Before recording any accounting transactions, you must create a company in Tally Prime. All accounting data, inventory, GST details, and financial reports are stored inside the company.
Lesson Objective:
Learn how to create a company correctly in Tally Prime.
1. What is a Company?
A Company in Tally Prime is a separate business database where all accounting and inventory records are stored.
Each business should have its own company.
Examples:
ABC Medical Store
XYZ Garments
Soopro Pathshala
Sharma Traders
Star Electronics
2. Why Create a Company?
Company Creation helps organize all financial records separately.
Purpose
Benefit
Accounting
Maintain Accounts
Inventory
Track Stock
GST
Tax Management
Payroll
Employee Salary
Reports
Balance Sheet & P&L
3. Steps to Create a Company
Open Tally Prime.
Select Create Company.
Fill in all required company details.
Configure security options.
Save the company.
Shortcut:
Alt + K → Create Company
4. Company Information Screen
While creating a company, Tally asks for several details.
Field
Description
Company Name
Name of Business
Mailing Name
Name printed on invoices
Address
Business Address
State
Business State
Country
Country Name
PIN Code
Postal Code
Mobile
Business Contact
Email
Email Address
5. Example of Company Details
Field
Example
Company Name
Soopro Pathshala
Address
Satyendra Nagar Road No.1, Aurangabad
State
Bihar
Country
India
PIN
824101
Mobile
7070175088
Email
info@soopropathshala.com
This information appears on invoices, vouchers, and business reports.
6. Financial Year & Books Beginning Date
While creating a company, Tally Prime asks for two important dates.
Field
Meaning
Financial Year Begins
Starting date of the financial year.
Books Beginning From
Date from which accounting entries will start.
Example
Financial Year Begins : 01-04-2025
Books Beginning From : 01-04-2025
If your business started later, you can choose a different Books Beginning date.
7. Base Currency Information
Every company must select its base currency.
Option
Example
Currency Symbol
₹
Formal Name
Indian Rupee
ISO Code
INR
Decimal Places
2
For Indian businesses, the default currency is Indian Rupee (₹).
8. Security Control
Security Control protects your company data from unauthorized access.
Create an Administrator.
Set a strong password.
Allow only authorized users.
Restrict sensitive operations.
Protect financial information.
Always use a strong password containing letters, numbers, and special characters.
9. GST Details During Company Creation
If your business is registered under GST, enable GST while creating the company.
Field
Example
Enable GST
Yes
Registration Type
Regular
GSTIN
22AAAAA0000A1Z5
State
Bihar
If your business is not registered for GST, you can enable GST later from Company Features (F11).
10. Accept & Save Company
After entering all company information, verify every detail carefully before saving.
Check Company Name.
Verify Address.
Confirm Financial Year.
Check GST Details.
Verify Mobile & Email.
Press Ctrl + A to Accept.
Shortcut:
Press Ctrl + A to save the company quickly.
After saving, the company opens automatically and the Gateway of Tally appears.
11. Alter Company Information
Sometimes business information changes after the company has been created. Tally Prime allows you to modify company details without creating a new company.
Steps to Alter Company
Open Tally Prime.
Press Alt + K.
Select Alter Company.
Choose your company.
Update the required information.
Press Ctrl + A to save.
You can update the company name, address, mobile number, email, GST details and other information anytime.
12. Shut Company & Delete Company
Tally Prime provides options to close or permanently remove a company.
Option
Purpose
Shut Company
Close the currently opened company.
Select Company
Open another existing company.
Delete Company
Permanently remove company data.
⚠ Always take a backup before deleting a company because deleted data cannot be recovered easily.
13. Common Mistakes During Company Creation
Mistake
Correct Practice
Wrong Financial Year
Verify dates before saving.
Incorrect Company Name
Use the legal business name.
Wrong State
Select the correct state for GST.
Incorrect GSTIN
Enter the GST number carefully.
No Backup
Create regular backups.
Weak Password
Use a strong administrator password.
A few minutes spent checking company information can prevent major accounting problems later.
14. Practical Exercise & Interview Questions
Practical Exercise
Create a company named ABC Traders.
Enter your own address.
Select the correct financial year.
Enable GST (optional).
Save the company.
Reopen and alter the company address.
Interview Questions
What is a company in Tally Prime?
Why do we create a company?
What is the difference between Financial Year and Books Beginning?
Can company information be altered later?
What shortcut key is used to save a company?
Why is company backup important?
15. Lesson Summary
Learned what a company is in Tally Prime.
Created a new company successfully.
Entered company information correctly.
Configured Financial Year and Books Beginning.
Selected Base Currency.
Configured Security and GST.
Saved the company.
Learned how to alter company information.
Understood common mistakes and best practices.
Congratulations!
You are now ready to start working in Tally Prime by creating Accounting Masters such as Groups and Ledgers.
🧠 Quick Quiz
Which shortcut key is used to accept and save a company in Tally Prime?