How to Create a Company in Tally: A Complete Step-by-Step Guide

In today’s fast-paced business world, managing accounts manually is neither practical nor safe. This is why thousands of businesses trust Tally, India’s leading accounting software, to handle bookkeeping, GST compliance, payroll, inventory, and more — all in one place.

But before you can generate invoices, record transactions, or file GST returns, you must complete the first and most critical step: creating a company in Tally.

In this detailed blog, I’ll take you through a clear, step-by-step process to create a company in TallyPrime or Tally ERP 9, along with practical tips and best practices. By the end, you’ll be ready to take charge of your accounts — confidently and error-free.

Why Creating a Company in Tally Matters

Think of your Tally Company as the digital head office of your business. It stores all your ledgers, vouchers, statutory details, and financial reports in one place.

Without creating a company, you can’t record transactions, generate invoices, or maintain your books. That’s why this step is the foundation of smooth accounting operations.

Prerequisites: What You Need Before You Start

Before you open Tally, keep these details handy:

• Official business name (as per registration)

• Registered address

• GSTIN (if you’re registered for GST)

• PAN number

• Financial Year Start Date (usually 1st April in India)

• Books starting date (same as Financial Year unless you’re migrating mid-year)

• Contact details (email, phone)

Pro Tip: Double-check your statutory details (GSTIN, PAN) — errors here can cause compliance headaches later.

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Step-by-Step: How to Create a Company in Tally

Below is the detailed process, equally applicable to TallyPrime and Tally ERP 9.

Step 1: Open Tally

• Launch the TallyPrime or Tally ERP 9 icon on your desktop.

• Wait for the Gateway of Tally to load.

• If you’re using the educational version for practice, no worries — the process is the same.

Step 2: Choose ‘Create Company’

• On the main menu, you’ll see:

  • Create Company

  • Select Company

  • Alter Company

• Highlight Create Company and press Enter.

• Shortcut: Press Alt + F3 → Company Info → Create Company.

Step 3: Fill in Basic Company Details

You’ll now see the company creation form. Here’s what to fill in, field by field:

Directory:
This is where your company’s data is saved on your system. Default is fine unless you want to change the folder for backup.

Name:
Your legal company name (as per registration).

Mailing Name & Address:
This will appear on invoices and reports. Include full address and pin code.

Country & State:
Select your country (e.g., India) and your registered state. This is crucial for GST.

Contact Details:
Enter telephone, mobile, email, and website (optional).

Step 4: Financial Year & Books Beginning

• Financial Year Begins From: For Indian businesses, this is usually 1-April. Example: 1-Apr-2024.

• Books Beginning From: Normally same as financial year. Enter a later date only if you’re starting mid-year or migrating from another system.

Step 5: Enable Security Control (Recommended)

Tally allows you to protect your company data with usernames and passwords.

• Enable Security Control? — Choose Yes.

• Create an Administrator username and password.

• This keeps your accounts safe, especially if multiple users access Tally.

Step 6: Statutory Details (GST, TDS, VAT)

Tally will ask if you want to enable statutory features:

• Enable GST? — Yes if you’re registered.

• Enter:

  • GSTIN

  • PAN

  • Registration type

  • Applicable state and jurisdiction

You may also see options for TDS, TCS, VAT, Excise, or Payroll — enable whatever applies to your business.

Not sure what to enable?
Book a Free Demo with our experts and set it up correctly the first time!

Step 7: Save and Accept

Once you’ve filled in all details:

• Press Ctrl + A to save.

• Or navigate to the bottom, select Yes, and press Enter.

That’s it — your company is now ready to use!

How to Open the Company Next Time

When you open Tally next:

• Choose Select Company from the main menu.

• Pick your company from the list.

• Enter the password (if set).

How to Alter or Delete a Company

To Alter:

• Press Alt + F3 → Company Info → Alter.

• Select your company.

• Make changes (address, GSTIN, etc.).

• Save with Ctrl + A.

To Delete:

• Same as Alter → Press Alt + D.

• Confirm deletion.
  (⚠️ Be careful! Deleted companies can’t be restored without backup.)

What Next After Creating a Company?

Once your company is set up, here’s what you should do immediately:

Create Ledgers:
Add ledgers for bank accounts, debtors, creditors, GST duties, and expenses.

Set Up Inventory:
If you sell products, enable inventory and create stock groups and items.

Record Vouchers:
Start recording transactions: sales, purchases, payments, receipts.

Generate Reports:
Access your Balance Sheet, Profit & Loss, GST returns, and more.

Best Practices for Company Management

Take regular backups — save your data on an external drive or cloud.

 Keep your statutory info up-to-date — avoid GST mismatches.

 Update Tally regularly — especially if you use TallyPrime with GST e-invoicing.

Set user roles — limit who can view or edit critical info.

👉 Want to learn this with hands-on practice?
🎓 [Join our Tally Training Program] — practical sessions, live projects, GST setup, and real-time doubt clearing.

Final Words

Creating a company in Tally may seem like a small task — but it’s the first step towards stress-free, digital accounting. Do it right once and you’ll save yourself countless hours of manual work, errors, and compliance worries later.

Thousands of businesses trust Tally to run their daily accounts, manage cash flow, and stay GST compliant — you can too.

✅ Ready to take the next step?

✨ Join our online/offline Tally course and learn to manage your books like a pro!

📞 Call us at 9985023100 or to book your free counseling session today.

🚀 Start your accounting journey with Tally — and grow your business with clarity and confidence!