Understanding the technicalities of Company Registration in India, its dos and don’ts is quite difficult and as per a fair research is done, I can give you an understanding on how this works in simple terms.
Like many young and energetic to be entrepreneurs, I too had a dream of starting my own business. Getting the thought to start itself is a big idea, but to move further was the real challenge.
Upon starting the groundwork there were many things to be understood and a lot of processes involved and one of the major ones is to get the Company Registration in India to be done.
Now, as a layman, I was trying to understand what Company Registration is and how to go about it. By getting in touch with Company Registration Consultants to get my company registered I can throw some enlightenment on this topic.
Let me take you on a detour on what all you need to understand before doing Company Registration in India.
What is Company Registration?
In India, if you are starting a business it is mandatory to give it a legal recognition and this can be done with Company Registration. If your company is registered then you stand to get quite a few benefits like funding, Government benefits, legal benefits and many more.
Many individuals today will start a company but are unaware of the legal glitches. They have the thought of starting with a marvelous idea, but not sure how to start, when to start and what all goes in the formation of a company.
Once the business is started the problems crop like the various licenses required, taxation policies, GST compliances and more. Here is when you need to get the Company Registration done which is the first step towards the proper formation of your company and also a green signal that you’re ready to start the business legally.
Few advantages you derive through Company Registration in India:
Your personal assets are safeguarded as the liability is limited to the extent of investments done by Directors or Shareholders
A registered company has its own legal entity which is distinct from its members
Transferring of the shareholdings of the business is simple and easy as the shares are limited to the company
A company once registered, has a lifetime existence in spite of the quitting or also the death of members until and unless it is wound up as per the provisions of law
It’s easy to open a bank account when a company is registered
Obtaining funds is made easy when a company is registered as Private Limited, Limited Liability Partnership or One Person Company
Taxation Compliances are more relaxed for registered companies
Any legal issues have escalated; the registered company has a better advantage than a non registered company.
Types of Company Registration in India
To get a company registered firstly you need to understand that there are certain types of registrations prevailing and also to choose according to the business type, the size of the business and the revenue generated from the business. Few of the important types of registration available are:
Public Limited Company Registration
One Person Company
Partnership Firm Registration
Though there are different types of registrations, Private Limited Registration is one of the most sought-after business registrations in India. More than 7000 companies get registered under this category in India. The business class prefers this kind of registration because:
The process involved is very simple
Can be started with a minimum of 2 members only
Compliances are lesser
Personal assets of the members are safeguarded
Can be started with a minimum amount of capital
Perpetual existence though there is demise or exit of the members
But this is only the greener side of Pvt Ltd Registration, we also need to understand the disadvantages which include:
The cost involved for formation and dissolving of Pvt ltd company is costly
Applying the names of the company is complicated
Even if the involvement of one of the Director is not much still it requires the consent of both Directors in running the business
Post incorporation process and compliances are cumbersome like the annual filings, tax filings, meetings, etc.
The number of shareholders or investors is confined to only 50 members
Similarly, One Person Company, Public Limited Company or Limited Liability Partnership or Proprietorship firm registrations have their own advantages and disadvantages.
How to select a Registration for your company?
The most crucial part is to select the right kind of business registration. You just can’t blindly go in for a registration, you need to understand what type of registration is required. Do your bit of research and see what kind of Company Registration is suitable. If it a small business with a minimal turnover then you can opt for Proprietorship or GST Registration, if it’s only one member operating the business then you can go in for One Person Company Registration, if you have a good turnover and need to add more members to the business then its best to go for a Private Limited Company Registration.
To understand the concept of Company Registration from scratch I approached company registration consultants in India wherein I got all the answers and took the right choice of getting my company registered.
Aavana Corporate Solutions, Company Registration Consultants in Bangalore has a professional team who will explain to you what kind of business registration is required based on the nature of the business you operate. Just because Private Limited Company Registration is what everyone asks for and involves more amount, they don’t prescribe it, instead, they would suggest a better option which will suit the client budget and requirement.
How to get your company registered?
There is a systematic approach followed to get a company registered and Aavana makes it all the more easy and fruitful in the following manner:
Fill in a simple basic information document
Submit your required documents
Apply for the name approval process
Generating your Digital Signature Certificate
Filling up the incorporation documents like the DIR and INC forms
Proceed towards the incorporation process
Preparing MOA and AOA
Final incorporation Certificate handover
Hope this article has thrown some useful insights into Company Registration and you would take the right step in building your dream and successful business.