SME’s and start up businesses are being very much encouraged in Kerala as per the policies of the State and Central governments. Due to the favourable economic policies of the Chief Minister for registering new companies, new entrepreneurs coming up in the state now. Kerala is booming in terms of entrepreneurship. Every new business or venture, no matter in what sector it operates, must be registered as a company under the Companies Act of India.
As you have decided to start your venture, the first thing you would be thinking is what type of company registration in Kerala you should be applying for
There are different types of company registration in Kerala.
1) Sole Proprietorship
3) One Person Company (OPC)
4) Limited Liability Partnership (LLP)
5) Private Limited
6) Public Limited
If you are starting a small firm, no need to go for Private Limited company registration in Kerala in the early stage of your business. Forming a Private Limited company is expensive. There is Government fees of around 13000 and Chartered Accountant will charge you anywhere from 5000 to 10000. So total you need to spend around 20-15K just for registration. You need to keep all accounts up to date with annual auditing to be done by a Chartered Accountant. Also tax return has to be filed every year. This will cost you around 25K annual in service charges.
If you are planning to do business with clients from abroad, they may ask for registration certificate. In that case, you must register your company in Kerala according to the Companies Act of India. If you are alone, just go for One Person Company (OPC). To form a Private Limited Company or Limited Liability Partnership (LLP), there are minimum 2 partners required. Not long ago, it was a really time consuming process to register a company in Kerala. However, now things have changed for the better as the government is fully focusing on bringing in new investments in the state. Due to this reason company registration in Kerala has now become relatively easier.
Steps in Private Limited Company Registration in Kerala:
1. Apply for DIN for both Directors.
2. Obtain DSC Digital Signature for both Directors.
3. Company Name Approval
4. Finalize Memorandum of Association (MOA) and Articles of Association (AOA)
5. File Incorporation with Roc.
Some of the documents and other requirements for company registration in Kerala are as follows:
1. The company must have a minimum of 2 directors or shareholders.
2. Colour photographs of all the directors.
3. Photo identity and address proof of all the directors.
4. Pan card number of directors.
5. Director Identification Number (DIN) for all directors.
6. Registered Office Address Proof. (Virtual Office Address can be used.
Goods & Services Tax
GST is a single tax applied to the supply of goods and services right from the manufacturer to the consumer. GST is a comprehensive tax system applied at multiple stages in a product or service lifecycle.
Raw materials Purchase – Stage 1
Manufacturing – Stage 2
Wholesale – Stage 3
Retail – Stage 4
Consumer – End stage
Tax is levied at every stage
Not applied to goods and services which are exported out of the country.
Lowered tax burden has direct implication on lowering prices on goods for the customers.
Leads to more tax revenue collections.
Unorganized sectors come under a tax bracket
GST on input costs can be recovered and this reduces input cost pressure.
Makes India a unified market reducing the business transaction cost