Company Registration | Management | Licenses in Daman & Diu

Daman & Diu, a union territory of India, is known for its coastal beauty, industrial hubs, and tax incentives. Located on the western coast, this region offers unique opportunities for businesses in tourism, manufacturing, and trade. With a favorable business environment and growing infrastructure, Daman & Diu provides an ideal setting for various industries. Here are the best locations to start a business in Daman & Diu:

1. Daman

• Why Daman?
  Daman is the industrial and administrative hub of the union territory. It is home to several small and medium-scale industries and offers well-developed infrastructure for manufacturing and trade.
• Best-Suited Industries:
  Manufacturing, textiles, food processing, pharmaceuticals, and tourism.
• Key Advantage:
  Industrial estates, proximity to Gujarat and Maharashtra, and tax incentives for manufacturers.

2. Diu

• Why Diu?
  Diu is a popular tourist destination known for its scenic beaches, heritage sites, and serene environment. It is ideal for businesses in hospitality, tourism, and handicrafts.
• Best-Suited Industries:
  Tourism, hospitality, adventure sports, and handicrafts.
• Key Advantage:
  Growing tourist footfall and opportunities for eco-tourism and luxury resorts.

3. Varkund

• Why Varkund?
  Located near Daman, Varkund is emerging as a residential and commercial hub, with opportunities in retail and small-scale industries.
• Best-Suited Industries:
  Retail, small-scale manufacturing, and logistics.
• Key Advantage:
  Proximity to industrial areas and growing urbanization.

4. Nani Daman

• Why Nani Daman?
  Nani Daman is a bustling part of Daman, known for its commercial activities and proximity to the main industrial estates.
• Best-Suited Industries:
  Retail, real estate, and food services.
• Key Advantage:
  Access to consumer markets and business-friendly infrastructure.

5. Marwad

• Why Marwad?
  Located near the coastal areas of Daman, Marwad is developing as a hub for small businesses and logistics services.
• Best-Suited Industries:
  Logistics, warehousing, and agro-based industries.
• Key Advantage:
  Strategic location near ports and transportation routes.

6. Vanakbara (Diu)

• Why Vanakbara?
  A fishing village in Diu, Vanakbara has potential for businesses in fisheries and seafood processing.
• Best-Suited Industries:
  Fisheries, seafood processing, and marine-based businesses.
• Key Advantage:
  Access to marine resources and government incentives for fisheries.

7. Kadaiya

• Why Kadaiya?
  Located near Daman’s industrial zones, Kadaiya is ideal for small-scale industries and service-oriented businesses.
• Best-Suited Industries:
  Small-scale manufacturing, logistics, and retail.
• Key Advantage:
  Proximity to industrial areas and supportive infrastructure.

8. Jampore (Daman)

• Why Jampore?
  Known for its beach and tourism potential, Jampore offers opportunities for hospitality and adventure tourism businesses.
• Best-Suited Industries:
  Tourism, hospitality, and food services.
• Key Advantage:
  Tourist-friendly location with opportunities for beachside resorts and recreational activities.

Key Advantages of Starting a Business in Daman & Diu:

1. Industrial Base: Presence of industrial estates with a focus on manufacturing and export-oriented units.
2. Tourism Potential: Growing popularity as a tourist destination, especially for eco-tourism and adventure sports.
3. Tax Benefits: Special tax incentives for businesses under union territory regulations.
4. Strategic Location: Proximity to Gujarat and Maharashtra for trade and logistics.
5. Government Support: Policies encouraging industrial growth and tourism development.

Daman & Diu offers immense potential for businesses in manufacturing, tourism, and marine-based industries. Daman is the ideal location for industrial and commercial ventures due to its proximity to major cities and industrial infrastructure, while Diu is perfect for tourism, hospitality, and eco-friendly ventures. Entrepreneurs can leverage the region’s tax benefits, natural resources, and growing infrastructure to establish sustainable and profitable businesses.

Starting a company in Daman & Diu 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 Daman & Diu 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 Daman & Diu 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: