The document discusses various types of business entity formations in India including sole proprietorship, partnership, limited liability partnership, private limited company, and one person company. It outlines the number of people required, liability, ease of formation, approximate costs, and time taken for each. The document also covers tax implications, necessary registrations like PAN, TDS, VAT, service tax, IEC, trademarks, and opening a current account. Payment gateways and popular options in India are defined. Contact information is provided at the end for queries.

1. STARTUP'S INCORPORATION &
REGISTRATIONS KNOW HOW
W2E – 28TH JUNE 2014
CA Gaurav Mittal
Partner, Singal And Company

2. TYPES OF INCORPORATION
Setup
-
-
TypesOf
Formation
No Of Person
Required
Liability
EaseOf
Costing
Approx
Time Taken
Fund Raising
& Selling
Sole
Proprietorship
Only1
Unlimited
Easy
Low Cost
5000/ -
2 3 Days
Limited
Opportunity
Partnership
Minimum 2
Unlimited
Easy
Low Cost
4000/ -
1 Week
Limited
Opportunity
Limited
Liability
Partnership
Minimum2
Limited
Medium
MediumCost
12000/ -
20 Days
Limited
Opportunity
Private
Limited
Company
Minimum 2
Limited
High
High Cost
18000/ -
1 Month
EasyTo
Transfer &
Raise Funds
One Person
Company
Only1
Limited
High
High Cost
14000/
1 Month
Easy To
Transfer &
Raise Funds

3. TAX IMPLICATIONS
TypesOf
Formation
Claiming of
Expenditure
Minimum
Alternate
Tax
Rate Of Tax
Sole
Proprietorship
Allowed
Not
Applicable
Individual
Slab rate
Partnership
Allowed
Not
Applicable
Flat Rate
30%
Limited
Liability
Partnership
Allowed
Not
Applicable
Flat Rate
30%
Private
Limited
Company
Allowed
Applicable
Flat Rate
30%
One Person
Company
Allowed
Applicable
Flat Rate
30%

4. REGISTRATIONS
- PAN NUMBER
- TDS
- VAT
- SERVICE TAX
- IEC
- TRADE MARK
- CURRENT ACCOUNT

5. PAN NUMBER
 Who Should Apply :-
A statutory requirement for filing return and Act as an ID.
 Any Exemption Limit :-
No Exemption.
 Time & Cost
15 Days & Rs 500.
 Penalty
Rs 10000.
 Documents
ID Proof, 2 Photographs, DOB Proof, Address Proof, IC
 Form
Form No 49A, Online Available, Submission at NSDL
Centres.
 Website & Phone No
www.tin-nsdl.co.in, 18001801961

6. TAN Number For TDS
 Who Should Apply :-
If you are making any payments for which TDS is to be deducted like
Salary, Interest, Commission Etc
 Any Exemption Limit :-
No Exemption but for Proprietorship Rs 1 Cr
 Time & Cost
15 - 20 Days & Rs 1000.
 Penalty
Rs 10000.
 Documents
Copy of PAN Card
 Form
Form No 49B, Online Available, Submission at NSDL Centres.
 Website & Phone No
www.tin-nsdl.co.in, 18001801961

7. TIN Number For VAT
 Who Should Apply :-
For Sale & Purchase of Goods.
 Any Exemption Limit :-
Rs 9 Lacs
 Time & Cost
7 to 10 days & Rs 8500/-
 Penalty
Max Rs 100000.
 Documents
PAN, Address & ID Proof, Aadhar Card, IC, Photographs
 Form
Form DVAT 04, Online Available, Submission at Deptt At
ITO.

8. SERVICE TAX
 Who Should Apply :-
If you are providing any taxable service. .
 Any Exemption Limit :-
Rs 10 Lacs
 Time & Cost
2 to 3 days & Rs 3500/-
 Penalty
Max Rs 10000.
 Documents
PAN, Address & ID Proof, Aadhar Card, IC.
 Form
Form ST-1, Online Available.
Website & Phone No
www.aces.gov.in, 18004254251

9. IMPORT EXPORT CODE (IEC)
 Who Should Apply :-
For making Import & Export.
 Any Exemption Limit :-
NIL
 Time & Cost
1 Month & Rs 3500/-
 Penalty
NIL
 Documents
PAN, Address & ID Proof, Aadhar Card, IC, Bank Certificate
 Form
Form ANF-2A, Online Available.
 Website & Phone No
www.dgft.gov.in, 011-23378748

10. TRADE MARK
 Who Should Apply :-
For Registering Logo or Name
 Any Exemption Limit :-
NA
 Time & Cost
Min. 2 Years & Rs 10,000/-
 Penalty
Only in case of Litigation
 Documents
PAN, Address & ID Proof, Name or Logo
 Form
Form TM-1, Online Available.
Website & Phone No
www.ipindia.nic.in, 011-28034304

11. CURRENT ACCOUNT
OPENING A CURRENT ACCOUNT IN CASE OF
PROPRIETORSHIP
 PAN Card Of Proprietor.
 Address Proof Of Proprietor.
 Any one government registration certificate.
 Service Tax Registration.
 TIN Registration.

12. PAYMENT GATEWAY
 Meaning
 A payment gateway, in essence, is an e-commerce service
that processes, verifies and accepts or declines credit card
transactions on a merchant’s behalf through secure Internet
connections.
 Why do we need Payment Gateway
 In the online age when we are tracking our customers online
and all random people, a payment security is a must, also to
create a sense of security in the mind of buyer that his
confidential information is safe. A Payment gateway solves this
problem.
 How to choose a payment Gateway
 What is the service Cost ?
Whether available in your country ?
 Whether Merchant Account is Account ?
 Popular Payment Options in India
CC Avenue, Paypal, Pay U, Pay Zippy

13. For Queries & Further
Information
CA GAURAV MITTAL
Singal & Company
Chartered Accountants
WA-120A, Third Floor
Shakarpur
Delhi -92
Mail Us :- info@singalandcompany.com
gmittal@singalandcompany.com
Blog :- www.singalandcompany.wordpress.com
Website :- www.singalandcompany.com
Mobile :- 011-40532754, 9971312299