Post Incorporation Registration/Statutory Registrations
Goods and Service Tax Registration (GST)
GST simply means the tax applicable on all good sold and services provided. GST Registration is a process by which a taxpayer gets himself registered under GST and obtains a unique 15 digit number known as the Goods and Services Tax Identification Number (GSTIN).
Anyone selling good or providing service need to register for GST as follows:
| GSTIN is mandatory | For sale of goods | For turnover of more than Rs 40 lacs |
| GSTIN is mandatory | For supply of services | For turnover of more than Rs 20 lacs |
A Company take voluntary registration also, if turnover is less than the prescribed limit.
SAS recommend an entity to obtain GST registration as it recognises them as an authentic seller of goods/ provider of service and also helps in collecting & claiming GST.
Import Export Code (IEC)
An Importer -Exporter Code (IEC) is a key business identification number which mandatory for export from India or Import to India. No export or import shall be made by any person without obtaining an IEC unless specifically exempted. For services exports however, IEC shall be not be necessary except when the service provider is taking benefits under the Foreign Trade Policy.
Shop and Establishment
Shop and Establishment Act varies from state to state. However, majority of the provisions remains the same.
A company is required to obtain this registration as per its State laws if it falls under establishment which includes shops, commercial establishments, residential hotels, restraint, eating houses, theatres, or other places of public entertainment and also those establishments as notified by the State government in the official gazette or falls under shop which means any place or premises where goods are sold and services rendered to customers.
Professional Tax
It’s a tax on professions, trades, and employment based on their income. At times its mis understood as tax on professionals, but that’s not the case
Professional Tax is a state matter and accordingly varies from state to state.
An entity need to register for professional tax because as employer, it’s the Company who is person responsible to deduct and pay professional tax to the State Government
Provident Fund (PF)
Provident Fund is an employee benefit scheme in which both employer and employee makes monthly contribution in employee’s PF account. This amount is owned by that particular employee and can be used/withdrawn as per allowed limits for his benefit.
A company need to register for PF if it employees more than 20 persons. Once registered, the Company need to deposit the PF contribution/ amount with the PF department.
SAS recommend entities to register for PF as it’s a employee welfare scheme. Company having PF as part of payroll gives employees more sense of security. That’s why PF is generally provided by all government and private sector employers
Employee State Insurance (ESI)
ESI is employee health benefit scheme. This scheme provides medical benefits to employee and its family through employer.
A Company need to register for ESI if its an establishment employing 10 or more persons. In ESI Employer shall submit ESI on behalf of Employee share of ESI & Company share of ESI towards their employee & the Employee share is deducted from their salary or wages. However, amount id deducted only for those employees whose wages are less than 21000/- per month.
Companies can register for ESI or can provide medical allowance or in fact provide employees with a heath insurance.
SAS recommend entities to provide employees with a health insurance as it serves as best health facility for employees and best tool for employers to attract & retain employees.
Gratuity
Gratuity is an employee welfare scheme. Gratuity is a benefit that an employee receives as a token of appreciation for his services to a company or organization. It is a kind of 'gratitude' amount that the company gives its employee. It is usually paid at the time of retirement but it can be paid before provided certain conditions are met.
A Company need to register for gratuity if it employees more than 10 persons. Also, its payable only to those employees who has employee has rendered a continuous service of not less than 5 years.
SAS recommends that an entity shall provide gratuity benefits to its employees because it recognises them as an employer which takes cares of the welfare & benefits of the employees. It helps the company in attracting and retaining employees.
Appointment of Registrar and Transfer Agent (RTA) for public companies
Since, September 2018 all unlisted public companies can issue shares only in demat form.
Demat form means that physical shares/ share certificates will not be issued. Rather an electronic entries of shares issues/ transferred will be made in demat account of the shareholders.
Accordingly, a public company need to engage a RTA which provided and maintains all these facilities of issuing and transferring shares electronically.
