Startups require a great deal of research, hardwork and dedication to take off and become a success. The sleepless anxious nights, the Goosebumps that one experiences while starting a new business is both normal and necessary as this makes sure that we are well prepared before meeting the first client or accepting the first order. The most important thing that one needs to focus on while starting a startup is the ‘finances- giving your business a legal existence’.

Planning, strategizing and achieving your sales target are all good signs for a startup but all these go in vain if your finances are not well managed.  One should always remember to register his/her startup along with the excitement and enthusiasm of starting a new business. Registering your startup is very important as it will come as your savior and protects you in uneven cases like financial losses or if someone sues your company. Registering your startup will safeguard your company and help you in getting capital.

We at IndianWeb2 give you a quick overview of all the guidelines that one needs to follow while opening a startup. The guidelines are as follows:

1) Open a Current Account with a Bank

Basic Documents required are:

  • Proof of Identity: Passport/ PAN Card/ Driving license/ Voter ID card

  • Proof of Address: Latest Electricity Bill or Telephone Bill

2) Obtain PAN Number

One should obtain a PAN number from the Income Tax Department. A Permanent Account Number is a ten digit alphanumeric number in the form of a laminated card which is issued by the Income Tax Department of India.

3) Register Your Company (Private Limited Company/ Pvt. Ltd.)

4) Register a Limited Liability Partnership (LLP)

The LLP is an alternative corporate business vehicle that provides limited labiality to its members but allows them the flexibility of organizing their internal structure as a partnership based on a mutual arrived agreement.

5) Register for Value Added TAX (VAT)/ Sales Tax

VAT is a multipoint destination based system of taxation. The tax is levied on value addition at each stage of transaction in the distribution/ production stage. The State Governments collets this tax in their respective states.

6) Register for Service Tax

Service tax means a tax on services provided by the startup. It is a tax levied on the transaction of certain services specified under the Finance Act of 1994 by the Central Government.

7) Employee's Provident Fund (PF)

This is applicable for startups having twenty or more persons and engaged in an industry notified under section 6 of the Act.

8) Apply for TAN

All those who are required to collect or deduct tax at source on behalf of the Income Tax Department are required to have a TAN.

Follow these 8 checklist above and you can comfortably finish these process in around 30 days in country like India and you don't have to be a finance expert to all these things just follow the steps required for documentations and you are done.

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