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Entry Strategy for setting up business in Gujarat.

The state of Gujarat in India now has emerged out to be a very favorable destination for different businesses. Therefore, many big businesses are finding it very comfortable in working in a very wonderful business-friendly environment here. Apart from Ahmedabad and Surat, several other cities in Gujarat are also attracting a lot of businesses towards it.

Furthermore, the setting up of the business is easier for big and small businesses in Gujarat. It has a very fantastic fundamental infrastructure for running a smooth business here. The compliances that one need to do for setting business in Gujarat are also comparatively easier. Hence, it is making it simpler for most of the companies to set up the business here.

Let us look at some things to consider while setting up the business in Gujarat:

Regulatory requirements

The basic regulatory requirements for setting up the business in Gujarat is:

  • Trade license as per the limit of the Municipal Corporation. The trade license should also mention the type of business to do.
  • Mention the company whether it is sole proprietor, partnership, private limited, etc.
  • The Digital Signature Certificate (DSC) should be done to send the documents to the respective authority on the internet.
  • To get different benefits for the business in Gujarat, we should register for the Udyog Aadhaar or MSME registration. We can divide the companies into micro, small, and medium enterprises.

Compliances requirement

The compliance requirement for the companies in Gujarat varies from the company. However, the compliance is different for these types of businesses; Private limited company, Limited liability partnership (LLP), OPC registration, Public company, Nidhi Company, etc.

Entity requirements

  • Aadhar Card of the owner is one of the basic requirements of the owner. This is because, as an owner or CEO, they start a business in Gujarat.
  • The name of the company should also be clear in the document for registering a company here.

Tax Rate

The Tax structure in Gujarat is as per the kind of business. For individual professionals like engineers, doctors, architects, etc. the annual rate is Rs.2,000/-.

The private and public limited company need to pay an individual professional of a fix annual rate of Rs. 2,000/-. However, for the registered dealers as per Gujarat VAT Act, the tax rate varies as per their annual turnover.

RBI requirements

Reserve Bank of India has some strict guidelines for starting a business in Gujarat for specific businesses. Hence, we should follow all the instructions thoroughly in the businesses for running it in Gujarat.

Services required of adviser.

Meru Accounting provides all the important services for the individual advisers in providing different services. Their full-proof system works exactly as per the business requirement.

Tax registration

Every country and state has its tax slabs, as per the annual turnover. Therefore, registration of the service tax is very necessary for all the service providers.

PAN

A PAN [Permanent Account Number] is very important for any of the taxpayers. A company earning a certain amount of turnover has to pay the respective tax. Therefore, PAN Card of the company is very essential for all the tax-paying companies.

TAN

TAN [Tax Deduction and Collection Account Number] is an account number given by the income tax department for the businesses. Hence, businesses have to apply for the TAN application to the income tax department before the stipulated period.

Formation of business entity

The business entity formation is very crucial in protecting the company from several liabilities and saving the maximum tax amount. It is also very important in giving legal protection to the company and fulfills all the formalities accurately.

Post incorporation

Incorporation of a company is a very important process that every business wishes to do in a very hassle-free way. Hence, after incorporation, a company has to follow some general procedures like appointing an auditor, information on registered office, issuing share certificates to the subscribers, PAN, TAN, etc. Moreover, the above-mentioned procedures need to be complete immediately after the incorporation.

Accounting

Maintaining a proper financial record is one of the important things that every business should do. It helps to analyze the inflow and outflow of cash in the organization. It is also important in making important financial statements like the Income statement and Balance sheet.

Bookkeeping

Bookkeeping is an important document where a business maintains all the records of the income and expense in a well-organized way. It is also easier to make and maintain different financial statements for the business with bookkeeping.

Auditing

Auditing is an official examination of the financial records, accounts, statutory records, vouchers, and other documents. It examines the compatibility of the financial recording and other related documents as per the Generally Accepted Principles of Accounting (GAAP).

RBI compliances

RBI [Reserve Bank of India] has laid down certain guidelines for specific types of business. Hence, every business needs to adhere to all these guidelines systematically given by the RBI.

Legal documents

Every business has some important legal documents which they need to maintain properly. Some important legal documents include Partnership Agreement, Buying/Selling Agreement, Non-Disclosure Agreement, Terms of Service, and many more. The businesses need to submit these documents to the respective authorities when needed.

Banking compliances

Every business has its business account in the bank. There are some important compliances of each bank that has to be done for every company in the given duration.

Licenses requirement for Factories Act

Starting a factory involves a few of the procedures and licenses. Some basic licenses required for the factories are Proof for Occupier Address, Proof for Occupier Identity, Proof for Occupier Identity, and Proof for Manager Address.

Registration of patent

When a business has its product or service in the market and if they want to preserve the brand name, logo, or any important things related to it then they have to register a patent for it. A patent is giving the legal representation for the person or company for that brand.

Meru Accounting has expertise in all the compliances one need to do for setting up a business in Gujarat. They are also proficient in providing the best services for all the compliances in the business.