How to start a retail business

Registering your retail business as a company is a big step, but it can provide many benefits, such as limited liability, perpetual succession, and the ability to raise capital from investors. If you are considering registering your retail business as a company, here is a blog post that will walk you through the process:

Step 1: Choose a type of company

The two most common types of companies for retail businesses are private limited companies (Ltds) and public limited companies (Plcs). Ltds are privately held companies with a limited number of shareholders, and they are not required to file their accounts with the public. Plcs are open to the public to invest in, and they are required to file their accounts with the public.

Step 2: Choose a name for your company

The name of your company must be unique and must not be the same as the name of any other company registered in India. You can check the availability of a company name on the Ministry of Corporate Affairs (MCA) website.

Step 3: Apply for a DIN for the directors of the company

A Director Identification Number (DIN) is a unique number that is assigned to each director of a company. To apply for a DIN, you can use the Form INC-9 available on the MCA website.

Step 4: Draft the Memorandum of Association (MOA) and Articles of Association (AOA) of the company

The MOA is a legal document that sets out the constitution of the company, including its name, objects, and authorized capital. The AOA is a legal document that sets out the internal rules and regulations of the company. You can draft the MOA and AOA yourself or you can use a template available online.

Step 5: File for incorporation of the company

Form INC-29 is used to file for incorporation of the company. You can file Form INC-29 online or in person at the MCA office.

Step 6: Pay the registration fee

The amount of the registration fee will depend on the type of company you are registering and the authorized capital of the company. You can pay the registration fee online or by demand draft.

Step 7: Receive the Certificate of Incorporation (COI)

Once the MCA has processed your application, it will issue a COI to you. The COI is a legal document that confirms the incorporation of your company.

Step 8: Apply for a GST registration

Goods and Services Tax (GST) registration is required for all businesses with a turnover of more than INR 20 lakh annually. You can apply for GST registration online on the GST portal.

Step 9: Apply for other necessary licenses and permits

The specific licenses and permits required will depend on the type of retail business you are operating and the location of your business. You can contact the local authorities to find out which licenses and permits are required.

Conclusion

Registering your retail business as a company can be a complex process, but it is important to follow the steps carefully to ensure that your company is registered correctly. If you need assistance with company registration, you can consult with a lawyer or a chartered accountant.

Here are some additional tips for registering your retail business as a company:

  • Choose a name for your company that is easy to remember and pronounce.
  • Make sure that the MOA and AOA of your company are drafted correctly.
  • File for incorporation of your company as soon as possible.
  • Pay the registration fee on time.
  • Apply for a GST registration as soon as possible.
  • Obtain all of the necessary licenses and permits before you start operating your business.
  • I hope this blog post has been helpful. If you have any questions, please leave a comment below. 

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