1. To study the trade document of a Retail company
Retail Industry in India
The retail sector in India is growing at a phenomenal pace leading to job opportunities in
different areas. The retail sector in India is growing at a phenomenal pace. According to the
Global Retail Development Index 2012, India ranks fifth among the top 30 emerging markets
for retail.
There are many factors contributing to the boom in this sector. To name a few, increased
consumerism with a capacity to spend on luxury items and increased spending power in the
hands of Indians. More Indians are travelling abroad and are exposed to different cultures and
way of life and thereby more brands. India's internal consumption is also high and the
consumption pattern owning to diversity in culture, religion and the family values that
encourage spending on specific occasions keep the retail business well oiled. Marriages add a
big dimension to the retail spends. Our culture expects a lot of give-and-take for marriages,
festivals and other important events of life. Hence, it's imperative for people right from rural to
the urban , irrespective of their caste and creed or economic status, to spend on gifts as a part
and parcel of life. And that's the reason worldwide retailers eye the Indian market,
The upcoming areas within retail are luxury, super specialty stores/ malls, and renewed
emphasis on high streets. Unfortunately, malls have become expensive affairs for most of the
retailers. Therefore, a huge investment and emphasis has been laid down on e-tailing or online
stores that has wider reach and are economically viable," says DarlieKoshy, DG and CEO,
Institute of Apparel Management.
There are many forms in which a business can be organized. Usually, the following models are
popular:
Sole Proprietorship
Partnership ,including Limited Liability Partnerships called (LLP)
Company – Public/Private
While there are certain processes that are common to any form of business organization, each
one of the above has certain peculiar requirements. This article analyzes the requirements for
starting a Company. These may vary from State to State and may change from time to time.

2. Also a business may require additional (or not all of the below mentioned) registrations,
compliance and certifications.
To starting a new business one keeps the basic legal requirements in mind. The main legal
formalities required to start a Company form of business in India.
To register a company, you need to first apply for a Director Identification Number (DIN) which
can be done by filing eForm for acquiring the DIN. You would then need to acquire your Digital
Certificate and register the same on the portal. Thereafter, you need to get the company name
approved by the Ministry. Once the company name is approved, you can register the company
by filing the incorporation form depending on the type of company
(Use quick links available on left panel in case steps are known)
Step 1 : Application For DIN
The concept of a Director Identification Number (DIN) has been introduced for the first time
with the insertion of Sections 266A to 266G of Companies (Amendment) Act, 2006. As such,
all the existing and intending Directors have to obtain DIN within the prescribed time-frame as
notified. You need to file eForm DIN-1 in order to obtain DIN. To get more information about
the same..
Step 2 : Acquire/ Register DSC
The Information Technology Act, 2000 provides for use of Digital Signatures on the documents
submitted in electronic form in order to ensure the security and authenticity of the documents
filed electronically. This is the only secure and authentic way that a document can be submitted
electronically. As such, all filings done by the companies under MCA21 e-Governance
programme are required to be filed with the use of Digital Signatures by the person authorised to
sign the documents.
Acquire DSC -A licensed Certifying Authority (CA) issues the digital signature. Certifying
Authority (CA) means a person who has been granted a license to issue a digital signature
certificate under Section 24 of the Indian IT-Act 2000.Register DSC -Role check for Indian
companies is to be implemented in the MCA application. Role check can be performed only
after the signatories have registered their Digital signature certificates (DSC) with MCA. To
know about it click Register a DSC

3. Step 3 : New User Registration
To file an eForm or to avail any paid service on MCA portal, you are first required to register
yourself as a user in the relevant user category, such as registered and business user. To register
now click New User Registration
Step 4 : Incorporate a Company
Apply for the name of the company to be registered by filing Form1A for the same. After that
depending upon the proposed company type file required incorporation forms listed below.
Other Documents related to business
Register the company’s name
Income tax related compliance- PAN,TIN/TAN
Registration Act
Indian stamp act
Easement act 1882
Shop and Establishment Act
The Trade & Merchandise Marks Act, 1999
Laws relating to Employment
Environment (Protection) Act 1986
Register the company’s name:
The Ministry of Corporate Affairs (MCA) has revised the Company Name application and
approval process and the company name availability in India will be regulated as per the revised
'Name Availability Guidelines 2011'.
As per the Name Availability Guidelines 2011, no company should be registered with an
undesirable name.
A name is considered to be undesirable if it is identical with or too nearly resembling with:
a. Name of a company in existence and names already approved by the Registrar of
Companies;

4. b. Name of a Limited Liability Partnership (LLP) in existence or names already approved
by Registrar of LLP; or
c. A registered trade-mark or a trade mark for which an application is filed under the Trade
Marks Act, 1999
While making a Company name application, the following points should be considered:
1. Use the search facilities available on the portal of the Ministry of Corporate Affairs
(MCA) to check the resemblance of the proposed name(s) with the companies and
Limited Liability Partnerships (LLPs) respectively already registered or the names
already approved.
2. The proposed name is not infringing any registered trademarks or a trademark for which
an application is filed.
3. The proposed name is not in violation of the provisions of Emblems and Names
(Prevention of Improper Use) Act, 1950 as amended from time to time.
4. The use of the proposed name(s) should not constitute an offence under any law
5. The proposed name is should not offensive to any section of people
The following documents is required:-
ID proof, PAN Card, Address Proof is needed along with the application form + registration fee
to get the certificate of incorporation that legally approves the name of your business.
Income tax related compliance- PAN,TIN/TAN
Permanent Account Number (PAN)
After incorporation, the Company must obtain its PAN. For this purpose, an application
needs to be filed with the Income Tax Department in Form 49A with the necessary
documents. PAN is mandatory for opening of Bank Account, filling of Income Tax returns
and various other financial transactions.
Tax Account Number (TAN)
TAN stands for Tax Deduction Account Number and Collection Account Number, issued
by authorized agent of National Securities Depository Limited It is a 10 digit alpha
numeric number. Mandatory for all persons who deduct or collect taxes are deducted from

