Business in Gujarat

Vibrant Gujarat - Introduction

Vibrant Gujarat – Introduction

  • In the age of globalization and technological adaptation, Gujarat has also developed to a large extent and has taken vital steps on the path of progress and development. Presently the state is headed by Hon’ble CM Anandiben Patel who is innovative, enthusiastic and devoted person. The industrialists have started emerging in Gujarat examining the pace of the infrastructural development and adaptation of modern techniques and technologies.
  • Gujarat is among the handful of states, where the state government has framed clear policies in the vital areas such as industrial, education, posts, power, roads and agriculture. Gujarat has also demonstrated strong skills in social entrepreneurship, defined in simple terms as meeting everyday needs in ordinary people in an affordable manner by capitalist means.
  • Gujarat has, since last few years, also shown willingness to explicitly address business environment. It has facilitated combining knowledge, resources, energies and management skills of public, private and not-for-profit sectors for addressing specific public policy challenges.
  • Our company will help you in setting up business in Gujarat and also assisting the existing business.

Obtain PAN Card of Income Tax

Obtain PAN Card of Income Tax

  • Permanent Account Number (PAN) is an identity of a person and not a scheme by the government to keep an eye on the activities of the citizens / corporate. Also, there is no compulsion for a person holding PAN Card to file income tax returns. As the filing is dependent on income i.e. income tax returns have to be filed when the income becomes taxable except in case of corporate and firms where filing of income tax returns are compulsion.
  • There is a very simple procedure to obtain PAN Card. It has been briefly described as follows:
    • Download the form and instruction for applying for PAN (i.e. form no. 49A), from our download section:
    • Fill the details as per forms instructions (Do the sign on 49A by black pen only and Do not fill form 49A, it will be filled by our staff after verifying all the details so forms rejection can be avoided) and attach the required identity proofs as mentioned in the instruction.
    • Submit the form to our office.
    • PAN Card will be delivered to your doorstep after 10-15 days.
    • If you have already PAN Card and you require to change the information like change in name / father’s name / firm name / company name, address, sign, photograph then we have to file application of correction in PAN card in form No. 49B. Moreover, in case if you have lost the PAN Card then also the form No. 49B requires to be filed.
    • Download the form and instruction for correction in PAN (i.e. form no. 49B), from our download section:
    • Fill the details as per forms instructions (Do the sign on 49B by black pen only and Do not fill form 49B, it will be filled by our staff after verifying all the details so forms rejection can be avoided) and attach the required identity proofs as mentioned in the instruction.
    • Submit the form to our office.
    • Corrected New PAN Card will be delivered to your doorstep after 10-15 days.

Registration of Micro, Small or Medium Enterprise (MSME) (formally known as SSI – license)

Registration of Micro, Small or Medium Enterprise (MSME) (formally known as SSI – license)

  • If your enterprise is going to start manufacturing or servicing then it requires to get registered with MSME. The registration with MSME is mainly in two parts:
    • Part-1: To be filed at the time of establishment of enterprise.
    • Part-2:To be filed after the enterprise starts functioning (Note that the enterprise should start functioning in 2 years of filing Part-1. Else, Part-1 becomes invalid).
  • The procedure for registration with MSME is as follows:
    • Kindly fill our basic information sheet which can be downloaded from : www.pcac.in/download
    • Submit the basic information sheet including required documents mentioned in that to our office, our staff will file the required forms online to government department and will contact you for signatures in various forms.
    • After the form being signed and submitted, the MSME Code, Certificate will be received in a week and will be delivered to your doorstep.
    • After receiving the MSME code, the entrepreneur can start its business activity.
    • Part-2 of the form should be filed after the enterprise starts its business activities. So, after the factory being started, let us inform, so your part-2 registration can be filed and you will be delivered Part 2 registration certificate at your doorstep.

Obtaining Bank Finance (Above 1 Crore - INR)

Obtaining Bank Finance (Above 1 Crore – INR)

Your banking finance need can generally be discharged by any of the following products of various banks.

