Digital Signature
Udyog Aadhaar
Import Export Code
FSSAI Registration
Trade License
Professional Tax
A Digital Signature Certificate (DSC) establishes the identity of the sender while filing or sending documents electronically through the internet. Similar to how a handwritten signature establishes the identity and/or consent of the signee in a paper document, a digital signature certificate establishes the identity and/or of the signee in electronic documents. In India, all Government Departments accept digitally signed documents from CCA like eMudhra, Sify, N-Code, etc.
Document Required for Digital Signature (DSC)
The documents required to apply for digital signature differs based on the applicant type as follows:
Documents Required for Indian Nationals
In case the applicant is an Indian National, please submit the following documents for identity and address proof:
Identity Proof
Passport
PAN Card of the Applicant
Driving Licence
Post Office ID Card
Bank Account Passbook containing the photograph and signed by an individual with attestation by the concerned Bank official
A photo ID card issued by the Ministry of Home Affairs of Centre/State Governments
Any Government-issued photo ID card bearing the signatures of the individual
Address Proof
AADHAAR Card
Voter ID Card
Driving Licence (DL)/Registration Certificate (RC)
Water Bill (Not older than 3 months).
Electricity Bill (Not older than 3 Months)
Latest Bank Statements signed by the bank (Not older than 3 Months)
Service Tax/VAT Tax/Sales Tax registration certificate
Property Tax/ Corporation/ Municipal Corporation Receipt
Documents Required for Foreign Nationals
In case the applicant is a Foreign National, please submit the following documents for identity and address proof:
Identity Proof
Attested copy of Applicant Passport
Attested copy of VISA (If the applicant is out of the native country).
Attested copy of Resident Permit certificate (If the applicant is in India)
Address Proof
Attested copy of Applicant Passport
Attested copy of any other Government-issued Address Proof
The identity and address proof of foreign nationals must be attested by the following authorities:
Embassy of Native Country (If the applicant is out of the native country)
Apostilized by Native Country, after Public Notary (if the country is in Hague Convention)
Consularized by Native Country, after Public Notary (if the country is not in Hague Convention)
Udyog Aadhaar or MSME registration is a certificate provided to micro, small, medium-sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED). Udyog Aadhaar used to be referred to as MSME registration earlier. Now, the process for obtaining MSME registration has been merged with Udyog Aadhaar registration and made online by the Government
Documents Required for Udyog Aadhaar
The applicants personal Aadhaar is the main requirement for obtaining Udyog Aadhaar in case of a proprietorship. No further documents are required other than an email and a mobile number.
If an applicant or authorised signatory of a business does not have Aadhaar, then he/she must first apply for Aadhaar at an Aadhaar enrolment centre. Once, the Aadhaar is obtained, the Udyog Aadhaar process can be started.
Import Export (IE) Code is a registration required for persons importing or exporting goods and services from India. IE Code is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India. IE Code application must be made to the Directorate General of Foreign Trade along with the necessary supporting documents. Once, the application is submitted, DGFT will issue the IE Code for the entity in 15 – 20 working days or less.
IE Code Exemption
An Import Export Code is required for import of any type of goods by a business. However, the following category of persons are exempted from obtaining an IE Code:
Applying for IE Code
Para 2.08 of the Handbook of Procedure contains provisions relating to the application for IE Code. Vide public notice no. 27/2015-2020 dated 8th August 2018, the said para under-went an amended and the provisions of the amended para as applicable with regard to the application for IEC is provided hereunder –
Address Proof
It must be noted that the above documents in support of address proof need to be in the name of the firm, however, in case of a proprietorship, the address proof in favour of an individual (i.e. proprietor) is acceptable (Trade notice No. 39/2018-19 dated 12th December 2018).
Documents Required for IE Code Application
The following are the documents required for making an IE Code application in India.
Proprietorship
Partnership firm
LLP or Private Limited Company or Section 8 Company
- Digital Photograph (3x3cms) of the Designated Partner/Director of the Company signing the application
- Copy of PAN card of the applicant entity.
- Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving License/ PAN (any one of these) of the Managing Partner/Director signing the application.
- Certificate of incorporation as issued by the RoC
- Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity or telephone bill.
- Bank Certificate as per ANF 2 A(I)/Cancelled Cheque bearing preprinted name of the company and A/C No
Society or Trust
HUF
Bank Proof
It is has been clarified vide Trade Notice No. 39/2018-19 dated 12th December 2018 that a cheque without a pre-printed name of the account holder will not be acceptable. Further, the pre-printed cheque can be of savings account or current account. It is to be noted that the above-referred documents need to be uploaded online in digital format-GIF, JPEG and the document size should not exceed 5MB.
