Various Initial Registrations and Licenses

PAN

A permanent account number (in short called as PAN) is a vital document for
any taxpayer. It is a 10-character alphanumeric number consisting of letter
and digits. This number is unique to each cardholder and helps identify the
income tax payer. It is required for individuals, partnerships and companies.
Given below is a list of the bodies that are required to hold
a PAN card in India.
Body Corporate
Companies
Firms other than LLP
One Person Company
LLP Firm
Sole proprietorship
Trusts
Corporations
Limited Liability companies
Private firms
Other Associations
Foreign Institutional Investors
Hedge funds
Significance of PAN for Setting up of Business

 It was made mandatory by the Government of India under the Income Tax
Act, 1961.
 In the absence of the PAN, the Government will charge withholding tax
which can be at the rate of more than 30% of the total invoiced payment.
 Income Tax Department to track the financial transactions.
 Even if one is not required to pay income tax, it is mandatory for him to
hold a PAN if he is earning money.
Application and Registration of PAN

 Earlier, to apply for a PAN, an individual had to fill up physical forms specified by
the income tax department (i.e., form 49A for resident individual).
 In the present times, the application for allotment of PAN can be made through
internet.
 Further, requests for changes or correction in PAN data or request for reprint of
PAN card (for an existing PAN) may also be made through internet.
 Online application can be made either through the portal of NSDL
(https://tin.tin.nsdl.com/pan/index.html) or the online portal of UTITSL.
 For dispatch outside India has changed to 1020/- INR. However,
PAN application fees for dispatch within India is 110/- INR.
 Once the application and payment is accepted, the applicant is
required to send the supporting documents through courier/post
to NSDL/UTITSL.
 Only after the receipt of the documents, pan application would
be processed by NSDL/UTITSL.
TAN

TAN or Tax Deduction and Collection Account Number is again a 10 digit

alphanumeric number required to be obtained by all persons who are
responsible for deducting or collecting tax. Under Section 203A of the
Income Tax Act, 1961, it is mandatory to quote Tax Deduction and
Collection Account Number (TAN) allotted by the Income Tax Department
(ITD) on all TDS returns. It is a unique 10 digit alphanumeric code.
Types of TAN Applications

There are two types of TAN applications:

Application for issuance of new TAN (Form 49B).
Application for Change or Correction in TAN data for TAN
Allotted.
Procedure to Apply

A deductor may either make an online application through

this website or submit physical TAN Application to any TIN-
Facilitation Center (TIN-FC) of NSDL.
Status track

The applicants may track the status of their TAN

application using 14 digit unique. Acknowledgment
Number after three days of application using the status
track facility.
Fee

The processing fee for both the applications (new TAN and
change request) is 65/- INR.
Registration of Shops & Establishments
The specific rules are:
1. Submit an application in the prescribed form to the Inspector of the area
within 30 days of starting any work in your shop/establishment. The
application is to be submitted along with the prescribed fees and should
contain the following information:
a. Your name as the employer and the name of a manager, if any;
b. The postal address of your establishment;
c. The name of your establishment;
d. Such other particulars as may be prescribed.
2. The Inspector shall verify the accuracy and correctness of the
application. This certificate will be valid for 5 years and has to be
renewed thereafter.
Communication of Change to the Inspector

The same has to be notified to the Inspector’s office

within 15 days after the change has taken place.
Closing of Establishment to be communicated to Inspector

The occupier should notify the Chief Inspector in writing

within fifteen days of the closing.
SSI/MSME

As part of the COVID-19 relief package named ‘Atmanirbhar Bharat’ the

definition of MSMEs was changed.
Micro Units: Those with investments upto Rs 1 crore and turnover to of less
than Rs 5 crore.
Small Units: Those with investments upto Rs 10 crore and turnover to of less
than Rs 50 crore.
Medium Units: Those with investments upto Rs 20 crore and turnover to of
less than Rs 100 crore.
UDYAM Registration Procedure

The Udyam registration for MSMEs can be performed completely

online with just Aadhaar. No offline or online agency, institution
or consultancy is authorised to charge any fee for this
registration. Having PAN & GST number is mandatory from 1
April 2021.
Eligibility apply for Udyog Aadhar/MSME registration