  • Term Loans of Bank:
    Generally, while purchasing machineries, factory, land and building or allied machineries such loan is to be obtained from bank. Such loan can be obtained in Indian Rupee or in foreign currency. If any term loan is running with other banks which are costing high / interest rate is high, you can switch to lower interest charging banks. The latest trends of banks are regularly observed by our company and we will be able to help to get best deal to your enterprise. Generally the maximum term loan is provided at 75% of machineries subject to collateral securities offered by your enterprise.
  • Working Capital Loan / CC – OD:
    Your business cycle’s day to day requirement can be fulfilled with the working capital loans popularly known as Cash Credit (CC) or Overdraft facility (OD). Generally it is to be provided to your company depending on sales and stock available with your company. Generally it is calculated as 20% of sales, 75% of stock whichever is lower subject to collateral securities offered by your enterprise.
  • Mortgage Loan:
    If you have not any specific / more particular use of loan, you can go for mortgage of loans where your house property, factory building, office or flat is kept as mortgage by bank and bankers will provide up to 60% of market value of property subject to your income / repayment capacity and other loans.
  • Housing Loan:
    If you are intend to buy lavish residential house property, it is always best to go for this option. Bankers generally prefer to fund 90% – 150% of document value of house subject to your income / repayment capacity and other loans.
  • There are other products also like private equity, IPOs, Factoring, Bill Discounting, Commercial papers, Forfeiting such can be suitable for your enterprise but the same can be suggested by us only after personal discussion and verification of your financial statements.
  • The procedure for obtaining finance is as follows:
    • Kindly fill our basic information sheet which can be downloaded from: www.pcac.in/download
    • Submit the basic information sheet including required documents mentioned in that to our office, our staff will make detailed project and will contact you for signatures in various forms.
    • After the form being signed and submitted, the bankers will visit your enterprise.
    • After due satisfaction and comfort of banker, they will process your loans and issue the sanction letter.
    • All the conditions of sanction letter will be verified by us and forwarded to you for your verification.
    • If all the conditions of sanction letter are comfortable to us the disbursement of the loan can be taken.

Gujarat Value Added Tax (VAT) and Central Sales Tax (CST) TIN No

Gujarat Value Added Tax (VAT) and Central Sales Tax (CST) TIN No

  • If you are manufacturer, trader, exporter or importer having turnover of more than 5 Lakhs during a year (of taxable items) then you are required to register with Commercial Tax Department / VAT department. If you are selling goods to or purchasing goods from outside Gujarat, then you are required to register with Central Sales Tax at the same department. Moreover, your enterprise can voluntarily register with VAT / CST.
  • VAT / CST registration can be done in two ways
    • Mandatory (Compulsory) Registration (i.e. in case of your turnover exceeds Rs. 500,000/- or you had inter state transactions)
    • Voluntary Registration.
  • The procedure for registration with Gujarat VAT / CST is as follows :
    • Kindly fill our basic information sheet which can be downloaded from :www.pcac.in/download
    • Submit the basic information sheet and required documents to our office, our staff will file the required forms and will contact you for signatures in various forms.
    • After submitting the forms duly signed and stamped, the Gujarat VAT department will issue temporary VAT / CST TIN No. within 3 days. And final VAT / CST TIN No is allotted within 30 days and will be delivered at your doorstep.
    • After getting VAT / CST no., monthly or quarterly return and tax is to be filed with such department.

Shop Act License

Shop Act License

  • If you are opening shop at city or factory outlet then the Shop Act license is to be obtained from local Municipal Corporation. It has to be obtained under the Shops and Establishment Act, 1953.
  • The procedure for registration for Shop Act license is as follows:
    • Kindly fill our basic information sheet which can be downloaded from : www.pcac.in/download
    • Submit the basic information sheet and required documents to our office, our staff will file the required forms and will contact you for signatures in various forms.
    • After submitting the forms duly signed and stamped, the municipal corporation officials will visit your shop.
    • The Shop Act license will be allotted within 45 days after visit and will be delivered at your doorstep.

Professional Tax

Professional Tax

  • If you are doing any business where the turnover of your enterprise is more than Rs. 2,50,000/-p.a. then you are required to pay Professional Tax to Local Municipal Corporation. The chart for the tax is as under:
Turnover (in INR) Tax Amt. Rs.
0 – 250,000 NIL
250,000 – 500,000 500
500,000 – 1000,000 1250
Above 1000,000 2500
    • Professionals like lawyer, doctor etc are required to pay flat tax of Rs. 2000/- p.a.
    • Company, firm if not in any business or not having turnover then also they are required to pay flat tax of Rs. 2000/-p.a.
    • The tax of the financial year should be paid by every 30th September otherwise interest will be charged.
  • The procedure for registration for Professional Tax is as follows:
    • Kindly fill our basic information sheet which can be downloaded from : www.pcac.in/download
    • Submit the basic information sheet and required documents to our office, our staff will file the required forms and will contact you for signatures in various forms.
    • After submitting the forms duly signed and stamped, the Professional Tax Registration Certificate will be allotted within 15 days and will be delivered at your doorstep.

