need to know how to register new business plan in bihar
introduction of new business
Registering a new business in Bihar, India, involves several essential steps and procedures. Each of these steps is critical to ensure that your business complies with the legal and regulatory requirements in the state. Bihar, with its diverse economic opportunities and growing market, provides a conducive environment for new businesses. In this comprehensive guide, we will outline the key steps involved in registering a new business in Bihar, with each step containing five key points. visit official website
Business Idea and Planning
Business Concept and Viability:
- Start by developing a clear and well-researched business idea.
- Evaluate the demand for your product or service in the Bihar market.
- Analyze your competition and identify your unique selling points.
Market Research and Business Plan:
- Conduct thorough market research to understand customer preferences and market trends.
- Create a detailed business plan that outlines your business goals, strategies, and financial projections.
- Include information on funding requirements and potential sources of capital.
Legal Structure Selection:
- Decide on the legal structure of your business (e.g., sole proprietorship, partnership, private limited company).
- Consider factors such as liability, taxation, and ease of registration.
- Register your chosen business name with the Registrar of Companies (RoC).
Location and Infrastructure:
- Select a suitable location for your business operations in Bihar.
- Ensure that the location complies with zoning regulations and has the necessary infrastructure.
- If required, lease or purchase the property and obtain the necessary permits.
Business Licensing and Permits:
- Identify the specific licenses and permits required for your business type.
- Apply for licenses from relevant government authorities (e.g., municipal corporation, pollution control board).
- Ensure compliance with local regulations and environmental norms.
Tax Registration
Permanent Account Number (PAN):
- Apply for a PAN card for your business entity from the Income Tax Department.
- This is necessary for tax compliance and financial transactions.
Goods and Services Tax (GST):
- Determine if your business is liable to register for GST based on turnover.
- If required, apply for GST registration through the GST portal.
Professional Tax:
- Register your business for professional tax with the Bihar Professional Tax Department.
- Obtain a certificate and comply with the professional tax regulations.
Import-Export Code (IEC):
- If your business involves importing or exporting goods, obtain an IEC from the Directorate General of Foreign Trade.
Other Registrations:
- Depending on your business type, consider additional registrations such as Shops and Establishment Act, MSME registration, etc.
Compliance with Labor Laws and Regulations
Employee Provident Fund (EPF):
- Register your business with the Employees’ Provident Fund Organization (EPFO).
- Enroll your employees for EPF benefits as per the law.
Employee State Insurance (ESI):
- If you have more than ten employees, register for ESI with the Employees’ State Insurance Corporation (ESIC).
- Provide ESI benefits to eligible employees.
Labor Contracts and Agreements:
- Draft employment contracts and agreements in compliance with labor laws.
- Ensure adherence to minimum wage regulations, working hours, and safety standards.
Professional Tax:
- Register your employees for professional tax as per Bihar’s professional tax regulations.
- Deduct and remit the tax from their salaries.
Industrial Licensing and Permits:
- Depending on your industry, obtain relevant industrial licenses and permits, including environmental clearances if necessary.
Business Banking and Financial Setup
Open a Business Bank Account:
- Choose a suitable bank and open a business bank account in the name of your company.
- Provide all required documents and maintain proper records of transactions.
Accounting and Bookkeeping:
- Set up an accounting system to track your financial transactions.
- Ensure compliance with the accounting standards and tax regulations.
Business Insurance:
- Consider various types of insurance, such as liability insurance, property insurance, and employee insurance.
- Select policies that mitigate risks specific to your business.
Funding and Capitalization:
- Secure necessary funding through equity, loans, or investments, as per your business plan.
- Ensure you maintain proper capitalization and financial stability.
Tax Planning and Compliance:
- Hire a tax consultant or chartered accountant to assist with tax planning and compliance.
- File tax returns and pay taxes promptly to avoid penalties.
Registration with the Ministry of Corporate Affairs
Obtain Digital Signature Certificate (DSC):
- Apply for a DSC for the authorized signatory of your business.
