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Guide for Chartered Accountants to Start Practice


SANJAY KUMAR GANNA

2015-03-20

I Completed CA, I studied hard and made it successfull in my first Attempt. I was working as article assistant in a Proprietory CA firm. Now i am deciding to Practice but there are so many Acts Rules etc. I have knowledge of some Theory and Many things which i never studied and couldnot practices as i was working only in front of DESKTOP.like : how to get PAN ? i never read in any Book and did not got PAN for someone, How to Register under Sales Tax ? As it is State Act i did not read as it was not important for clearing the Exam and in office i filed VAT Returns, I know what are the forms to be filed but i don't know what are the documents to collect from the Client?

Are you a Student or Professional either Qualified or Unqualified ?

Do you have future plans to set up office or Grow your Office then Refer below:

There are some questions for which we have to search everytime and there is no ready available Material here I am providing a ready to refer Material which will definately help you in your practice.

Getting PAN Card

Application for obtaining PAN is  Form 49 (PAN Application form)

Documents required in case of individuals to obtain PAN are:

  1. Copy of Document acceptable as proof of identity(Voter ID/ Passport/ Aadaar card etc),
  2. Proof of Address(Ration card/Driving License/Passport etc)
  3. Proof of date of birth (SSLC marks Card/Passport etc.)

Documents required in case of obtaining PAN for minor:

  1. Copy of Document acceptable as proof of identity(Voter ID/ Passport/ Aadaar        card etc),
  2. Proof of Address(Ration card/Driving License etc)
  3. Proof of date of birth (Birth Certificate Born after Year 1992

Documents required in case of HUF:

  1. An affidavit by the Karta of the Hindu Undivided Family stating the name, father's name and address of all the coparceners on the date of application; and
  2. Copy of any document applicable in the case of an individual specified above, in respect of Karta of the Hindu undivided family, as proof of identity, address and date of birth.

Documents required in case of Partnership firms:

  1. Partnership deed; or
  2. Certificate of Registration issued by the Registrar of Firms

Documents required in case of Limited Liability Partnership/Company

  1. Certificate of Registration issued by the Registrar of LLPs./Company

Documents required in case of Trust

  1. Trust deed; or 
  2. Certificate of registration number issued by Charity Commissioner.

Documents required in case of Association of persons (other than Trusts) or Body of Individuals or Local authority or Artificial Juridical Person

  1. Agreement; or 
  2. Certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority; or 
  3. Any other document originating from any Central or State Government Department establishing identity and address of such person.

Getting Registration Under Sales Tax Karnataka (VAT)

Procedure and documents required for VAT registration in Karnataka in detail:

i. Submit an application for VAT in Form 1 Online along with the following documents to the local VAT office:

  1. Central Sales Tax registration certificate under Section 7(1)/7(2) of Central Sales tax act, 1956 (Form A)
  2. Professional tax registration certificate (Form 2)

Copy of important documents such as:

Documents of company/Establishment

  1. Rent agreement of business place
  2. Electricity bill of rented premises
  3. Pan card of Company
  4. Vat registration certificates of other states where company is already registered.

 Documents of directors:

  1. Address proof
  2. Id proof (PAN Card)
  3. Two photos directors
  4. Domicile certificate of directors
  5. Rent agreement or House tax receipt in case directors are from Karnataka.
  6. Four PassPort size photographs of the Proprietor/Partner/Director
  7. PAN No. & Bank Account No of the Proprietor/Partner/Director
  8. Details of business activities
  9. Partnership deed (in case of a partnership firm)
  10. Memorandum of Association and Articles of Association (in case of a Private Limited company)

ii. The authorities from the local VAT office will inspect the premises of where you conduct business within a prescribed time

iii. Once the inspection is over, you will have to pay a specified fee to the local office for your VAT registration 

iv. On payment of the fee, a TIN number will be allotted to you for your business and you will also be given the VAT registration Certificate.

Getting Services Tax Registration

  1. Print out of the filled ST-1 form Online duly signed by the  Director/partner/proprietor/authorized person at the end of the application.
  2. Copy of PAN Card of the assessee.
  3. Documents Required for the premises for which registration is sought; Proof of Address: Any one of the following:
    • In case of self-owned property, any document like Annual Property tax payment return/receipt showing name of applicant, or copy of sale deed etc. may be provided. Or
    • In case of a rented premises, Lease License/rent agreement or rent receipt of Registered Co. Op. Housing Society. Or
    • In any other case, NOC (No objection certificate) from either the owner of property or the person in whose name the rent or lease agreement has been made along with evidence of ownership/tenancy as the case may be.
  4. Memorandum of Association/Partnership deed as per Companies Act, 1956, if applicable.
  5. Power of attorney would be required in respect of authorized person(s) by the Partner/Proprietor/Director of the firm. In the case of a company, submit Board Resolution.

