All people and businesses selling goods or services in India must register for GST. When the total value of a supply reaches Rs.20 lakh, GST registration is required. To make tax reporting easier, the Ministry of Finance (MoF) streamlined the GST registration process. If the worth of the business reaches Rs.10 lakh per year in a special category state, GST registration is required. Let’s take a look at who qualifies for GST registration in this post.
Let’s move on and discuss the steps in detail.
How to register your business? Step by step Guide
Step 1: Incorporate your Business
You must first form a Private Limited Liability Company, a Partnership Firm, or a Personal Assets Partnership to start your business. You must follow all of the standard steps for registering a business, including acquiring a Certificate of Incorporation or Partnership Registration, a PAN, and other legal requirements.
Step 2: Register with Startup India
The company must then be established as a startup. The entire procedure is easy and may be completed online. All you have to do is go to the Startup India website and fill out a form with information about your company. Next, input the OTP that was provided to your email address, as well as additional information such as the startup as the kind of user, the name and stage of the company, and so on. The Startup India profile is generated when this information is entered.
Startups may apply for different acceleration, incubator or mentorship programs, and other competitions on the website after creating a profile, as well as get access to the resources like the Training and Development Program, Fiscal Incentives, State Policies for Startups, and pro-bono activities.
Step 3: Get DPIIT Recognition
The Department for Industrial policy And promotion Trade (DPIIT) Recognition is the next stage after setting up an account on the Startup India website. This recognition allows startups to take advantage of benefits such as access to the highest property rights facilities and benefits, the tranquility of public procurement rules, self-certification under labor and environmental laws, ease of company getting stuck, connect directly to Fund of Funds, tax exemption for three years, and a tax break on investments above fair market value.
Step 4: Recognition Application
The page titled “Recognition Application Detail” appears. On this screen, go to the Registration Details tab and tap on ‘View Details.’ Fill out the ‘Startup Recognition Form’ and hit the ‘Submit’ button.
Step 5: Documents for Registration
- Incorporation or Registration Certificate
- Details of the Directors
- Proof of concept like a pitch deck
- Traction or scaling stage startup
- Patent and trademark details
- PAN Number
Step 6: Recognition Number
That concludes our discussion. As long as you register, you will be assigned an identification number for your business. The certification of recognition will be provided when all of your documents have been examined, which generally takes two days after you input your information online.
However, use caution when submitting documents. If it is discovered after further verification that the needed document was not submitted, the incorrect document was posted, or a fraudulent document was uploaded, you will be fined 50% of the startup’s terms of investment, with a minimum punishment of Rs. 25,000.
Step 7: Other Areas
Patents, trademarks and/or design registration: You may readily approach any of the government-issued facilitators if you require a patent for your invention or a trademark for your firm. You will only be responsible for the statutory fees, resulting in a charge savings of 80%.
Funding: Access to capital has been one of the most difficult issues for many companies. Entrepreneurs are unable to attract investors leading to a shortage of experience, security, or current cash flows. Additionally, many financiers are put off by the high-risk nature of startups, which fail to take off in significant numbers.
Work and Labor Laws Self-Certification: Startups can decrease their compliance expenses by self-certifying under labor and environmental regulations. Businesses can use self-certification to reduce their regulatory burden and emphasize the main business. Startups have three to five years after the date of formation to self-certify their compliance with six labor regulations and three environmental statutes.
Tax Exemption: For the first three years, startups are tax-free. However, they must be recognized by the Inter-Ministerial Platform in order to get these benefits (IMB). Startups that were formed on or after April 1, 2016, are eligible for an income tax exemption.
How to generate a GST number?
- GST registration can be done at a local GST Seva Kendra or online through the GST Portal.
- Go to the GST official website and choose the ‘Services’ option.
- Tap on ‘New Registration’ after hovering over the ‘Registration’ button.
- ‘I am a’ appears in the drop-down option. select a taxpayer
- Then, choose your business’s region and district. Then input the company name, PAN number, phone number, and email address.
- An OTP will be sent to your registered phone number and email address. Enter the OTP and double-check the data.
- Select ‘Proceed’ from the drop-down menu. You will be issued a Temporary Reference Number and directed to the next step in the registration process, Part B.
- Make a mental note of the Temporary Reference Number. Then check in with this number and the verification code on the New Registration homepage. Click the ‘Proceed’ button.
- Additional OTP will be sent to your email address and registered cellphone number. Select ‘Proceed’ after entering this OTP.
- Your registration status is visible on the next page. Select the ‘Edit’ icon.
- The next page will be divided into ten sections. Complete the blanks. You must submit the following documents: business address proof, photos, the authorization form, bank account details, IFSC code, bank name and location, and the taxpayer’s constitutional.
- Go over to the ‘Verification’ page after that. Make a declaration in the statement box. For firms that wish to register, you can use an EVC (Electronic Verification Code), an E-Sign technique, or a DSC (Digital Signature Certificate) to submit the form.
- You will notice a success message saying once you have completed these steps. Your ARN will be delivered to your email address and cell phone number.
- By entering onto the GST site with your ARN number, you may check its status.
The GST number is highly important for any firm since it appears on all invoices. If you already own a business, you’ll be familiar with the concept of an input tax credit. You’ll be able to legally register your business, which will boost your reputation. You may get the certificate of registration after signing on the official portal.