How to set up your company during Covid-19?

Setting up a company requires adherence of many legal formalities, company laws and government norms. It is imperative for the owner to completely follow all the obligations and norms while setting up a Company in India.

One is bound to face extra difficulties in the unprecedented situation of Covid-19. The pandemic has thrown everything out of gear. Many rules and norms have undergone change to ease the lives of people and make them sail easily in the rough waters of the pandemic.

As the Covid-19 virus situation calls for social distancing and stay at home, most of the things have gone online. Even the government has eased the situation by enabling filing of documents and uploading of forms online to curb the chain of the pandemic.

Here are few steps that have to be taken while setting up a Company in India during Covid times:
 

1. Checking the Company name availability: Before registering for the company, it is imperative to check whether the proposed name is available or not. This can be easily done online by checking the availability of the desired company names on the MCA 21 website easily without venturing out. Once approved, the selected company name appears on the website.
2. Acquiring a director identification number (DIN): DIN is a special identification number; that is provided to the potential directors of the company; that is incorporated. A provisional DIN can be obtained by filling DIN 1 application form online. Government will issue a permanent DIN after verifying all the documents and further approval of the request.
    
3. Acquiring digital signature: A digital signature is issued electronic key that certifies and identifies the holder of the certificate. Any approved agency registered with the Ministry can issue this certificate. The Company directors must submit an application form, identity proof and permanent address proof when applying for digital signature certificate. All the formalities can be done online.
    
4. Obtaining an incorporation certificate: Incorporate certificate is provided by the Ministry of Corporate Affairs and is used as proof for the constitution of the company. All the forms – e-form 32, e-form 1 and e-form 18 should be digitally filed by uploading them in the official Ministry of Company Affairs website. Along with the Form 1, registrar of companies must be provided with one copy each of Memorandum and Articles of Association, the director’s consent and a stamped copy establishing the power of attorney. The incorporation certificate again will be digitally and automatically sent to the e-mail ID of the applicant.
    
5. Creating a company seal for official documentation: A company seal is required to be fixed on papers for sharing official documents and certificates. The cost of acquiring the official seal is dependent on the number of words that need to be engraved on it, the number of seals issued and the time period for delivery of seals.
    
6. Stamping of all documents: The application to have incorporation documents of company should have unsigned copies of MOA and AOA attached along with the payment of receipt for same. Stamp duty will be paid online for such documents to the Registrar. The superintendent will return the copies; one is stamped, signed and embossed in official capacity.
    
7. Acquiring PAN and TAN: Next step is to obtain PAN and TAN online by filling the required forms and uploading the details. PAN application though done online, physical verification of the documents is required for final verification.
    
8. Obtaining certificate from State/municipal inspector under shops and establishment act: A statement including name of employer or manager, company’s name and permanent postal address and business category must be provided to state shop and establishment inspector.  This has to be done within 30 days of opening of company.
    
9. Applying GST: It is mandatory if your company is seeking to supply goods and services across states while maintaining annual aggregate turnover of more than 40 to 20 lacs.
    
10. Obtaining profession tax certificate from state profession tax office: A company should file Form 1 to the state profession tax office to apply for the profession tax certificate for every employer is liable to tax and thus should obtain certificate of registration from relevant authority.
     
11. Completing National EPF registration: Information of the worker is to be provided to local EPF organization by employer in a prescribed manner to get ECN code if the EPF and miscellaneous provisions act 1952 is applicable on company. Signed and embossed in official capacity.