DOCUMENTS REQUIRED FOR STARTING A RETAIL FIRM 1.

ESI
What is Employees' State Insurance (ESI)? ESI has been created to provide medical benefits to workers and employees of factories and other commercial establishments whose wages/ salary is under a specified ceiling. This ceiling keep changing on timely basis and is currently Rs.15000/- per month with effect from 01-May2010. Who should take ESI registration?

Factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.

Shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

Private Medical and Educational Institutions employing 20 or more persons in certain States.

2. BUSINESS LICENSES
Here's a list of most common licenses in India that your business might require:

Service Tax Registration PAN Card TAN (Tax Collection & Deduction Account Number) VAT/ CST Registration Shops & Establishment License Central Excise License Importer Exporter Code Professional Tax Employee Provident Fund Registration ESI (Employee State Insurance) Registration

3. PF what is Employee Provident Fund? This is a fund created and managed by a Central Government Trust where employers and employees contribute specified amounts every month during the employment tenure of the employee. The contribution attracts an interest payable by the EPFO. Provident Fund account helps employees to take care of their various needs like:

Retirement Medical Housing Family obligations like marriage etc. Children's education Financing of insurance policies

Who should take PF registration?

Voluntarily - Any employer employing less than 20 people can voluntarily opt for PF registration. This is done to implement better employee benefits and retention and also help protect employee's interests.

Mandatorily
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Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.

Co-operative Societies, employing 50 or more persons & working without the aid of power.

Establishments not coverable statutorily can come under the coverage of the Act statutorily.

An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.

4. PROFESSIONAL TAX
What is Professional tax? A tax levied by State Government (mostly governed by Municipal council of the State Government) for profession or employment. Who should take Professional tax registration? Every company which transacts business and every person, who is engaged actively or otherwise in any profession, trade, calling or employment, are liable to register and then pay professional tax. Types of Registration

Employer - Applicable for the company or the person who is treated as an Employer. Even if the company/ person dont employ any work force, this registration is applicable. In most of the states, this is a fixed amount (around Rs.2500) which is paid annually.

Employee - Applicable for any employee who is in service/ employment of any company. Tax rates are based on income slabs and are paid monthly/ quarterly through their employer.

5. SHOPS AND ESTABLISHMENT

What is Shops & Establishment (S&E) registration? Shops & Establishment registration helps the State Government to provide minimum benefits and relief to unorganized sector employees. It also helps maintain and regulate conditions of work and employment. This is issued per premises and does not have a centralized registration concept. Who should take S&E registration? Any commercial outfit like Shops, Commercial Establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments etc. where a commercial activity is conducted.

6. VAT/CST/TIN What is VAT? VAT is a multi-point tax on value addition which is collected at different stages of sale with a provision for set-off for tax paid at the previous stage/tax paid on inputs. This is applicable to intra-state sales. What is CST? CST is same as VAT and is applicable for Inter-state sales only. Who is a dealer? 'Dealer' means any person who carries on business and includes

any person who, for the purposes of or in connection with or incidental to or in the course of his business buys, sells, goods directly or otherwise, whether for cash or for deferred payment or for commission, remuneration or other valuable consideration;

any department of the Central Government or a State Government, a local authority, Panchayat, Municipality, Development Authority, Cantonment Board and each autonomous or statutory body or an industrial, commercial, banking, insurance or trading undertaking whether or not of the Central Government or any of the State Governments or of a local authority, if it buys, sells, supplies or distributes goods, in the course of specified activities which may be prescribed from time to time;

a factor, commission agent, broker, del credere agent, or any other mercantile agent by whatever name called, who carries on the business of buying, selling , supplying or distributing goods on behalf of any principal, whether disclosed or not;

an agent of a non-resident (where such non-resident is a dealer under any other subclause of this definition);

a local branch of a firm or company or association of persons, outside The State where such firm, company, association of persons is a dealer under any other sub-clause of this definition;

a club, association, society, trust, or cooperative society, whether incorporated or unincorporated, which buys goods from or sells goods to its members for price, fee or subscription, whether or not in the course of business;

a casual trader; or any person who, for the purposes of or in connection with or incidental to or in the course of his business disposes of any goods as unclaimed or confiscated, or unserviceable or scrap, surplus, old, obsolete or as discarded material or waste products by way of sale.

7. IMPORTER EXPORTER CODE

What is IEC (Importer Exporter Code)? IEC Code is unique 10 digit code issued by DGFT Director General of Foreign Trade, Ministry of Commerce, Government of India to Indian Companies and Individuals to enable them carry International Trade. Who can get an IEC? An individual or a company who wants to do international business can get an IEC. Individuals can use either the name of their proprietorship firm or their name directly to apply for IEC.

8. SERVICE TAX
What is Service Tax? Service tax is, as the name suggests, a tax on Services. It is a tax levied on the transaction of certain services (as on date most of the services has been brought under service tax purview) specified by the Central Government under the Finance Act, 1994. It is an indirect tax (akin to Excise Duty or Sales Tax) which means that normally, the service provider pays the tax and recovers the amount from the recipient of taxable service.

Who is liable to pay service tax? Normally, the person who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act). However, in

the following situations, the receiver of the Services is responsible for the payment of Service tax;

Where taxable services are provided by foreign service providers with no establishment in India , the recipient of such services in India is liable to pay Service Tax,;

For the services in relation to Insurance Auxiliary Service by an Insurance Agent , the Service Tax is to be paid by the Insurance Company

For the taxable services provided by a Goods Transport Agency for transport of goods by road, the person who pays or is liable to pay freight is liable to pay Service Tax , if the consignor or consignee falls under any of the seven categories viz. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society (f) a registered dealer of excisable goods (g) a body corporate or a partnership firm

For the taxable services provided by Mutual Fund Distributors in relation to distribution of Mutual Fund the Service Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service.

9. PERMANENT ACCOUNT NUMBER

Why it is necessary to have PAN? It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it is mandatory to quote PAN on challans for any payments due to Income Tax Department. It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank.

All tax deductions at source for various receipts shall attract a higher rate (20%) if you dont have a PAN, with effect from 01 April 2010. Get a PAN card easily. No need to travel anywhere or stand in queues.

New PAN card If you have lost your PAN card and looking for getting a new PAN card printed No travel, No hassle Fast processing time (just 15-20 Business days after we receive your application)

10. TAN What is TAN? TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates. Who must apply for TAN registration? All those persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN. If you are paying a salary, or making payments for variety of purposes like consultancy fees, rent, contractual payments etc. the tax should be deducted at source and paid to income tax department.

REFERENCES:
http://elagaan.com/business/license-india#ixzz2i39NVYNH