MSME registration or Udyog Aadhaar can be obtained by any type

of business entity, namely, Proprietorships, Hindu Undivided
Family, Partnership Firm, One Person Company, Limited Liability
Partnership, Private Limited Company, Limited Company, Producer
Company, any association of persons, co-operative societies or any
other undertaking.
Micro and Small Enterprises:

1. Easy finance availability from Banks, without collateral requirement

2. Assured payment within 45 days and protection against delay in payment
from Buyers and right of
interest on delayed payment
3. Preference in procuring Government tenders,
4. Stamp duty and Octroi benefits,
5. Concession in electricity bills
6. Excise Exemption Scheme
7. Exemption under Direct Tax Laws
8. Free of cost government tenders
9. Waiver in Earnest Money (Security Deposit) in
Government tenders.
Medium Enterprises:
1. Easy finance availability from Banks, without collateral
requirement
2. Preference in procuring Government tenders
3. Reservation policies to manufacturing / production sector
enterprises
4. Time-bound resolution of disputes with Buyers
Validity Period of G. P. Registration (Government Store
Purchase Registration)

G. P. Registration is valid for Two Years.

Documents to be submitted by the Micro & Small Enterprises
at the Time of Fresh Registration

1. A copy of Acknowledgement of Entrepreneurs Memorandum Part-II;/UAM (Udyog

Aadhaar
Memorandum).
2. Details of Plant & Machinery and Raw Material clearly showing date of purchase &
original purchase value.
3. Self-attested copy of ownership documents of the premises or copy of lease deed.
4. Declaration/Certificate from the Proprietor/Partner/Director whether or not they have any
link with large scale unit(s).
5. Two copies of each of Declarations duly signed by the authorized
person of the applicant SSI Unit accepting conditions of
registration.
6. List of places where after-sales service facilities (if applicable) are
available.
7. List of technical personnel employed in production and services.
8. Latest Electricity Bill Copy.
9. Audited Balance Sheet, Trading Account and Profit & Loss.
10. Account for the last 3 years duly signed by the authorized
person under his seal.
Documentary Proof of the Status of the firm

Additional documents to be submitted in case of Partnership

Concern
 General Power of Attorney in favour of one of the Partners.
 Partnership Deed.
 Form A from Registrar of Firms showing the names of the
partners.
Additional documents to be submitted in case of Pvt./
Limited Companies-
 Certificate of Incorporation duly authenticated.
 Memorandum and Articles of Association duly
authenticated
 Names of sitting Directors, their addresses and their
shareholdings.
Documents Required for Renewal of the Registration

1. Original GP Registration Certificate.

2. A copy of Acknowledgement of Entrepreneurs Memorandum Part-
II/UAM;
3. List of major Govt. Orders executed during last 2 years on letter head
as per format of Annexure ‘G’.
4. Copies of Audited Balance sheet for last 3 years duly signed by the
authorized person under his seal.
FCRA Registration

Such a registration under the Foreign Contribution

Regulation Act, 2010.
Eligibility for obtaining FCRA Registration

Organizations seeking foreign contributions for definite cultural, social, economic,

educational or religious programmes may obtain FCRA registration or receive foreign
contribution through “prior permission” route. It is preferable for an FCRA applicant
to be a Trust or Society or a Section 8 Company. The not-for-profit entity must have
also been in existence for a minimum of five years while making the FCRA
application. Additionally, the entity seeking registration should have spent at least
Rs.10,00,000/- over the last three years on its aims and objects.
Criteria for grant of FCRA Registration

(a)The ‘person’ or ‘entity’ making an application for registration or grant of

prior permission-
 Is not fictitious or benami;
 Has not been prosecuted or convicted for indulging in activities aimed at
conversion through inducement or force from one religious faith to
another.
 Has not been prosecuted or convicted for creating communal tension or
disharmony.
 Has not been found guilty of diversion or mis-utilisation of its funds;
(b) The acceptance of foreign contribution by the entity /
person is not likely to affect prejudicially-
 The sovereignty and integrity of India;
 The public interest;
 The security of the State;
 Friendly relation with any foreign State.
Applying for FCRA Registration

Application for FCRA registration can be made using

Form FC-3.