- Choose a certified agency to issue the DSC after due verification.
Director Identification Number (DIN):
- If you plan to register a private limited company, apply for DIN for the proposed directors.
- File Form DIR-3 online for DIN allotment.
Name Reservation:
- Choose a unique and appropriate name for your company.
- Check the availability of the chosen name on the MCA portal and reserve it using Form INC-1.
Incorporate the Company:
- Prepare the Memorandum of Association (MOA) and Articles of Association (AOA).
- File Form INC-7, INC-22, and INC-20A to incorporate the company.
- Pay the required fees.
Receive Certificate of Incorporation:
- Once the Registrar of Companies (RoC) approves your application, you will receive the Certificate of Incorporation.
- This certificate confirms the legal existence of your company.
benefits of registering new business
Economic Growth Potential: Bihar is experiencing significant economic growth, offering business opportunities in various sectors. As the state continues to develop, there is a growing demand for goods and services.
Large Consumer Base: With a population of over 120 million, Bihar provides a substantial and diverse consumer market. This presents opportunities for businesses to target a vast and varied customer base.
Government Initiatives: The Bihar government has introduced initiatives to promote industrialization and attract investment. These include the “Bihar Industrial Investment Promotion Policy,” which offers incentives and support to businesses.
Cost-Effective Operations: The cost of doing business in Bihar is relatively lower than in many metropolitan areas. This can result in cost savings for businesses, making it an attractive place to set up operations.
Strategic Location: Bihar’s central location in eastern India offers businesses easy access to neighboring states and international borders, making it a strategic hub for trade and distribution.
how auriga accounting help you to registering new business in bihar
Auriga Accounting, as an accounting and business advisory firm, can provide valuable assistance and support when it comes to registering a new business in Bihar. Here’s how Auriga Accounting can help you in the registration process:
Business Structure and Legal Guidance:
- Auriga Accounting can assist you in determining the most suitable legal structure for your business, whether it’s a sole proprietorship, partnership, private limited company, or limited liability partnership (LLP). They can help you make an informed decision based on your business goals and legal requirements.
Company Registration:
- The firm can guide you through the process of registering your business with the relevant authorities, ensuring that you comply with all legal and regulatory requirements. This includes assistance with name reservation, obtaining Digital Signature Certificates (DSC), Director Identification Numbers (DINs), and filing the necessary forms with the Registrar of Companies (RoC).
Tax Registrations:
- Auriga Accounting can help you with essential tax registrations, including obtaining a Permanent Account Number (PAN) and Goods and Services Tax (GST) registration. They ensure that your business is tax-compliant, which is essential for smooth operations and financial reporting.
Compliance with Local Laws:
- The firm can provide insights into specific local regulations and compliance requirements that are relevant to your business type and industry in Bihar. This ensures that you adhere to all local legal and regulatory standards.
Accounting and Bookkeeping:
- Auriga Accounting can set up an efficient accounting system for your business, ensuring accurate record-keeping and financial reporting. This is crucial for compliance, decision-making, and managing your finances effectively.
Financial Advisory:
- The firm can offer financial advice and insights to help you make informed decisions about your business’s growth, financial health, and investment opportunities. They can assist in budgeting, cash flow management, and financial forecasting.
Audit and Assurance Services:
- If required, Auriga Accounting can conduct audits and provide assurance services to assess the accuracy and completeness of your financial statements. This enhances transparency and credibility with stakeholders, including investors and lenders.
Compliance with Labor Laws and Regulations:
- The firm can guide you through labor laws, ensuring that your business complies with regulations related to employee benefits, provident fund, professional tax, and other labor-related obligations.
Environmental Clearances and Industry-Specific Compliance:
- If your business operations involve environmental clearances or industry-specific compliance requirements, Auriga Accounting can assist in navigating these regulations to ensure your business remains in compliance.
Business Valuation and Funding Support:
- If needed, the firm can help you determine the value of your business, which is important for various purposes, such as mergers, acquisitions, or fundraising. They can also provide guidance on potential sources of funding and capital.
