It's usually a big thing to launch your own company, but many people do it without first incorporating it. Is this a wise decision? What dangers do we run when we start a business without first setting up a separate entity?
Private limited corporations are the most popular type of business entity in India with over 20 lacs of them. According to the 2013 Companies Act's regulations, the Ministry of Corporate Affairs oversees all such businesses.
The procedures for incorporating a firm in India have been considerably streamlined by the Indian government. Entrepreneurs have found it simple to register their ideal firm in India by doing this.
Such actions have been made to guarantee that business owners receive the necessary motivation to launch the enterprise of their dreams. However, how can people incorporate a firm in India?
In this essay, we'll go into great detail about how to register a company in India and how StartEazy may assist people in doing so.
Advantages of Registration of Companies
The wisest course of action is always to register your firm because doing so offers tax advantages, legitimacy, the potential to develop or extend your organisation fast, and a noticeably accelerated procedure for approving business loans.
You can employ full-time workers and pay them in accordance with state regulations. Also, in terms of the security it offers,
Due to the fact that your identity is distinct from the identity of the business and the veil of corporate identity that comes with it, private company registration online or a limited liability partnership entitles you to a certain level of protection against bad debts and other legal actions.
How to Register a Company in India?
Legal service companies like StartEazy have made it simpler than ever to register a business online. The government has also taken the required actions to make the process of registering a business easy and uncomplicated.
In India, businesses get their legal identity and independence through the process of incorporation.
In most circumstances, a corporation needs a minimum of two shareholders and directors in order to create a company in India.
The directors will need to get their Director Identity Numbers and Digital Signature Certificates in order to start the procedure. The entrepreneurs will then require a company PAN card, address verification paperwork, and further financial statements.
Once the entrepreneurs have the necessary paperwork, they can submit an application to register their business after choosing an appropriate name for their endeavour.
The application and supporting documentation are then examined by the Ministry of Corporate Affairs to confirm the corporation.
The entrepreneurs will receive a certificate of registration in approximately a week or two if the officials are pleased.
What You Should Know About Business Incorporation in India?
- When it comes to incorporating a business in India, entrepreneurs have a variety of choices to select from. Partnership firms, private or public limited companies, limited liability partnerships, sole proprietorships, and one-person businesses are some of the most prevalent possibilities.
- If all the paperwork is in order, the registration process for a business typically takes ten to fifteen days. The length of time it takes to complete an application also typically relies on how many papers the applicant has available and how many applications the government personnel need to process.
- The incorporation certificate is available as a PDF on the Ministry of Corporate Affairs' official website. Businesses are permitted to print off a soft copy of the certificate and use it as a hard copy.
- Before submitting an application, business owners should perform a name search online to make sure the suggested name is distinct and distinctive. Each applicant may submit a maximum of two names on the registration form. Applicants may submit the application again with two new names if the MCA rejects these.
- In order to open a current bank account and conduct business activities, entrepreneurs must register their firms in India. To confirm the company's legal existence, the majority of banks require the incorporation certificate and the memorandum of association.
Documents Needed to Register a Company Online in India
In order to incorporate a business in India, entrepreneurs must submit the following documents to the MCA:
- PAN Cards of Director/s
- Passport-size photo of Directors
- Address and Identification for Each Director (Passport, Aadhaar Card, Driver's Licence, Ration Card, Voter ID)
- Evidence of ownership of the registered office or company location (Property Registration Certificate, Lease or Rental Agreement, Landlord's Approval (NOC)
- Any Utility Bill of the Office Premises
- All directors' digital signature certificates
Benefits of Incorporating a Business
- Entrepreneurs can easily share and transfer ownership because the business operates as a separate legal entity.
- makes it simpler for business owners to acquire funding and raise money
- With the restricted liability protection offered by a private limited company letterhead, business owners can reduce risk.
- The corporation enjoys continuous or eternal succession because of its independent existence. Also, enabling it to carry on independently of its founders and directors
- Also, upon successful incorporation, businesses can apply for and They can register with the government for tax purposes by using PAN: https://web.umang.gov.in/landing/department/my-pan.html and TAN.
- According to the Companies Act, incorporation aids in creating an artificial judicial person for a firm, giving it a broader range of legal rights.
- Companies are allowed to possess, acquire, sell, and transfer both tangible and intangible assets under Indian law.
How StartEazy can help?
Every year, StartEazy assists hundreds of Indian business owners in creating the enterprise of their dreams and applying for company registration online. We make it easy for young business owners to register online so they can easily finish all the requirements and get a registration certificate.
Simply get in touch with us, and we'll set up a meeting for you with one of our legal professionals. Also, once they are aware of your unique requirements, we will develop a plan for the certifications you will require to launch your firm.
You can register your business in fewer than ten days if you have us on your side.