Service Tax

Service Tax

  • If your enterprise is providing any services, the service tax registration is required to be obtained from Central Excise and Service Tax department. It should be noted that service tax is leviable only on SERVICES. If you are in manufacturing or trading then service tax is not leviable.
  • It is compulsory for the enterprise that are having turnover of more than Rs. 9 lakhs to obtain service tax registration. Moreover, if the enterprise’s turnover has exceeded Rs. 10 Lakhs they are required to pay service tax to the department. Once, the turnover had exceeded Rs. 10 Lakhs then after all the service sales extract service tax at applicable rate. In the next year no exemption is available.
  • The procedure for registration for service tax is as follows:
    • Kindly fill our basic information sheet which can be download from : www.pcac.in/download
    • Submit the basic information sheet and required documents to our office, our staff will file the required forms and will contact you for signatures in various forms.
    • After submitting the forms duly signed and stamped, the service tax number and certificate will be allotted within 7 days and will be delivered at your doorstep.
    • After Service tax number is received, the service tax is to be paid monthly / quarterly and the online return of the same is to be filed half-yearly.

Central Excise Tax

Central Excise Tax

  • If your enterprise is engaged in manufacturing of any item, product then the central excise registration is required to be obtained. So, traders or service providers are not required to obtain excise registration.
  • It is compulsory for the enterprise that are having turnover of more than Rs. 90 Lakhs to obtain central excise tax registration. Moreover, if the enterprise’s turnover has exceeded Rs. 150 Lakhs they are required to pay excise tax to the government at the applicable rate of product. Once, the turnover had exceeded Rs. 150 Lakhs then after all the sales extracts excise tax at applicable rate. In the next year no exemption is available.
  • The procedure for registration for central excise is as follows:
    • Kindly fill our basic information sheet which can be downloaded from : www.pcac.in/download
    • Submit the basic information sheet and required documents to our office, our staff will file the required forms and will contact you for signatures in various forms.
    • After submitting the forms duly signed and stamped, the central excise tax number and certificate will be allotted within 15 days and will be delivered at your doorstep.
    • After the Central Excise no. is received the tax is to be paid monthly and return of the same is to be filed quarterly/half-yearly/yearly.

Formation of Company

Formation of Company

  • Formation of company has to be done with the Registrar of Companies (ROC). The Companies Act, 2013, has also provided a procedure for registration of a company. The procedure includes the uploading of certain forms, payment of statutory fees and obtaining of DIN (Director’s Identification Number) for all the persons intending to become directors of the specific company.
  • Brief description of the steps to be followed for the registration of a new company is as follows:
    • Present, in front of the ROC (Registrar of Companies), at least three names as the promoter’s preferences as the name of proposed company.
    • Name approval is finalized by ROC.
    • Form DIN-3 has to be filled and uploaded for obtaining the DIN (Director’s Identification No.) of the directors intending to be appointed as the directors. If the directors has already DIN, such should be provided to us.
    • Payment of statutory fees and uploading necessary forms to ROC.
    • Company is duly registered with ROC after verification of all documents to ROC.
    • Printing of the Memorandum of Association (MOA) and Articles of Association (AOA) and making common seal when company is registered with ROC.
    • All this process takes approx. 20-30 days. So in such days we can able to form a new company.
  • The procedure for registration for company at ROC is as follows:
    • Kindly fill our basic information sheet which can be downloaded from :  www.pcac.in/download
    • Submit the basic information sheet and required documents to our office, our staff will file the required forms / upload at ROC website and will contact you for signatures in various forms.
    • First the company name approval is taken where one name will be selected out of three name suggested by you. After name is approved by ROC, we will communicate you and after your confirmation further process of registration will be done.
    • After submitting / uploading the forms duly signed / digitally signed and stamped, the ROC will issue company registration certificate will be allotted will be delivered at your doorstep.

Import Export License (IEC)

Export License (IEC)

  • One of the most common questions we ponder on when the idea of starting the business of import and export is about obtaining the Import-Export Code (IEC). So, if your enterprise wants to import or export any product, commodity it does requires registration with Director General of Foreign Trade (DGFT). Even if you want to just purchase machinery for your production, it requires registration with DGFT and obtaining IEC. Moreover, for making any advance payment of products, machineries the banker will also requires your IEC.
  • The procedure for registration with Director General of Foreign Trade (DGFT) for Import Export Code (IEC) is as follows:
    • Kindly fill our basic information sheet which can be downloaded from : www.pcac.in/download
    • Submit the basic information sheet and required documents to our office, our staff will file the required forms and will contact you for signatures in various forms. This will include your banker’s signature on specified format.
    • After submitting the forms duly signed and stamped, the DGFT will issue the IEC certificate and such will be delivered at your doorstep within 10 days.