Bangalore, the booming IT hub offers a bright future for entrepreneurs. This article delves into the essential steps for aspiring entrepreneurs, offering insights into how to start a business in Bangalore.
The information provided in the article aims to give you a basic idea. Therefore, instead of blindly following the steps, it is advisable to conduct thorough research before starting any business.
Steps to Start a Business in Bangalore
Embarking on a business journey in Bangalore requires a strategic approach to navigate legal complexities. These crucial steps ensure a smooth and lawful establishment of your enterprise.
1. Approve Your Company Name
Begin by brainstorming a list of potential names for your business. Subsequently, check the availability of these names on the MCA official website. Upon approval, your chosen name will be officially registered.
2. Get Director Identification Number (DIN)
Initiate the process by filing an online application for provisional DIN. Once completed, print and send the filled and signed form along with necessary identification proof to the concerned ministry for approval. Upon approval, a permanent DIN will be issued.
3. Get the Digital Signature Certificate (DSC)
The company director must apply for the DSC along with identification proof through private agencies approved by the Ministry of Corporate Affairs.
4. Stamp the Papers of Your Start-up or Business
Before proceeding with incorporation, it is imperative to stamp the documents for your company. Failure to do so may complicate the registration process. Follow these steps:
- Provide an unsigned copy of your Memorandum of Association (MOA) and Article of Association (AOA).
- Submit the required payment with your application.
- Obtain duly stamped and signed copies from the superintendent.
5. Get the Certificate of Incorporation
To obtain the certificate of incorporation, fill out necessary forms such as Form-32, Form-28, and Form-1. Ensure submission of scanned copies of directors’ consent, along with signed and stamped MOA and AOA.
Forward these documents to the company’s registrar along with a copy of the power of attorney and name approval letter to receive the certificate via registered mail.
6. Make a Seal for Your Business
Regardless of the business type, acquiring a seal is essential for issuing certifications to employees or interns. The cost of the seal depends on factors like delivery time, the number of words, and quantity needed.
7. Get a Permanent Account Number (PAN)
Apply for PAN through Form 49 A, either online or offline. Physical documents may need to be sent for verification even for online applications. Once approved, a printed PAN card will be issued.
8. Get a Tax Account Number (TAN)
Complete Form 49B to apply for TAN. Submit it at the Tax Identification Number Facilitation Centre, and after verification, it will be forwarded to the income tax department.
9. Register Your Business with the Office of Inspector and Shops and Establishment Act
Provide a statement to the local shop inspector containing employee and manager names, establishment details, and postal address. Register your establishment within 30 days to comply with regulations.
10. Register for GST
If your business anticipates an annual turnover of 20 lakhs or more, register for GST. Refer to the official GST website for the latest procedures.
11. Register for Professional Tax
Every business must register for professional tax under section 5 of the Professional Tax Act. Fill Form 1 and obtain a certificate of registration from the professional tax office.
12. Register with Employees’ Provident Fund Organisation
As a national requirement, register with EPFO in the prescribed manner to receive an establishment code number.
13. Register for Medical Insurance for Your Employee
Prioritize employee well-being by registering for medical insurance. Submit Form 1 for registration according to the Employees’ State Insurance scheme. After registration, your business will be assigned an employee code number for insurance.
How Much Does It Cost to Start a Business in Bangalore?
The cost of starting a business in Bangalore varies based on factors like industry, scale, and regulatory requirements. Expenses include legal registrations, office setup, and operational costs.
By registering on Startup India, entrepreneurs can explore financial assistance opportunities provided by the government. Entrepreneurs need to carefully plan and budget for a successful launch in this dynamic business environment.
Types of Businesses to Start in Bangalore
- Tech Startups
- Biotech Ventures
- E-commerce Platforms
- Real Estate Development
- Fine Dining Restaurants
- Manufacturing Automation Solutions
- Artificial Intelligence Consulting Firm
- Renewable Energy Project Development
Read More: The 50 Best Business Ideas in Bangalore
Conclusion of How to Start a Business in Bangalore
Whether launching an online or offline business, adherence to these legal steps is crucial for a successful business initiation in Bangalore. Understanding how to start a business in Bangalore and meticulously applying the necessary steps can unlock boundless opportunities in this thriving city.