If you are starting a new venture or looking to grow your business, you may be considering starting a company. Although registering a company can seem like a big step, there are also many benefits in trading under a company structure. In this article, we will outline the some benefits of registering your company and how this can see your business soar.
Importance of Company Registration
Private Limited Company Registration is the process of creating a legal entity for your business. This means that your business will be separate from you personally, and you will have limited liability. This means that you are not personally liable for the debts and liabilities of your business.
What are the benefits of registering your Company in India?
Following are some vital benefits of registering your company in India:
- Legal Protection: Limited liability protects personal assets.
- Credibility: Enhances trust with clients, suppliers, and partners.
- Access to Funding: Easier to secure loans or investment.
- Tax Benefits: Potential tax deductions and advantages.
- Perpetual Existence: Continuity beyond the founder’s involvement.
- Brand Protection: Safeguards your company name and identity.
- Facilitates Hiring: Attracts talent and makes hiring easier.
- Compliance: Ensures adherence to legal and regulatory requirements.
Company registration process in India
The company registration process in India is relatively simple and can be completed online. The following are the steps involved:
- Choosing the Right Business Structure: The first step is to choose the right business structure for your business. The most common business structures in India are sole proprietorship, partnership, and private limited company.
- Selecting a Company Name: Once you have chosen the right business structure, you need to select a company name. The company name must be unique and cannot be the same as the name of any other existing company.
- Apply for the Digital Signature Certificate (DSC): A DSC is a digital signature that is used to authenticate electronic documents. You can apply for a DSC from any licensed certification authority.
- Apply for the Director Identification Number (DIN): A DIN is a unique identification number that is issued to individuals who intend to become directors of companies in India. You can apply for a DIN online.
- Filing the e-MoA (INC-33) and e-AoA (INC-34): The e-MoA and e-AoA are the documents that set out the constitution of the company. You can file the e-MoA and e-AoA online.
- Apply for the company to be registered: Once you have filed the e-MoA and e-AoA, you need to apply for the company to be registered. You can apply for company registration online.
- Issuance of Certificate of Incorporation: Once your company has been registered, you will be issued a Certificate of Incorporation. The Certificate of Incorporation is the official document that certifies the existence of your company.
- Apply for PAN and TAN of the company: Once you have received the Certificate of Incorporation, you need to apply for a Permanent Account Number (PAN) and Tax Account Number (TAN) for the company. You can apply for a PAN and TAN online.
Registering your company can be one of the best ways you can expand your business and help ensure its success. Not only will you be free of liability, but lower tax rates will mean that you can focus on turning your business into the lucrative venture you want it to be. If you are unsure which business structure is right for you, a business lawyer can help you determine which option is right for you.