Tally Prime starts with a crucial first step: creating and configuring a company profile. Whether you’re a startup, SME, or a large enterprise, this setup Company Creation in Tally Prime) lays the foundation for accurate books of accounts, statutory compliance, and seamless report generation.
✅ Basic Requirements to Get Started
To create and configure a company in Tally Prime, ensure you have the following:
- Tally Prime installed (licensed or in educational mode)
- Basic company details (Name, Address, PAN, GSTIN, etc.)
- Authorized Email & Phone Number (for contact and OTP verifications)
- Type of business (Sole Proprietorship, Partnership, LLP, Pvt Ltd, etc.)
- Accounting period and financial year start
- Admin rights or login credentials to Tally
⚙️ How to Create a Company in Tally Prime
Creating a company is the first operation after launching the software. The system allows you to manage multiple companies simultaneously.
| Step | Action | Quick Shortcut |
|---|---|---|
| 1 | Launch Tally Prime | Double-click on icon |
| 2 | Click on “Create Company” | Alt + K → Create |
| 3 | Fill in company details: Name, Address, State, Country | Tab to move fields |
| 4 | Set financial year & books beginning date | Choose wisely for compliance |
| 5 | Enter contact details and GSTIN if applicable | Auto-validated |
| 6 | Accept configuration and save | Ctrl + A |
💡 Tip: Always double-check your GSTIN and financial period before saving to avoid mismatches.
🛠️ Configuring Company Features in Tally Prime
Once created, configuring company features aligns your accounting environment with your business processes.
| Configuration Area | Key Options | Navigation |
|---|---|---|
| Accounting Features | Enable bill-wise entry, cost centres, multi-currency | F11 → F1 |
| Inventory Features | Enable stock categories, batch-wise details, MRP | F11 → F2 |
| Statutory & Taxation | GST, TDS, TCS, VAT settings | F11 → F3 |
| Payroll & Attendance | Enable employee management | F11 → F4 |
| Security Control | Password setup, user roles | Alt + K → Security |
| TallyVault | Encrypt company data for security | Enabled during company creation or later |
🎯 Best Practice: Enable only relevant features based on your business needs to avoid cluttered screens.
📌 Important Fields Explained
Here’s a breakdown of critical fields during company creation and what they mean:
| Field | Purpose | Example |
|---|---|---|
| Mailing Name | Business display name on invoices and reports | TaxCrux Technologies Pvt. Ltd. |
| State | Determines applicable GST & statutory features | Delhi, Maharashtra, etc. |
| Books Beginning Date | First date of accounting entry | 01-Apr-2024 |
| Base Currency | Used for financial calculations | INR |
| Email & Phone | For authentication, OTPs, and GST integration | info@yourcompany.com |
📈 Business Scenario Chart
“Common Types of Businesses and Their Tally Configuration Needs”
| Business Type | Required Modules | GST | Inventory | Payroll |
|---|---|---|---|---|
| Retail Shop | Accounting + Inventory | ✅ | ✅ | ❌ |
| Consultancy | Accounting Only | ✅ | ❌ | ✅ |
| Manufacturer | Accounting + Inventory + GST + TDS | ✅ | ✅ | ✅ |
| Freelancer | Basic Accounting | ❌ | ❌ | ❌ |
🗂️ How to Alter Company Information
| Step | Action | Quick Shortcut |
|---|---|---|
| 1 | Gateway of Tally → Alt + K (Company) | Alt + K |
| 2 | Select “Alter” | Down Arrow → Enter |
| 3 | Edit details like name, GST, financial year | Tab to navigate |
| 4 | Press Ctrl + A to accept | Ctrl + A |
⛔ Note: Altering Financial Year once transactions are recorded may create issues. Use with caution.
🔐 Activating Security Features
Security is a crucial aspect of business accounting.
- TallyVault Password – Encrypts company data
- User Roles & Permissions – Control access by department (e.g. Sales, Accounts)
- Audit Trail Activation – Monitor changes (if applicable)
🚨 Mandatory for businesses audited under Companies Act or regulated by MCA.
🧾 Example: Company Creation for a GST-Registered Business
| Field | Value |
|---|---|
| Name | ABC Distributors |
| Address | A-122, Industrial Area, Delhi |
| State | Delhi |
| Country | India |
| Financial Year | 01-Apr-2024 |
| GSTIN | 07ABCDE1234F1Z2 |
| Currency | INR |
🎉 Result: All GST-related features like HSN/SAC, tax rate classification, invoice format will be activated.
🔁 How to Switch Between Companies
| Step | Navigation |
|---|---|
| From Gateway of Tally → Press F1 | Shows list of companies |
| Select desired company | Press Enter |
| To shut current company | Alt + F1 |
🧩 Use Cases of Multiple Companies
- Multiple branches
- Financial year segregation
- Personal vs business books
- Separate business units
✅ Key Takeaways
- Create a company with correct GSTIN and books period to ensure compliance.
- Use
F11andAlt + Kto configure features and security settings. - Use user roles for segmented access and protect data with TallyVault.
❓FAQs on Company Creation in Tally Prime
- What is the minimum information needed to create a company in Tally Prime?
→ Name, Address, Financial Year, and Base Currency. - Can I create multiple companies in a single Tally installation?
→ Yes, unlimited companies can be managed. - Is GST mandatory while creating a company?
→ No, it’s optional and can be enabled based on the business. - How can I change the name of a company later?
→ Use Alt + K → Alter and edit the company details. - Is TallyVault password recovery possible?
→ No. Once forgotten, data is inaccessible. - Can I disable features like Payroll and Inventory later?
→ Yes, go to F11 and disable any unused modules. - Can I create company data on a cloud or network drive?
→ Yes, specify the data path during company creation. - Will activating Audit Trail slow down performance?
→ Minimal impact but significantly improves transparency. - Can I import masters from another company?
→ Yes, use Import options in Gateway of Tally. - Is it necessary to input Email and Phone Number?
→ Not mandatory but recommended for authentication and communication.
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