Company Creation in Tally Prime

Create Sunrise Retail Pvt Ltd in Tally — every field explained with F11 features setup

Module 2 of 31 — Tally Prime. Hands-on practice creating Sunrise Retail Pvt Ltd in Tally Prime — every field in the company creation form, enabling GST via F11, and managing multiple companies. 45 minutes.

Prerequisites: Module 1 — Introduction to Tally Prime

Learning Objectives

Create a company in Tally Prime with all fields correctly filled
Enable GST and other relevant features via F11
Understand what each field in company creation means
Alter company details after creation
Select, load, and manage multiple companies

Creating a Company — Step by Step

When you open Tally Prime for the first time, a prompt appears to create a company. You can also create one at any time:

// In Tally Prime
Gateway of Tally → Company → Create Company
(Or: Alt+F3 → Create Company)

Section 1 — Basic Information

Name:        Sunrise Retail Private Limited
             (Legal name as per MCA registration)

Primary Mailing Name:  Sunrise Retail Pvt Ltd
             (Short name used on invoices and reports — can differ from legal name)

Address:     Plot 45, Second Floor
             Madhapur Main Road
             (Up to 3 lines — press Enter after each line)

Country:     India

State:       Telangana
             (Select from dropdown — auto-fills GST State Code: 36)

PIN Code:    500081

Phone No:    040-XXXXXXXX

Mobile No:   9876543210

Email:       info@sunriseretail.in

Website:     www.sunriseretail.in (optional)

Section 2 — Books and GST

Financial Year Beginning From:   01-Apr-2025
             (Indian FY always starts April 1)

Books Beginning From:            01-Apr-2025
             (Date from which transactions can be entered)

Tally Vault Password:            (Leave blank — for data encryption only)

Enable GST:  Yes
             (Activates GST features throughout Tally)

GST details (appear after setting Enable GST to Yes):

GSTIN/UIN:          36AACCS1234A1ZP
Registration Type:  Regular
                    (Others: Composition, Consumer, Unregistered)

Applicable from:    01-Apr-2025

Section 3 — Statutory Details

Set/Alter Company TDS Details:   No  (skip — covered in advanced modules)
Enable Payroll:                  No  (covered in Module 24)

Completing Company Creation

// In Tally Prime
→ Press Ctrl+A to save
→ Tally creates the company data folder automatically
→ Gateway of Tally now shows "Sunrise Retail Pvt Ltd" as the active company

F11 — Company Features

F11 (Company Features) is the control panel for your Tally company. This is where you enable or disable entire modules.

// In Tally Prime
From Gateway of Tally → Press F11
(Works from anywhere in Tally — F11 always opens Company Features)

F11 → Accounting Features

ACCOUNTS AND FINANCIAL FEATURES

Integrate Accounts and Inventory:     Yes
  (Tally links purchases/sales with inventory automatically)

Income/Expense Statement:             Profit & Loss A/c

Allow Multi-Currency:                 No  (enable when needed)

Maintain Bill-wise Details:           Yes
  (CRITICAL — tracks each invoice separately for outstanding management)

Activate Interest Calculation:        No

Use Debit/Credit Notes:               Yes
  (Enables Debit Note Alt+F8 and Credit Note Alt+F9 vouchers)

Use Reversing Journals:               No

Maintain Cost Centres:                No  (enable in Module 20)

Maintain Budget and Controls:         No

F11 → Inventory Features

INVENTORY FEATURES

Enable Inventory:                     Yes
  (Must be Yes for Sunrise Retail — they track stock)

Enable Purchase Order Processing:     Yes
Enable Sales Order Processing:        Yes

Use Multiple Godowns/Locations:       Yes  (covered in Module 13)

Allow Negative Stock:                 No
  (Good data integrity — prevents stock going below zero)

Use Batch Numbers for Inventory:      No

Enable Manufacturing Journal:         No

F11 → Statutory and Taxation

STATUTORY FEATURES

Enable Goods and Services Tax (GST):  Yes

GST Details:
  GSTIN: 36AACCS1234A1ZP
  Applicable from: 01-Apr-2025
  Periodicity of GST Returns: Monthly

Enable Tax Deducted at Source (TDS):  No  (for later modules)

Enable Payroll:                       No  (enable in Module 24)

// In Tally Prime
→ Press Ctrl+A to save all F11 settings

Sunrise Retail — Complete Company Creation Walkthrough

Sneha Reddy creates Sunrise Retail in Tally Prime on April 1, 2025

ASCII Screen: Tally Prime — Create Company

┌──────────────────────────────────────────────────────────────┐
│  Tally Prime                               Create Company     │
├──────────────────────────────────────────────────────────────┤
│                                                               │
│  Name                  : Sunrise Retail Private Limited       │
│  Primary Mailing Name  : Sunrise Retail Pvt Ltd              │
│  Address               : Plot 45, Second Floor               │
│                        : Madhapur Main Road                   │
│                        :                                      │
│  Country               : India                               │
│  State                 : Telangana                           │
│  PIN Code              : 500081                              │
│  Phone No              : 040-XXXXXXXX                        │
│  Mobile No             : 9876543210                          │
│  Email                 : info@sunriseretail.in               │
│                                                               │
│  Financial Year        : 01-Apr-2025                         │
│  Books Beginning From  : 01-Apr-2025                         │
│  Tally Vault Password  :                                      │
│                                                               │
│  Enable GST            : Yes                                  │
│    GSTIN/UIN           : 36AACCS1234A1ZP                     │
│    Registration Type   : Regular                              │
│    Applicable From     : 01-Apr-2025                         │
│                                                               │
│                                          Accept ? (Ctrl+A)   │
└──────────────────────────────────────────────────────────────┘

