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How to create Company in tally erp 9?

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The first thing you should do for accounting in tally erp 9; after installation and activation is that creation of a company in tally erp 9. Company creation means similar to creating a set of books for accounting for a business in manual accounting. In computerized accounting of tally erp 9 we call it company creation where voucher entry happened and reports are generated. In computerized accounting you need to enter daily transactions into the accounting software; and the reports are generated automatically. You don’t need to post each and every transactions into ledgers.Let’s see how to create company in tally.

Steps to create company in tally erp 9

When you open tally erp 9, first time after installation, the screen appear as

Company info menu

In the right hand side, you will find a menu called company info menu, Use the arrow keys to move through this menu.

Select Create Company, Hit enter Key, The company creation screen will appear.

Directory : C:\Users\Public\Tally.ERP9\Data

This is the default directory of tally data base location. You can change it if you needed. In ‘Data’ Folder all company data stored in separate folder.The folder name is a number starting with 10000 for second company 10001 and so on.

Name : Enter Name of Your Company, For example Reliance Pvt Ltd. 

Company creation

Primary Mailing details

  • Mailing name: Same as in most cases
  • Address : The address of the registered office office of  your business. A registered office is the official address of an incorporated company, association or any other legal entity. This address is printed in the invoices and other reports.
  • Country : India , There are 46 countries listed in tally. If your country is not listed use New from the list and add your country. If country selection is not required, You can choose None from the list This should be correct for getting  accurate GST report if you are doing import export business.

list of countries

If you want to create China as a country  select New, Enter china and save

new country

  • State : Delhi,This is also important for a GST registered company. For recording purchase and sales invoice , For automatic calculation of CGST & SGST, IGST The state shall be accurate.
  • Pin code: Enter the pin code of your business’s local post office.

Primary mailing details of company creation screen

Contact details in company creation of Tally erp 9

The contact details is to be printed in the invoices , and reports. enter Phone number, Mobile,Fax No, Email,Website address etc.

Contact details

Books & Financial Year Details.

Financial Year in India starts at April 1,You can enter the Book beginning date .This may differ,some times business starts in the middle of the Financial year. 

Books and financial year details of a company

Security Control

At the time of company creation there are some security measures have been entered.

  1. Tally vault Password ( if any):  enter a strong password with numbers and special characters. This will encrypt your data and become unreadable to Unauthorized users. 
  2. CAUTION: Forgetting the password will render your data in accessible.
  3. Use Security control : By enabling this ,you can control the use of tally erp 9 by various staff. You can allow or deny certain features to certain staff / users only. Only administrators can control view and use full features of tally erp 9.
  4. Use Tally Audit features : This will allow administrator the privilege of an auditor and can track the changes made by the users.
  5. Disallow opening in Educational Mode: The company will load if Tally erp 9 is in Educational mode.

Security control in tally erp 9 company creation

Base Currency Information

  • Base Currency Symbol : This will automatically selected in accordance with country selection above. You can change it manually by typing on it.
  • Formal Name : The formal name of currency symbol above
  • Suffix Symbol to amount : This will add a currency symbol at the end  on every amount you entered in tally.
  • Add space between amount and symbol: This will add a space between amount and symbol if enabled.
  • Show amount in millions: In the reports the amount shows in millions.
  • Number of decimal places :  The decimal places for Indian Paisa is 2.
  • Word representing amount after decimal : For India it is Paisa, you can manually add this ,In Egypt it is Qirsh.
  • Number of decimal places for amount in words: If you set this yes only the first decimal is printed, For example for 15 paisa, print  ten paisa the second decimal ignored..


Create company step by step


  • Tally erp 9 Latest Version is 6.4.9 at the time of writing this article.
  • Duplicate company cannot be created in the same name of this company again.

Creation of a composition company under GST

This is just a confusion among tally erp 9 users. You can create a company in the same steps of above. For getting composition company feature you have to do the following.

Gateway of Tally>F11 features>F3 Statutory

Enable Goods & Service tax (GST) : Yes

Set/alter GST details: Yes

In the GST details screen

Registration type  : Composition 

Composition company creation

And save the screen. 

How to create a manufacturing company ?

Company creation is same for all types of company.There are some options need to be activated .They are.

Gateway of tally > F11 Features > F1 Accounting features

Maintain accounts only : No

Now you have to create a manufacturing journal voucher type.

Gateway of Tally>Accounts info>Voucher Types>Create

Create manufacturing journal as shown below.

manufacturing company journal

Now create a Bill of Material.

Gateway of Tally >Inventory Voucher > Stock Journal ( Alt + F7 )

From the list you can select manufacturing Journal to manufacture a product.

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