Getting registered under partnership firm

(i) Under Section 58 of the Act, a firm may be registered at any time ( not merely at the time of its formation but subsequently also ) by filing an application with the Registrar of Firms of the area in which any place of business of the firm is situated or proposed to be situated. 

Application shall contain:-

  1.  Name of the firm
  2.  Place or principal place of business
  3. Names of any other places where the firm carries on business.
  4. Date on which each partner joined the firm
  5. Name in full and permanent address of partners.
  6. Duration of the firm 

Application shall be signed and verified by all the partners or their duly authorized agents.

Application shall be accompanied by prescribed fee as well as the following documents:

  1. Prescribed Registration Form for Incorporation of a Company.
  2. Certified true copy of the Partnership deed on Stamp Paper entered into.
  3. Ownership proof of the principal place of business

Name of the firm should not contain any words which may express or imply the approval or patronage of the government except where the government has given its written consent for the use of such words as part of the firms name.

(ii)    Under Section 59 of the Act, when the Registrar of Firms is satisfied that the provisions of section 58 have been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration.

Forming a LLP (Limited Liability Partnership)

Minimum requirements

  1. Minimum 2 partners
  2. Minimum 2 designated partners (1 of the designated partner should be an Indian resident)
  3. If a body corporate is a partner, it has to nominate a natural person of its nominee.
  4. the partners and the designated partners can be same person
  5. there is no concept of share capital, but there has to be some sort of contribution from each partners
  6. DPIN (Designated Partner Identification Number) for all the partners.
  7. DSC (Digital Signature Certificate) for one of the Designated partner.

Procedure/ steps involved in formation of LLP

  1. Documents required for DSC (Self attested):
    1. Address Proof
    2. Identity Proof  
    3. Documents required for DPIN
      1. Apply for DPIN and get provisional DPIN
      2. Certification/ Attestation of Director’s Personal details
      3. Sending the same to the MCA cell and getting it approved.
      4. Pre name application search
        1. The promoters have to provide atleast 6 names in order of priority
        2. To make an online search of availability of names as desired by the promoter
        3. Application for name availability (to draft the main object to be pursued by the LLP after incorporation)
          1. Filing of form 1
          2. 6 names of the proposed company
          3. Main object clause
          4. Representation before RoC on behalf of promoters (Changes to be made in the name application, if any, suggested by the RoC)
      5. Documents required for incorporation of an  LLP
        1. LLP agreement
        2. Form 2 (statement by promoter)
        3. Form 3 (information regarding the LLP agreement)
        4. Form 4 & Form 9 (Notice of consent & Appointment of Designated partner with their personal details
        5. Subscription sheet signed by the promoter
        6. Duly stamped LLP agreement
        7. Proof of address of registered office
      6. Final process
        1. Filing all the above documents with the ROC , follow up with the ROC
        2. Making changes in LLP Agreement/ other incorporation documents as suggested by ROC

Formation Of Private Limited Company

  1. Documents required for DSC (Self attested):
    1. Address Proof
    2. Identity Proof  
    3. Documents required for DPIN
      1. Apply for DPIN and get provisional DPIN
      2. Certification/ Attestation of Director’s Personal details
      3. Sending the same to the MCA cell and getting it approved.
    4. Pre name application search
      1. The promoters have to provide atleast 6 names in order of priority
      2. To make an online search of availability of names as desired by the promoter
      3. Application for name availability (to draft the main object to be pursued by the LLP after incorporation)
      4. Filing of form 1
      5. Names of the proposed company
      Drafting of Memorandum of association and Articles of association
      1. MOM covers fundamental provision of the company’s constitution. It covers main object and other objects of the company
      2. AOA contains rule and regulations governing the internal management of the company.
      Filing of e-form with ROC
      1. Form INC – 7: For application of incorporation of the company
        1. MOM
        2. AOA
        3. Declaration by professional in INC -8
        4. Affidavit from subscriber to the Memorandum in Form INC 9
        5. Proof of residential address
        6. Proof of identity
        7. verification of signature of subscribers i.e Form INC 10, in the case of company not having share capital
        8. it is mandatory to attach entrenched AOA if any of the articles are entrenched.   
        9. Copy of in principle approval granted by RBI or any concerned authority in case proposed company shall be conducting Nonbanking financial institution activities.

