How to register and setup Private Limited Company in Kerala?
South India is fast emerging to become a favorite spot for budding entrepreneurs from all over the country and even NRIs to set up their business there. The Kerala government is known to have taken stern measures for boosting entrepreneurship culture within the state right at student level. There can be noticed emerging key state level initiatives, entrepreneurs and much more in the state to boost its economy and to become a favored business hub like the other South Indian cities nearby.
What key initiatives have been taken by the Kerala government to help motivate new startups?
Technology Start-up 2014 policy has been launched by the state government, which covers almost every pain points faced during initiation of the startups ranging from infrastructure development, capacity development, industry and funding association.
For creating proper awareness to become a successful entrepreneur in the state, the government has initiated various activities. There is also promoted systematic development among youths of the state to change progressively their outlook, so as to help create and develop innovative startups / projects. For each and every successful startup, innovation is considered to be the major thrust area. Hence, the need to empower the youngster’s technical ability has become inevitable.
What key qualities to check prior to boarding startups?
Market viability, idea validation, innovation on idea, whether product can solve issues faced in the society or not, will traction be created with the idea, if the idea is genuinely technically sound and if the founder has in-depth technical knowledge. The sectors which according to the industry experts, is said to stand out in the state are electronics information technology, tourism, biotech, healthcare and food tech. Infrastructure facilities as an incubator are offered at three nodes in the state which are Calicut, Ernakulam and Trivandrum.
How to set up and register an establishment in Kerala?
Startups and small businesses are being encouraged in the state according to the latest policies introduced by the central and state governments. The Chief Minister also has been offering budding and existing entrepreneurs with favorable economic policies and better infrastructure facilities to initiate new companies. They have been welcoming new entrepreneurs to visit the state to launch new businesses or start up their branches of their existing businesses here. With regards to entrepreneurship, the state of Kerala is definitely witnessing a boom.
But every new venture or business, irrespective of the segment it belongs to needs to be registered as company under the Indian Companies Act.
Once the decision is made to initiate new business in the state, the very first thing to do is to know the type of entity to be formed. Business entities are of different types, like:
- Public Limited
- Private Limited
- LLP (Limited Liability Partnership)
- OPC (One Person Company)
- Sole Proprietorship
If the desire is to initiate a small firm, then there is no need to register for private ltd. company during the initial stages of launching the business, since it can be expensive. There needs to be given fees to the government and the chartered accountant. Also all accounts need to be kept up to date and the chartered accountant is to perform annual auditing. Tax returns are to be filed annually, which again will invite expenses in the form of service charges.
If the plan is to conduct business with foreign clients, then registration certification, according to the Indian Companies Act! If doing business alone, then OPC (One Person Company) will be sufficient. There will be necessary minimum of two partners to form Limited Liability Partnership or Private Limited Company.
Previously, the company registration process was stated to be a time consuming process in Kerala. But things over time have changed, especially with the current government focusing fully upon brining new investments to the state and increase the overall economy. Hence, company registration has become much easier these days.
Few steps to register for a private company
- DIN application for both the Directors.
- DSC Digital Signature to be obtained for both the Directors.
- Company Name Approval
- Finalize MOA (Memorandum of Association) & AOA (Articles of Association)
- Final ROC Incorporation.
Few documents necessary along with other requirements to register a company in Kerala
- At least 2 shareholders or directors need to be present in the company.
- All the directors are to submit color photographs.
- All directors are to submit their Pan cards.
- All directors are to submit their address and photo identity proofs.
- All directors are to proivde DIN (Director Identification Number)
- Proof of Registered Office Address necessary (even there can be used Virtual office address)
Currently, the time frame taken to complete the registration process of a new company in Kerala takes about 1 – 5 days. However, the government has been trying to cut down this time-frame to about 24 hours to make the state business friendly.
Some process to follow when registering the company in Kerala
The professional and experienced business consultant can prove to be of great help to help with the registration process and make it quick, simple and easy. The consultant needs to be provided with the following:
- Scanned copies of all essential documents
- Provide 3-5 proposed company names.
- Prepare company objectives
- All directors are to sign DIN Annexure, Articles and Memorandum of the Company including Digital Signature.
- Also should be signed the Bank Account form and PAN form for the company.
It will be of utmost importance to ensure hiring and getting assistance only from a reputed and well established business consultant who is known to offer professional services. A legitimate consultant can help start a legitimate business successfully. There are also available affordable office spaces across the state with virtual office solutions that can prove to be extremely helpful to operate the business smoothly.
At the time of registering the business, it is equally crucial to have professional office address to correspond with vendors and clients alike.
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