Every startup has to operate under various laws to regulate trade and service in view of tax to be collected from such activities. With the issuance of certificate of incorporation a legal entity is created which is capable of being identified separately from that of the people who promoted the entity.
Some of the mandatory registrations based on the nature and location of business is discussed here, However on the basis of actual business transactions additional licenses may be required to be obtained, such licenses are discussed separately, these are
Company is assessed separately from its owners by the income tax department. Pan is an unique identification number allotted by Income Tax Department Some states like Maharashtra, Karnataka etc has imposed tax on employment as professional tax. Registration and payment of tax is mandatory. The DGFT allots a unique code to persons engaging in the business of foreign trade by way of import or export. While making payment to third parties tax has to be deducted as TDS at specified rate. TAN number id the unique number of TDS detector. In most of the states it is mandatory and non-compliance results into severe penalty which may lead to registration of a criminal case. In most of the states it is mandatory and non-compliance results into severe penalty which may lead to registration of a criminal case.
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