Automobile industry is growing in India very fast and India is ready to be the third largest automotive market in the world by 2020. In India “Make in India” scheme launched by the central government which increase the foreign investor in India. Make in India scheme is become successful in India and now Indian market is growing day by day at global level. If you are thinking of starting an automobile company then it is a great idea as automobile industry is growing and soon India will become 3rd largest automotive market in the world. Before starting an automobile company you have to make a business model for your business and you have to conduct a market research so you will know about many things like competitor, cost of production, profit generation and many things about this business so you have to conduct a market research first then you have to make your business model so it will be easy for you to starting your own automobile company. You can start your own private limited company in India and there is minimum required person is 2 member for incorporation and Private limited company has many benefits under the laws and a private limited company is a separate legal entity which can sue or can be sued.
There are some legal registration which is required for your automobile business because without registration you may have to face legal trouble. You have to get incorporation certificate for your private limited company and GST registration is also important because it is required.
Legal registration which is important
As per the companies law you have to register your private limited company under the Ministry of corporate affairs. You can file your incorporation form online or offline. Online procedure of filing form is easy and filing can be done on the website of Ministry of corporate affairs. Process of online filing is easy you have to first apply for the Digital signature certificate for proposed director as it will require for future references so you have to first make digital signature certificate then you have to get Digital identification number for proposed director then you have to reserve your company name through web-run services which is available on the website of Ministry of corporate affairs. You have to choose a name for your company so your company’s name will be registered along with incorporation of company and you cannot copy other company’s name so your name should be unique. Then you have to file your incorporation form and you have to submit the required document along with incorporation form. You have to submit your director identification number, Digital signature certificate, personal and profession documents, memorandum of association and article of association on the website. After verification of incorporation form if everything goes right you will get your incorporation certificate.
If you don’t want to start your automobile business as private limited company then you can start your business as Limited liability partnership firm which enjoy many benefits under the laws like it is a separate legal entity which can sue or can be sued, partner will not liable personally, and it has many benefits so you can start your own LLP firm. An LLP firm can be started with minimum 2 members and you have to register you LLP under Ministry of corporate affairs. LLP registration can be done through online or offline mode. You can file your incorporation form on the website of ministry of corporate affairs and you have to submit the documents like partnership deed, personal and profession details of partners.
Nowadays GST registration is most required in India because without GST registration is mandatory for those business whose turnover is more than 10 lakh rupees and in case failure of registration you may have to face punishment of imprisonment or fine or both. GST registration is required because after registration you will get a GST identification number and you have to write these identification number on your sell invoice. So you should register your business under GST.
If you are thinking of starting an automobile business in India then you should conduct a market research so it will give you an idea about this business and it will you in making of business plan. As you can see above that business registration is also important and GST registration is important for filing indirect taxes so you should consider the above given points before starting your business.