5. various clients in the bills and this is mentioned in form 16 or form 16 a when issued to
deducted.
Tax Identification Number (TIN)
TIN relates to VAT and it is given by sales tax department. It is quoted on bills and other
returns to show the amount tax collected. It also returns to show the amount tax collected.
Registration Act
The objective of Registration Act is to ensure that all immovable property such as land are
furnished correctly in the records. It is for the ease of transactions relating to immovable
property.
Indian stamp act
The Indian Stamp Act, 1899 (2 of 1899) is a fiscal statute laying down the law relating to
tax levied in the form of stamps on instruments recording transactions & Stamp duties on
instruments specified in Entry 91 of the Union List (viz. Bills of Exchange, cheques,
promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares,
debentures, proxies and receipts) is levied by the Union. Stamp duties on instruments other
than those mentioned in Entry 91 of the Union List above are levied by the States as per
Entry 63 of the State List. Provisions other than those relating to rates of duty fall within
the legislative power of both the Union and the States by virtue of Entry 44 of the
Concurrent List. Stamp duties on all the instruments are collected and kept by the
Concerned States.
Easement act 1882
According to Easement act 1882, the right of easement is derived from the ownership of
property .It means a right which the owner or occupier of land possesses for the beneficial
enjoyment of that land and which permits him to do or to prevent something from being
done in respect of certain other land not his own.
Shop and Establishment Act
Retail stores are governed by various Shops and Establishments Acts as applicable in the
states.These acts regulate the conditions of work and employment in shops and generally
prescribe obligations in respect of inter alia
o registration,
o opening and closing hours,

6. o daily and weekly working hours,
o holidays, leave,
o health and safety measures
o wages for overtime work
The Trade & Merchandise Marks Act, 1999
TRIPS define Trademarks as any sign, or any combination of signs that can distinguish
the goods and services of one organization from the other organization. TRIPS provides
for initial registration and each renewal for a term of ten years. The Trade and
Merchandise Act 1999 is compatible with TRIPS and harmonizes it with international
systems and practices.
Laws relating to Employment
- Employees’ Provident Funds Act, 1952
- Employees’ Pension Scheme
- Employees’ State Insurance Act,1948
- Contract Labour (Regulation and Abolition) Act, 1970
- Minimum Wages Act, 1948
Environment (Protection) Act 1986
Provides for standards for emission or discharge of environmental pollutants from various
sources. Restricts areas in which operations or processes cannot be carried out or shall be
carried out subject to certain safeguards.
Miscellaneous
Importer Exporter Code (IEC)
IEC Code is mandatory for doing import or export
No: Procedure
Time to
complete:
Cost to complete:
1
Obtain director
identification number
(DIN) online from the
Ministry of Corporate
Affairs portal (National)
1 day INR 100

7. 2
Obtain digital signature
certificate online from
private agency authorized
by the Ministry of
Corporate Affairs
(National)
3 days INR 1,500
3
Reserve the company
name online with the
Registrar of Companies
(ROC) (National)
2 days INR 500
4
Stamp the company
documents at the State
Treasury (State) or
authorized bank (Private)
1 day
INR 1,300 (INR 200 for MOA + INR
1,000 for AOA for every INR 500,000
of share capital or part thereof + INR
100 for stamp paper for declaration
Form 1)
5
Get the Certificate of
Incorporation from the
Registrar of Companies,
Ministry of Corporate
Affairs (National)
5 days INR 14,133 (see comments)
6 Make a seal (Private) 1 day
INR 350 (cost depends on the number of
seals required and the time period for
delivery)
7*
Obtain a Permanent
Account Number (PAN)
from an authorized
franchise or agent
appointed by the National
Securities Depository
Ltd. (NSDL) or the Unit
Trust of India (UTI)
Investors Services Ltd.,
as outsourced by the
Income Tax Department
(National)
7 days
INR 67 (INR 60 application fee +
12.36% service tax + INR 5 for
application form, if not downloaded)

8. 8*
Obtain a Tax Account
Number (TAN) for
income taxes deducted at
source from the
Assessing Office in the
Mumbai Income Tax
Department
7 days
INR 57 (INR 50 application fee +
12.36% service tax)
9*
Register with the Office
of Inspector, Shops, and
Establishment Act
(State/Municipal)
2 days
INR 6,500 (INR 2000 + 3 times
registration fee for trade refuse charges)
10*
Register for Value-Added
Tax (VAT) at the
Commercial Tax Office
(State)
12 days
INR 5,100 (registration fee INR 5000 +
stamp duty INR 100)
11*
Register for Profession
Tax at the Profession Tax
Office (State)
2 days No cost
12*
Register with Employees’
Provident Fund
Organization (National)
12 days No cost