The Food Safety & Standards Act, 2006 introduced to improve the hygiene and quality of food has brought about tremendous changes in the food industry. As per the Act, no person shall commence or carry on any food business except under a FSSAI license or FSSAI registration. Therefore, any food manufacturing or processing or packaging or distributing entity is now required to obtain a FSSAI License or Registration.
FSSAI Registration
FSSAI registration is required for all petty food business operator. Petty food business operator is any person or entity who:
Petty food business operators are required to obtain a FSSAI registration by submitting an application for registration in Form A. On submission of a FSSAI registration application, the registration should be provided or application rejected in writing within 7 days of receipt of an application by authority.
FSSAI License – State
Any person or entity that does not not classify as a petty food business operator is required to obtain a FSSAI license for operating a food business in India. FSSAI license is of two types, State FSSAI License and Central FSSAI License. Based on the size and nature of the business, the licensing authority would change. Some of the types of entities that require FSSAI state license are:
FSSAI License – Central
Large food manufacturers / processors / transporters and importers of food products require central FSSAI license. Some of the types of entities that require FSSAI central license are:
A place of business within a State, Corporation or Municipality will require a trade license from the concerned State Government or Corporation or Municipality for operating. Rules and regulations pertaining to trade license varies from state to state. Hence, to obtain trade license, the applicant must first understand the jurisdiction under which he/she is operating the business and the applicable Act.
In most states, the application for grant or renewal of license will be made to a Commissioner in the Corporation. The application must be made within 30 days of starting to operate a business. On applying with the required information and documents, the concerned Officer will ensure that the business is suitable for the purpose used, there is no possibility of danger or nuisance for any person around and issue the license. Trade license would normally be issued within a period of 7-15 days on submission of application. IndiaFilings can help you obtain trade license for your business. Get in touch with an IndiaFilings Advisor to know more about the rules and regulations applicable for your business and begin the process of applying for a trade license
Important Aspects Relating to Trade Licens
Application
Trade license application must be made to the concerned State Government or Corporation or Municipality. The jurisdiction and procedure for application would differ based on the State regulations.
Verification
In some State, the trade license would be issued only after in-person verification from the concerned authorities. However, many states have also done away with the requirement.
Processing Time
The normal processing time for trade application is 10 – 15 days subject to Government processing time. The certificate can be downloaded online after approval.
Validity
In most states, trade licenses are issued with a validity of 1 year. Trade license can be renewed at the end of each year by paying the renewal fee.
Professional Tax
Professional Tax Registration and Compliance
Professional tax is a tax levied by the State government. Professional tax is levied on income however earned in any trade and is usually remitted by the Employer. The stipulations attached to professional tax, caps the total professional tax payable in respect of any one person to the State or to any local authority in the State by way of taxes on professions, trades, callings and employments to Rs.2500 per year.
Introduction to Professional Tax
Professional tax is just like Income Tax except for the fact that Income Tax is collected by the Central Government and Professional Tax is collected by the State Government. When this tax was first introduced in India, the maximum limit on the tax to be collected was Rs. 250.
Some of the State Governments have represented that the earlier celling of two hundred and fifty rupees which was fixed in 1949, needs to be revised upwards taking into consideration the price rise and other factors. It is also pointed out that the profession tax has, at present, become almost regressive because of the ceiling since even people with high salaries have to pay this tax at only the maximum amount of two hundred and fifty rupees per annum. The upward revision of profession tax to Rs.2500 per year has helped the State Governments in raising additional resources.
Professional Tax Rate
The maximum amount payable per annum towards professional Tax is INR 2,500. The professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from his/her income every month by the employer. The state governments of the following states have levied professional Tax – Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. In case of salaried and wage-earners, professional tax is liable to be deducted by the Employer from the salary/wages and the Employer is liable to deposit the same with the state government. In case of other class of individuals, the tax is liable to be paid by the person himself.
Employer’s Responsibility for Professional Tax
The owner of a business is responsible for deducting professional tax from the salaries of his employees and paying the amount so collected to the appropriate government department. He/she has to furnish a return to the tax department in the prescribed form within the specified time. The return should include proof of tax payment. In case the payment proof is not enclosed, the return would be deemed incomplete and invalid.
Professional Tax Registration
Professional tax registration application must be submitted to the State’s tax department within 30 days of employing staff in a business. If there is more than one place of work, the application must be made separately to each authority as regards the place of work coming under the jurisdiction of that authority.
Delay in obtaining professional tax registration certificate can lead to a penalty of Rs. 5/- per day. In case of non/late payment of profession tax, the penalty will be 10% of the amount of tax. In case of late filing of returns, a penalty of Rs. 300 per return will be imposed.
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