List of Things Required for Setting up a Business in Mumbai
With its vibrant business environment, Mumbai can give you the perfect base for your business. If you have dreams of becoming an entrepreneur in India, setting up your business in Mumbai is a good idea worth pursuing. Here are the steps you will need to start your business in Mumbai.
Register Your Company
The registration steps will differ based on what type of business you wish to start, such as limited, partnership, etc. In general, here’s a summary of the registration requirements you will need to fulfil:
- Get your DIN (director identification number) and digital signature certificate online
- Reserve your business name online with the Registrar of Companies (ROC)
- Get your company documents stamped either at an authorized bank or the Superintendent
- Obtain your certificate of incorporation from the ROC
- Create a seal
- Obtain a PAN (Permanent Account Number) and TAN (Tax Account Number)
- Get a certificate from the State/Municipal Inspector under Mumbai Shops and Establishment Act
- Register for VAT and professional tax
- Apply for GST registration
- Register with EPF (Employees’ Provident Fund Organization)
- Register for ESIC (Employees’ State Insurance)
To protect your business assets, you should get your business insured via commercial property insurance. Getting employer’s liability insurance is equally vital to compensate for the expenses you may have to bear in case your employees fall ill or get injured at the workplace.
If you plan to establish a healthcare business, it’s wise to have indemnity insurance, which will cover the compensation you give to your customers in case of damages caused because of negligence. For data security, you can opt for cyber insurance.
Find an Office Space
Finding offices on rent or lease in Mumbai is a tiring, long-drawn process. Additionally, traditional office spaces often come with rigid terms and conditions and steep down-payments. You will also need to invest a substantial amount in setting up the IT infrastructure and paying for the utilities and maintenance.
You can consider coworking spaces in Mumbai as alternative options. These plug-and-play offices offer flexible payment plans and have hot desks, dedicated desks, private offices, and meeting/conference rooms to meet your varied needs. You can even scale up or down the space based on your changing business needs.
Hire Employees after Proper Checks and Clear Explanation of Employment Terms
Whatever be the scale of your business, you will need to hire a few employees to set the ball rolling. It’s crucial to run proper background checks to ensure they are who they say they are and have no criminal records.
It’s also important to draft the terms and conditions of employment and hand them over to your employees at the time of onboarding to let them have clarity regarding their roles, responsibilities, salary and perks, organisational discipline, etc.
Ensure Safety at the Workplace
You should take all necessary precautions at the workplace to ensure your employees are safe. You should plan for conducting regular risk assessments, reviewing and updating your safety policies, and identifying potential threats that are equally crucial to minimise accidents and injuries. Training your employees from time to time should be on your to-do list to make them learn how to work safely, thereby making your premises safe.
In addition to the above, make sure to provide your employees with equal growth opportunities. Follow all these steps to set up and grow your business in Mumbai.