In this article, you’ll learn everything about how to start as a freelancer.
Becoming self-employed in India is a fairly simple process, in general, you only have to carry out 4 fundamental steps:
- Make a formal request.
- Comply with the documentation.
- Create a business bank account.
- Insure your business.
Table of Contents
Basic Aspects To Consider Before Registering As A Freelancer
One of the first steps to follow to become autonomous is to look for information , in this sense, you must take into account the following:
The self-employed fee that you must pay to Social Security is approximately 278 euros per month, however, as it is the first time as a self-employed person.
Once you turn 3 years working as a freelancer you can enjoy some discounts.
The processing process is very simple and in most cases , it only takes 2 days to achieve it.
Make sure you have the electronic ID , this document will help you streamline the process from home.
Once you’ve logged in, make sure you check the checkboxes correctly:
Type Of Service : Select Entrepreneurs.
Management : choose business advice on the ENTREPRENEUR’S single window..
Finally, and like any other appointment, be sure to choose the office closest to your home and an available date.
If you live outside India, you should find the office authorized for this procedure and collect information about it.
Step 2: fill out the form and make sure you have the correct information
After clicking “continue”, the system will generate a form in Excel format, which you must fill out according to the data requested.
Once you have completed this small, but very important step, you should worry about consigning the following documents:
- IAE headings.
- Personal income tax regime.
- VAT.
- CNAE headings.
- Mutual.
- Among others.
Headings Of The Tax On Economic Activities (IAE)
This is a document that you can find on the internet, which corresponds to the type of work you intend to perform, there are 3 different types: Business Activities, Professional Activities and Artistic Activities.
If you intend to work as a regular self-employed person, the most convenient option is to choose the one for Professional Activities, since it groups together workers who are not trying to create a company.
In any case, it is recommended that you stop to investigate a little more about each of the epigraphs and select the one that best suits your objective as a freelancer.
Personal Income Tax Regime
Depending on the type of headings you choose, you will have to carry out one or more procedures, in most cases, you will have to choose between Modules or Simplified Direct Estimation.
The first option corresponds to a fixed payment to the Treasury of a percentage of the income you generate, while the second, points to the Income Tax Declaration, basically it is the income tax declaration every 3 months.
Due License And Tax Regime
After selecting the personal income tax regime , you will notice that there is a box that requests the DUE License, you should not fill it in , unless you are an unusual case.
According to the laws, the Value Added Tax (VAT) established for self-employed workers is 21%.
Time To Deliver The Documents: Are You Ready To Be Freelance?
If at first you were wondering how to become self-employed in India? You will like to know that the last step to become an independent worker is to deliver all your data to the City Hall office closest to your home and that’s it.
Once you complete these procedures, you will be legally recognized as a self – employed person from the city of India.
Keep in mind that there are two ways to get to this instance , via the internet and going together with an authorized agent to a citizen service office.
Once you know all the information necessary to fill out the form (virtual or physical), the next thing is to consign it along with a copy of your ID.
As you can see, it is a very simple procedure, and not a tedious process as many people think.
Create a business bank account and secure your business
Creating a business bank account is one of the best ways to start your freelance cycle.
With this, you can not only protect your sales income, but it will also be the best way to meet your expenses and obligations.
Remember that the payment of the self-employed fee before Social Security must be made through the bank account you have registered.
In the same way, it is advisable to take out civil liability insurance and when you start to earn large sums of money, create a Limited Company (SL).
