Legal Formalities Required For Starting A Cleaning Business
It is not a rocket science to start a new business. There are many entities according to which a business can be defined. These include the sole proprietorship, Limited Liability Company, partnership or a corporation. Needless to say, each of the entities has to follow different set of tax rules as well as have to complete different kinds of legal formalities. In this article, we shall list down the various formalities that you need to complete in order to establish a business in the cleaning industry.
Incorporation of your company
Approval of the Company name
This is the first step towards getting your company name registered. You have to get the name of your company approved. It takes about a week to get that kind of approval. There various kinds of forms that you need to complete in order to get your company name approved to form a corporation and get the name of your company registered. You also need to suggest a minimum of two names alternate to your proposed name for your company. The names and the respective addresses of the members of the company must also be submitted. You need to state the amount of capital that is authorized for the company to invest.
Main objects of the Company
When you submit the application, it is under a scrutiny by the body called as the Registrar of the Companies (ROC). The ROC is supposed to send the business owner its decision about the approval/ objection with in the 10 business days.
Identification number issued to the Director
It is mandatory that the Directors of an Indian company, whether it be the Indian citizens or the foreigners must register their name and address and get a unique identification number for the same. It is an online application form that needs to be filled and what you are supposed to be getting is called the Director Identification Number (DIN)
There needs to be a proof of residence and other duly attested documents that are to be gazette by a notary authority in India. All the documents pertaining to the same must be sent in order to the offices that are designated by the ROCs.
Digital signature Certificate (DSC)
Directors for an Indian cleaning company are supposed to get a digital signature certificate. It applies to both Indians as well as foreign citizens.
Memo and Articles
A memorandum states the main as well as the ancillary and subsidiary and the other aspects that are related to the company. Then there are these Articles which contain the rules and the procedures that are defined for the routine conduction of business of a cleaning company. There is memorandum which is also the document which states what the authorized share capital is and also the names of the directors of the companies. The memorandum and the articles also need to be stamped. The duty on the stamp depends again on the share capital that has been authorized for the cleaning company to operate it business.
Note that the memorandums and the articles are such that there needs to be an execution of them by the bodies which are their own promoters. This should be done in the presence of a witness who has to willingly give their name, proof of address and other related info in front of an attorney.
You need to operate on a license when you conduct any form of business and cleaning business is not an exception. A cleaning company needs to get various licenses regarding the acquiring of licenses for handling the heavy machinery, tools, chemicals, cleaning dyes etc. for the cleaning purposes. It is illegal to operate even without a single license no matter what the duration of their expertise is and what is the level of professionalism displayed by these companies. There are various kinds of fees that are applicable for various licenses. The license acquired in such a case is valid for a fixed amount of time like a few years and hence the license should be compulsorily renewed after this duration to continue operating the cleaning business legally.
There also needs to be an employee check who works under the business of a cleaning company. The employee checks are mandatory and are used for ensuring that the employees have cleared the various background checks that are required for working under a cleaning business. Also, it checks the authenticity of the employees being skilled and trained towards working as cleaners in a business that caters cleaning requirements of their clients.
Income tax compliance
Every business should be equipped with a Permanent account number (PAN) for deduction of taxes to be paid to the Indian government for conducting business in India. There also needs to be an account number filed so that the Income Tax Department can deduct the taxes automatically. The cleaning businesses are free from paying sales taxes and the value added taxes because they do not sell any product. In fact, they just contain the servicemen.
Thus we have explored the various legal formalities that need to be followed in order to conduct a cleaning business.
Related directory categories
Home Cleaning Products
Home And Garden > Cleaning Services
Carpet Cleaning Services
Carpet Cleaning Equipment
Industrial Cleaning Equipment
Window Cleaning Products
Floor Cleaning Machines
Window Cleaning Services
Related business articles
- Getting Started With Carpet Cleaning Business
- Different Types Of Businesses Involved In Carpet Cleaning Industry
- How To Start Dry Cleaning Business?
- Best Ways To Market And Advertise Cleaning Business
- How Popular Is Window Cleaning Services Business?
- Is Office Cleaning Business Profitable?
- How To Start With Vehicle Cleaning Business?
- How To Earn Profit In Home And Garden Cleaning Business?
- Various Ways To Sell Cleaning Products
- How To Start Floor Cleaning Business?
- Guide To Choose The Best Cleaning Service Company
- How To Start A Janitorial Cleaning Service Business?
- What Is Eco-Friendly Cleaning Business?
- How To Start Pool Cleaning Business?
- Home And Garden Business