In a country like India which was a closed economy till the year 1991 is now opening up. It is now emerging as the greatest place for Foreign direct Investment.
Talking about the importance of Business in present Scenario, it has grown to the great extent. With India responding to the call given by our Prime Minister, “Aatmanirbhar Bharat” is the new milestone to be achieved. This can be achieved only through developing ideas and these ideas can expand in the face of Business. Thus, in this phase of pandemic when horizon of the world is shifting towards India, we need to focus on the development of Indian businesses.
In India, a large number of the Industries and Businesses set up come under the Micro, Small and Medium Enterprises as prescribed by the Micro, Small and Medium Enterprises act, 2006.
These industries are at present serving an important variable for sustaining our Economy. For these Industries to sustain and various new businesses to come up, a method has to be prescribed. The uniformity in method will help more individuals to come up and set up a business.
There have been various initiatives during the present Governance era to promote businesses at various fronts like a scheme called Pradhan Mantri Mudra Loan. The Government has tried to promote business to make people able to sustain themselves. In the present situation when our economy is heading towards a negative stage and unemployment soaring high, business is the new ideal situation to realise the potential.
Moreover, Startups are the new business models in the society. To start with these starts ups we need to follow a properly labelled procedure. The steps are as followed:
• Business Registration and Company Name Availability– The first and foremost thing is to check upon the availability of the name of the Company. The name of the Company must be unique to avoid confusions further.
There are various type of Company structures and they need to be classified into different types according to the Companies act, 2013. They can be classified as Private Limited Company, Public Limited Company, one Person Company, Limited Liability Partnership, Sole Proprietorship, Nidhi Company etc. The business gets divided in the type of the company based on the scale of its operation, capital invested, number of the members associated with the business etc.
• Startup India Registration – If the Business comes under the definition of a startup as per the DIPP Notification, it can get its Startup India Registration done. The Registration of a company gives it the unique status and gives it a legal status.
• Acquiring a Director Identification Number– The Directors of the Company are required to the get a unique Identification Number. The DIN is approved and granted after verification of the documents of the company.
• Acquiring a Digital Signature Certificate– In the modern Era, digital technology has become the forte of the present world operations. In such phase, the digital Signatures are of great importance. These Signatures are even recognised by the Information Technology Act, 2010.
• GST Registration– The GST Registration is required nowadays to file for GST returns. The new business must be registered within 30 days of its openings, otherwise the company will be subjected to heavy penalties.
• Obtaining an Incorporation Certificate– The Incorporation Certificate is provided by the Ministry of Corporate Affairs and stands as the validation for the Constitution of the Company.
•Udyog Aadhar Registration– It is the new initiative if the Government to support small-scale businesses. It is an alternative to the MSME registration. After getting Udyog Aadhar Registration the company becomes entitled to the subsidies and benefits provided to the company by the Government.
• Licenses for Startup– The Licenses are given to the startups pertaining to special subjects like food business, financial institutions, shops and establishments etc.Every State has its own Laws and rules which provide for how to establish and run a shop. A business that comes under the category of Shop and establishment must get this License to prevent itself from suffering huge financial loses.
• Import Export Code Registration– This comes only in paly when the business is concerned with importing and exporting goods. To start such business, we need IE code. Bankers would require the person carrying such business to get IEC registration. To obtain such code, PAN card and a current account in a bank is a necessary thing.
• Creating a Company Seal for official Documentation– A company seal is required to be placed on papers for sharing certificates and other official documents. It is not mandatory for Private Companies to access such seal.
• Obtaining a Certificate from the State/Municipal Authorities– The Certificate must be obtained within 30 days of the opening up of the shop or an establishment.
All such steps are required to initiate and sustain a business. The actual performance and realisation of these steps ensure no disturbance from the local or state authorities.