Company Registration | Management | Licenses in Arunachal Pradesh

Starting a company in Arunachal Pradesh involves several costs, including government fees, professional services, and other expenses. Here's a breakdown of the typical costs associated with registration of various types of entities in the state:

1. Government Fees
   

• Digital Signature Certificate (DSC): Required for signing documents electronically. The cost per DSC is approximately ₹1,000 to ₹2,000.
• Name Approval Fee: Charges for reserving a business name are usually around ₹1,000.
• Stamp Duty: The stamp duty depends on the type of business structure and authorized capital. For basic setups, it can be approximately ₹1,000.
• Registration Fee: The government fee for business registration depends on the business type and scale, with charges varying accordingly.

2. Professional Fees

• Consultancy Services: Hiring professionals for assistance with legal and administrative processes may cost ₹5,000 to ₹15,000, depending on the complexity of the registration and services offered.

3. Other Expenses

• Notarization and Attestation: Certain documents may require notarization, which typically costs ₹500 to ₹1,000.
• PAN and TAN Application: Businesses need a PAN and Tax Deduction and Collection Account Number (TAN). These applications may incur additional fees of around ₹200 each.

• Business Structure: The costs will vary based on whether the business is a proprietorship, partnership, LLP, or company.
• Authorized Capital or Investment Scale: Higher investment thresholds may attract additional fees.
• Registered Office Address: If you don't have a registered office, renting one will involve additional costs.

Managing a company in Arunachal Pradesh involves various ongoing expenses to ensure compliance with legal requirements and smooth operations. Below is an overview of the typical costs associated with managing a company in the state:

1. Annual Compliance Costs:
   
• Statutory Audit: Every company, depending on its structure, must have its accounts audited annually by a chartered accountant. Audit fees vary based on the company's size and complexity, typically ranging from ₹10,000 to ₹50,000.
  
• Annual Return Filing: Filing annual returns with the Registrar of Companies (ROC) or relevant authority is mandatory. Professional fees for this service generally range from ₹5,000 to ₹15,000.
  
• Financial Statements Filing: Submission of financial statements to the ROC or other designated bodies is required. Costs for this service usually fall between ₹5,000 and ₹15,000.
  
2. Tax Compliance Costs:
   
• Goods and Services Tax (GST) Returns: Companies registered under GST must file regular returns. Professional fees for GST return filing can range from ₹1,000 to ₹5,000 per return, depending on transaction volume.
  
• Income Tax Returns: Filing annual income tax returns is mandatory for all entities. Professional fees for this service generally range from ₹5,000 to ₹20,000.
  
3. Other Compliance Costs:
   
• Director/Owner Identification Filing: Key individuals of the company may be required to file identification updates annually. Costs typically range from ₹500 to ₹1,000 per individual.
  
• Maintenance of Statutory Registers: Companies must maintain statutory registers and records. Professional assistance for this can cost between ₹2,000 and ₹10,000 annually.
  
4. Additional Operational Costs:
   
• Book-Keeping and Accounting Services: Outsourcing bookkeeping and accounting can cost between ₹5,000 and ₹20,000 per month, depending on the complexity and volume of transactions.
  
• Payroll Processing: Managing payroll, including compliance with labor laws, Provident Fund (PF), and Employee State Insurance (ESI) regulations, can cost between ₹2,000 and ₹10,000 per month.
  




Estimated Total Annual Cost:
Considering the above components, the total annual cost for managing a company in Arunachal Pradesh typically ranges between ₹50,000 and ₹200,000. This estimate may vary based on the company's size, transaction volume, and specific compliance requirements.

Additional Considerations:

• Company Size and Complexity: Larger companies or those with complex operations may incur higher compliance and management costs.
• Industry-Specific Compliances: Certain industries may have additional compliance requirements, impacting overall costs.




It is advisable to consult professionals at TAXAJ to obtain an accurate estimate tailored to your company's specific needs.

Secretarial compliance refers to the legal and regulatory requirements that companies in India must follow under the Companies Act, 2013, and other applicable laws. These ensure smooth operations, transparency, and good governance. Below are the key secretarial compliances every company should be aware of:

1. Annual General Meeting (AGM)
   Companies must hold an AGM within six months of the end of the financial year. The gap between two AGMs should not exceed 15 months. Proper notices, agendas, minutes, and resolutions should be prepared and documented.

2. Filing of Financial Statements
   Form AOC-4 must be filed by companies to submit financial statements with the Registrar of Companies (RoC) within 30 days of the AGM. Depending on the company’s category, filings can be in XBRL, non-XBRL, or IND AS XBRL formats.

3. Filing of Annual Return
   Form MGT-7 or MGT-7A must be filed within 60 days of the AGM. Small companies and One Person Companies use MGT-7A, while other companies use MGT-7.

4. Board Meetings
   Companies should conduct at least four board meetings in a year, with no more than 120 days between two consecutive meetings. Notices, agendas, minutes, and resolutions must be recorded and maintained.

5. Maintenance of Statutory Registers
   Every company must maintain important registers, including the Register of Members, Register of Directors and Key Managerial Personnel, Register of Charges, and Register of Contracts or Arrangements in which Directors are Interested.

6. Appointment and Reappointment of Auditors
   The first auditor must be appointed within 30 days of incorporation. Reappointment of auditors is generally done in the AGM. Form ADT-1 must be filed with the RoC within 15 days of the auditor's appointment.