10. NOC in case of change in the promoter

11. Proof of nationality in case of the subscriber in case of foreign nationality

12.  PAN Card in case of Indian nationality

13. Copy of incorporation of foreign body corporate and proof of registered office address.

14. certified true copy of board resolution / consent by all the partners authorizing to subscribe to MOA

  1. Form INC-22 : For Notice of situation of registered office
    1. Proof of registered office address
    2. Copies of utility bills
    3. No objection certificate or permission to use
    4. Certificate of E-form INC -22 by CS/CA/CWA
    5. Form DIR -12: For providing information about particulars of appointment of directors of the company and key managerial personnel
      1. Letter of appointment
      2. Declaration by first directors in Form INC-9
      3. Declaration of the appointee directors, managing directors, in form DIR-2
      4. Payment of ROC fees & Stamp duty
      5. Verification of documents / forms by ROC
      6. Issue of certificate of incorporation of ROC

Getting Registered to Professional Tax

Registrations required under the Act

All businesses in Karnataka regardless of whether they employ 1 or 1000 persons are required to register their business under this Act.

Business’s have two types of licensing under the Karnataka Professions, Trades, Callings and Employment Act. One to enroll it’s business as a legitimate undertaking and Second to be eligible as an employer, whereby the business is obliged to make deductions from monthly salaries and remit as also file monthly and Annual Returns with the professional tax Authorities.

Two application Forms are to be duly completed with supporting authenticated documents to make an application for business enrollment and license to employ. They are Form 1 and Form 2 as prescribed by the PT Act.

Typically the jurisdiction of the PT Officer is based on the locality in which the business is housed from.

Documents & Information to support the Application

  1. Certificate of Incorporation, in case of companies
  2. MOA and AOA in case of companies/Partnership deed in case of partnership firm
  3. List of Directors/Partners with the details of Name, residential address, photo (2 passport size copies)
  4. Identity proofs for directors/Partners like, driving licenses, passport, ration card, election card with photos
  5. List of employees with their gross salary details
  6. If the directors are not promoters of the company, copy of Form-32 filed with ROC towards appointment as directors
  7. If there is any change in the address of the company, copy of Form-18 filed with ROC
  8. If the place of business is a leased premises, lease agreement
  9. If the place of business is in a own building, tax paid receipt copy
  10. Fee of Rs.2,500/- towards Profession Tax for the company
  11. Monthly return in Form-5A along with Profession tax deducted from the employees salary, if any.
  12. Copy of pan allotment letter/PAN card
  13. Copy of Bank statement from the date of establishment of the business.

Information required for filling in the content of Form 1 and Form 2

  1. Name of the Company
  2. Full Postal Address
  3. Class of Employer – Individual/Partner/Firm/Company/Corporation/Society/ Club and Association/Others Specify
  4. Status of the person signing the application – Proprietor/Partner/Principal Officer/Agent/Managers/Director/Secretary/Others specify
  5. Date of Birth and Age –
    1. In case of individuals – Date of Birth and age
    2. In case of Companies – Date of incorporation
    3. In case of other organizations – Date of commencement of business
    4. Nature of Business –
    5. Period of standing in the business – number of years and months
    6. Number of other places of works with address
    7. Annual turnover of all sales/purchases
    8. Number of workers engaged in the factory
    9. Number of employees in the establishment
    10. If Co-operative society – State level/District level/Taluk level
    11. Number of Vehicles for which permit under M.V. Act is held – 3 wheelers/ Trucks/Buses
    12. Enrolment number of previous certificate, if any
    13. Ground on which revision, if any, is sought

Getting Importer Exporter Code

Applying for new IEC number ? Kindly fill Part A, B & D of ANF 2

  1. One copy of the application must be submitted. 
  2. Each individual page of the application has to be signed by the applicant. 
  3. Application must be accompanied by documents as per details given below:
    • Demand Draft of Rs.250 evidencing payment of application fee in favor of the concerned Money can also be paid through Electronic Fund Transfer (EFT).
    • Certificate from the Banker of the applicant firm in the specified format.
    • Self certified copy of Permanent Account Number (PAN) issued by Income Tax Authorities.
    • Two copies of passport size photographs of the applicant.
    • Photograph on the banker’s certificate should be attested by the banker of the applicant.
    • Self addressed envelope and stamp of Rs. 30.
    • These documents may be kept secured in a file cover.

The above documents may be sent by post or hand delivered at the concerned.

CA Pulkit Sharma

2015-03-21

Great work Sanjay Ganna. This information will be of much help to lot of CA's thinking to start their practice and specifically in Karnataka.

Reply

sunit chhatbar

2015-04-11

good work

Reply