To begin a new company has never been a simple and easy process. Right from making it registered to get it on-board, many things are required for your attention. Lets see about Company Registration.
Choosing the best company structure for your company is just as critical as any other business decision. Your company would be able to run more effectively and achieve its goals if you have the right business structure in place. Any business in India is required to register as part of the legal requirements.
It’s important to choose your company structure carefully because it will affect your income tax returns. Note that each business structure has various standards of enforcement that must be met when registering your company. A sole proprietor, for example, is only required to file an income tax return. A corporation, on the other hand, is required to file an income tax return as well as annual reports with the registrar of corporations.
Although some market models are more investor-friendly than others, investors would still choose to do business with a well-known and legal entity. An investor, for example, may be hesitant to lend money to a sole proprietor. On the other hand, if a successful business concept is supported by a recognised legal system, it has a better chance of succeeding.
Every year, a company’s books of accounts must be audited by law. Following these legal requirements necessitates the hiring of auditors, accountants, and tax filing specialists. As a result, when considering company formation, it is critical to choose the appropriate business structure. An entrepreneur must have a good understanding of the types of legal compliances with which he or she is able to deal.
The patterns of the companies have developed in India, including the rules, laws, and regulations of doing business, and incorporating the same has changed. It is hard to keep a record of these ever-evolving rules and control, hence, choosing company registration services in India is always the correct decision.
Before you begin with the company registration services in India, there are 10 questions that you should know before the registration process:
- Is the company registration Compulsory?
The process of company registration in India is compulsory and managed as one of many business structures. There are a lot of benefits in incorporating the business. Below stated are the most significant ones that you should be aware of:
- Assurance of personal assets
- Payless taxes
- Easier to create retirement plans
- Transferable ownership
- Separate credit rating regardless of an owner’s score
- Increased durability
2. What Is the Role of a Business Owner to Incorporate a Company?
To incorporate a company requires filing incorporation documents with the Ministry of Corporate Affairs or another state company that manages business filings. Each state has its structures, rules, and methods for doing the same. After you have registered incorporation documents, you will get a certificate or other document from the state proving that your company exists.
3. What Type of Documents Are Required for Company Formation?
The documents required during the certification process differs greatly as per the different states in India. But, there exists common information that the states follow to add the following information:
- Details of 2 directors/promoters of the business for getting a DIN (Director Identification Number)
- Date of birth/nationality
- Copy of passport or related identification which will be used as photo identification
- Photograph of the proposed director
- How Many People Are Required to Incorporate a Private Limited Company?
To incorporate a private limited company, a minimum of 2 people are needed. A private limited company must possess at least 2 Directors and up to a maximum of 15 directors. A minimum of 2 shareholders and a maximum of up to 200 shareholders are allowed in a private limited company.
- What Are the Conditions to Become a Director of a Company?
The director’s age should be above 18 years. There are no restrictions in terms of nationality or residence. Hence, even foreign citizens can be administrators or directors in Indian private limited companies.
- What Is the Capital Needed to Begin a Private Limited Company?
You can begin a private limited company with any amount of capital. The fees must be returned to the Indian government for declaring a minimum of shares worth INR. 1 lakh. This rate is used as an approved capital fee during the registration of the company. There is no condition to show the proof of capital spent during the registration method.
- What Is an Authorized Capital Fee?
The authorized capital of the company is the number of shares a company or firm can issue to the shareholders. The companies have to meet the government on an authorized capital fee to issue the shares in a company.
- How Long Will It Take to Start a Company?
The time taken for the enrolment will depend on the submission of proper documents by the customer and the speed of government approvals. To guarantee quick registration, please choose a unique name for your company and make sure you have all the required papers and documents before beginning the registration process.
- For How Long Is the Registration of a Company Valid?
Government confirms the name and allows them if they are satisfied with the title. Once the name is accepted, the promoters need to register the incorporation form within 60 days. This is because the title is valid for 60 days. These 60 days are known as the name validity period which has been extended to 20 days
- Can a Foreign Nationals/NRI be a Manager or Director in A Private Limited Company?
Yes, an NRI or foreign national can be a director in a private limited company after getting Director Identification Number. But, at least 1 Director on the Board of Directors must be a Resident of India.
The Advantages of Starting a Business in India
A company registration comes with a slew of benefits. A licenced company adds authenticity and integrity to the company.
It safeguards against personal obligations as well as other risks and losses.
It fosters goodwill and encourages more consumer attraction.
Provides easy access to bank credit and good investment opportunities for dependable investors.
Covers the responsibility for safeguarding the company’s properties.
Greater prosperity and a stronger dedication to wealth
Enhances the capacity to evolve and expand into a large organism.