7. Event-Based Filings
   Specific events require filings with the RoC. These events include changes in directors or key managerial personnel, changes in the company’s name or registered office, an increase in share capital, and share allotment or transfer.

Consequences of non-compliance include monetary penalties based on the duration and type of non-compliance, legal action for prolonged violations, and reputational damage, which can affect the company’s image and business opportunities.

Best practices for compliance include maintaining a compliance calendar to track important dates and deadlines, conducting regular audits to ensure everything is on track, hiring professionals such as company secretaries or legal advisors for guidance, and using compliance tools or software to automate reminders and document maintenance.

Following secretarial compliance is essential for smooth business operations and avoiding legal issues. Proactive planning and regular updates ensure companies remain compliant with Indian laws.

Ongoing compliance is critical to avoid penalties and maintain smooth operations. Our services include managing any entity you opt for and cost of the same can vary between given range:

Starting and operating a business in Arunachal Pradesh requires compliance with various state-specific licenses and registrations. These ensure that businesses adhere to local regulations and operate legally within the state. Below is an overview of key licenses and registrations applicable in Arunachal Pradesh:

1. Trade License

• Purpose: Authorises businesses to operate within a specific municipal limit, ensuring compliance with local laws and safety standards.
• Issuing Authority: Municipal Corporation or Municipality of the area where the business is located.
• Application Process: Applications can be submitted online through the Commissioner and Director of Municipal Administration (CDMA) portal or at designated municipal offices.

2. Shops and Establishments Registration

• Purpose: Regulates working conditions, hours of work, payment of wages, and other employment aspects for businesses operating within the state.
• Issuing Authority: Labour Department of Arunachal Pradesh.
• Application Process: Registration is mandatory within 30 days of commencing operations and can be done online through the state's Labour Department portal.

3. Value Added Tax (VAT) Registration

• Purpose: Applicable to businesses dealing with goods and services not covered under the Goods and Services Tax (GST).
• Issuing Authority: Commercial Tax Department of Arunachal Pradesh.
• Application Process: Registration is required for businesses dealing in specific goods and can be completed online.

4. Pollution Control Board Clearance

• Purpose: Ensures that businesses comply with environmental regulations concerning air, water, and noise pollution.
• Issuing Authority: Arunachal Pradesh Pollution Control Board (APPCB).
• Application Process: Industries must obtain consent to establish and operate, which involves submitting detailed information about the business processes and pollution control measures.

5. Fire Department NOC

• Purpose: Certifies that the business premises comply with fire safety regulations.
• Issuing Authority: State Fire Services Department.
• Application Process: Businesses, especially those in manufacturing, hospitality, and public entertainment, must apply for a No Objection Certificate (NOC) by submitting building plans and safety equipment details.

6. Food Safety License

• Purpose: Mandatory for businesses involved in the manufacturing, processing, storage, distribution, and sale of food products.
• Issuing Authority: Food Safety and Standards Authority of India (FSSAI).
• Application Process: Registration or licensing can be done online through the FSSAI portal, depending on the size and nature of the business.

7. Drug License

• Purpose: Required for businesses engaged in the manufacturing, distribution, and sale of pharmaceuticals.
• Issuing Authority: Drugs Control Administration, Government of Arunachal Pradesh.
• Application Process: Applications must be submitted with details of the premises, qualified personnel, and storage facilities.

8. Liquor License

• Purpose: Necessary for businesses involved in the manufacturing, sale, or distribution of alcoholic beverages.
• Issuing Authority: Prohibition and Excise Department, Government of Arunachal Pradesh.
• Application Process: Applicants must meet specific criteria and submit detailed information about the business and premises.

9. Factory License

• Purpose: Applicable to manufacturing units to ensure compliance with the Factories Act regarding worker safety and health.
• Issuing Authority: Department of Factories, Government of Arunachal Pradesh.
• Application Process: Businesses must submit plans, machinery details, and safety measures for approval.

10. Agricultural Produce Market Committee (APMC) License

• Purpose: Required for businesses involved in the trading of agricultural produce.
• Issuing Authority: State Agricultural Marketing Board.
• Application Process: Traders must register and obtain a license to operate within designated market yards.

11. Electricity Department Clearance

• Purpose: Ensures that the business premises have a sanctioned electricity load and comply with electrical safety standards.
• Issuing Authority: Arunachal Pradesh Southern Power Distribution Company Limited (APSPDCL) or Arunachal Pradesh Eastern Power Distribution Company Limited (APEPDCL), depending on the location.
• Application Process: Applications for new connections or load enhancements must be submitted with details of electrical installations.

12. Building Plan Approval

• Purpose: Mandatory for constructing new buildings or making significant alterations to existing structures.
• Issuing Authority: Municipal Corporation or Urban Development Authority.
• Application Process: Submission of detailed building plans, structural designs, and adherence to zoning regulations are required for approval.

13. Import Export Code (IEC)

• Purpose: Essential for businesses engaged in importing or exporting goods and services.
• Issuing Authority: Directorate General of Foreign Trade (DGFT).
• Application Process: Applications can be submitted online through the DGFT portal with necessary business and bank details.

14. Registration under the Micro, Small, and Medium Enterprises (MSME) Act

• Purpose: Provides recognition and benefits to small businesses under the MSME Development Act.
• Issuing Authority: Ministry of Micro, Small and Medium Enterprises.
• Application Process: Registration can be done online through the Udhyam Registration portal.

Important Considerations:

• Timely Compliance: Ensure that all necessary licenses and registrations are obtained before commencing business operations to avoid legal complications.