing their email communications and authentication of their identity.
Class-2 DSC: These DSCs are issued to company directors and other signatory authorities of a company/firm/organization.
Class-3 DSC: This class of DSC is valid for participation in e-Tenders and e-Auctions, conducted anywhere in the entire India.
These are the three different stages of DSC that is worthwhile and beneficial in unavoidable circumstances.
What is DSC?
The digital equivalence of physical papers or certificates is a DSC, Digital Signature Certificate. An electronic signature from the concerned department is required to file the form. A major requirement for a private company.
What is an AOA?
Incorporation with the company registrar through the submission of the necessary documentation. When AOA is in conjunction, it is referred to as the company’s constitution.
What is MOA?
MOA is the short form of Memorandum of Association, which reveals the company’s name, registered office address, aims, objectives, limited liability-related clauses, paid-up capital, and the share capital of the firm. It is the relationship of the company with the external universe.
What are the different types of company registration?
- Private Limited Company
- Public Limited Company
- Limited Liability Company
- Unlimited Liability Company
- Non-Profit Organizations / Sec.. 25 companies