Key Sequence

// In Tally Prime
1. Alt+F3 → Create Company  (opens the form above)
2. Fill each field → Tab to move to next
3. State: select Telangana → state code 36 auto-fills
4. Enable GST: Yes → GSTIN field appears → type 36AACCS1234A1ZP
5. Ctrl+A → company saved
6. Press F11 → enable Bill-wise Details, Inventory, verify GST
7. Ctrl+A → F11 settings saved

Field Reference

Field	Value	Why It Matters
Name	Sunrise Retail Private Limited	Appears on all statutory documents
Primary Mailing Name	Sunrise Retail Pvt Ltd	Short form on invoices
Address Line 1	Plot 45, Second Floor
Address Line 2	Madhapur Main Road
State	Telangana	Determines CGST+SGST for local sales
PIN	500081
Email	info@sunriseretail.in
FY Beginning	01-Apr-2025
Books Beginning	01-Apr-2025
Enable GST	Yes
GSTIN	36AACCS1234A1ZP	State code 36 = Telangana
GST Registration Type	Regular

Company Alteration — Changing Details After Creation

// In Tally Prime
Gateway of Tally → Company → Alter
(Or: Alt+F3 → Alter Company → select company → make changes → Ctrl+A)

Important: Changing the Financial Year Beginning date or State has system-wide implications. Only do it when genuinely required.

Managing Multiple Companies

Many accountants manage 5–20 companies in one Tally installation.

Loading a Company

// In Tally Prime
Alt+F3 → Select Company → Arrow keys to select → Enter
(Or: Alt+G → type company name → Enter)

Switching Between Companies

// In Tally Prime
Alt+F3 → shows list of all loaded companies → select different one

The active company is always shown in the Tally header. Multiple companies can be loaded simultaneously.

Splitting Company Data

Use when performance slows on a large multi-year data file:

// In Tally Prime
Company → Split Company Data
→ Select split date: 01-Apr-2025
→ Tally creates:
   "Sunrise Retail Pvt Ltd (Till 31-Mar-2025)" — historical
   "Sunrise Retail Pvt Ltd (From 01-Apr-2025)" — current FY

Opening balances from the split date carry over automatically.

Deleting a Company

// In Tally Prime
Alt+F3 → Select Company → Alt+D (Delete) → type company name to confirm → Enter

Warning: Company deletion is permanent. Always take a backup first:

// In Tally Prime
Ctrl+Alt+B → Data backup

The articled clerk who lost three months of GSTR data

A first-year articled clerk at a small CA office was asked to "clean up" Tally — a partner's instruction to remove a few dummy companies created for testing. The clerk pressed Alt+F3 → Delete, typed the company name, hit Enter. Wrong company. He'd just deleted the active client's data — three months of GSTR-1 entries, all reconciliations, every voucher since April. No backup had been taken that morning. The firm spent four nights re-entering data from physical invoices, and the partner paid for the GSTR-1 late fee out of his own pocket because the filing slipped. Lesson the whole office learned: Ctrl+Alt+B is not a suggestion. It is the first key you press every morning before doing anything else.

— CA office, Ameerpet — 2024

Practice Exercise

Exercise 1: Create a second company in Tally for "Kiran Electronics" (Kiran's sister's business). Name: Kiran Electronics Pvt Ltd, State: Andhra Pradesh, GSTIN: 37AAACK1234B1ZM, FY start: 01-Apr-2025. What state code auto-populates, and which GST applies for intrastate sales?

Show Solution

// In Tally Prime
Alt+F3 → Create Company
Name: Kiran Electronics Pvt Ltd
State: Andhra Pradesh  → state code 37 auto-fills
GSTIN: 37AAACK1234B1ZM
FY Beginning: 01-Apr-2025
Ctrl+A

State Code for Andhra Pradesh: 37
Intrastate sales in AP → CGST + SGST (e.g., both 9% for an 18% GST item)

Exercise 2: Sneha wants to change Sunrise Retail's address from Madhapur to a new office in Jubilee Hills. What steps does she take?

Show Solution

// In Tally Prime
Alt+F3 → Alter Company
→ Select: Sunrise Retail Pvt Ltd
→ Change Address Line 1/2 to new Jubilee Hills address
→ Ctrl+A to save

Note: The change applies to new transactions. Historical invoices retain the old address.

Key Terms

Term	Meaning
Company Master	The company information record in Tally
F11	Company Features — enables/disables Tally modules
Books Beginning From	The date from which transactions can be entered
Financial Year Beginning	1st April for Indian companies
Alt+F3	Company management — create, select, alter, close, split
Ctrl+Alt+B	Data backup shortcut
Split Company Data	Separate a company's data at a date — usually at FY end
Tally Vault	Optional password-based encryption for company data

Checklist — you're ready to proceed when you can:

Create a new company in Tally Prime with the correct FY start date (01-Apr-2025)
Enter Sunrise Retail Pvt Ltd with GSTIN 36AACCS1234A1ZP and state Telangana
Open F11 and enable: Bill-wise Details (Yes), Inventory (Yes), GST (Yes)
Verify GSTIN in F11 → Statutory matches the company creation entry
Use Alt+F3 to switch between two loaded companies
Explain the difference between "Financial Year Beginning" and "Books Beginning From"

Check Your Understanding

In Tally Prime, which shortcut opens the Company Features screen?
Sunrise Retail's Financial Year Beginning From should be:
To enable GST in Tally Prime, which field must be set to Yes during company creation?
Sneha accidentally deleted Sunrise Retail's company data. What should she have done first?

Next up → Module 3: Tally Prime Shortcut Keys — complete keyboard reference for voucher entry, navigation, and reports.

Company Creation in Tally Prime

On this page