Benefits of company registration
Company registration offers several benefits which includes :-
Limited liability :- It protects shareholder’s personal assets .
Tax benefits :- The company are taxed at a lower rate compared to individuals .
Credibility :- The registered companies are known as more credible and trustworthy .
Access to funding :- The registered companies can raise funds from investors and financial institutions .
Why register a company?
Registering a company means giving business a legal identity which comes under Indian law . Business is a legal organisation that have their own assets, contracts, liabilities, funding , taxes etc ...
It also builds trusts with the clients, vendors and also the investors.
It's also protects the business owner with limited liability.
It's makes tax filing easy and presentable.
It gives access to business banking, loans and many startup benefits.
Mistakes to avoid during company registration
1. Choosing a wrong structure for your company is the biggest mistake of a organisation as it brings problems with the investment and funding.
2. Incomplete documents can lead to the cancellation of the registration of the company and can delay it or can get rejected
3. Trademark conflicts are also one of the mistakes to avoid as it is very important to check the existing trademarks before choosing a company name.
4. Ignoring post - registration compliance - After the registration of the company one is advised to appoint an auditor within 30 days.
It is important to file ADT -1
Maintaining minutes and registers are equally important.
Filing for annual returns and ITR are also very important.
What is post - incorporation compliance checklist?
Once the company is registered ther further procedure includes :-
1. opening a business account immediately.
2. Appointment of an auditor with ADT -1
3. Filing INC - 20A within 180 days
4. Issuing share certificates within 60 days
5. Maintaining books of accounts.
6 . Checking on file annual forms (AOC -4 , MGT -7 ) annually
Missing any one of the above criterias can lead to the penalties and loss of the active status of the company.
After the completion of the registration of the company
1. Creating company website and social media presence is very important as it helps to established and online business and promote it equally.
2. Obtaining and clearing necessary licence and permit is equally important for a registered company.
3. Setting up and insurance and thinking about the future of the company, it's liability, property, and employees is equally important for the registered company before hand.
4. Keeping records of board meeting shareholder meeting and financial transactions online and offline is also very much needed for a company .
5. Holding annual general meeting and discussing about the companies performance is also equally important.
6. Paying taxes and filing for taxes on time is also very important to avoid legal issues and penalties as it is bad reputation for the future of the company.
CONCLUSION
The registration of a company is a very important and crucial step for enterpreneurs looking to establish a legal organization in India . By following the proper registration process online and submitting the required documents , businesses that can obtain a certificate of incorporation and start operating . Understanding the fees , benefits , and other important requirements is also very essential for maintaining a company’s good name and standing .
FAQ
1. What is the minimum numbers of directors required for a company registration?
Two directors are required for a private limited company and for a public limited company three directors and required.
2. Can a foreigner be a director in an Indian company?
Yes , a foreigner can be a director in an Indian company but they are required to obtain a DIN and comply with the regulatory requirements.
3. How long does the company registration process take?
The company registration process typically takes 3-7 working days , but it can vary depending on the complexity of the application.
4. Can one register company on their own?
Yes, the portal called MCA allows one to register the company on their own . But if someone is unfamiliar with the legal terms then they should take help of the professional individual.
5. Can one use the home address as a registered office ?
Yes , home address can be used as a registered office if they have a proper utility bill and an NOC from the property owner .
6. What is the minimum capital requirement?
There's no minimum capital requirement anymore but one can start with ₹1 as authorised capital.
7. Is GST registration necessary after company registration?
If the turnover of the company exceeds ₹20-40 lakhs or if one is providing with the interstate services then GST registration is necessary.