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Home Startups

How to Register a Company

Business Talk by Business Talk
March 24, 2021
in Startups
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Company Registration
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Choosing the right company structure for your firm is as important as any other business-related activity. It is because the perfect business structure will allow the company to work appropriately and align with the business goals.  In our country, all the companies need to register themselves as part of mandatory legal compliance. Before you learn how to register a company, you need to understand the different types of company structures.

The Different Types of Company Structures:

  • One Person Company (OPC) – if there is only one promoter or owner, then OPC is one of the most effective forms. It allows the sole-proprietor to carry on his work and still be part of the corporate framework.
  • Limited Liability Partnership (LLP)– The best part here is the separate legal entity that allows the limited liability of the partners.
  • Private Limited Company (PLC) -is a separate legal entity from its founders as shareholders (stakeholders) and directors. All the individuals are regarded as employees of the company.
  • Public Limited Company (PLC) -is a voluntary company of members which is incorporated under company law, and it also has a separate legal existence. The liability of the partners or members is limited to the shares they hold.

How to Register a Company

  • Get a digital signature certificate- Under the IT Act, there are provisions to use the digital signatures on the documents that are submitted electronically to ensure both security and authenticity of the documents that are filed electronically.
  • Acquire the director identification number-Under the companies amendment act, 2006, the concept was introduced.
  • Create an account with the MCA portal.
  • Apply for the company that needs to be registered.

Documents required for the registration of the company:

The registration of a company cannot be done without proper proof of identity and proof of address as proof of identification and address would be required to incorporate all the company’s directors and shareholders. As proof of identity, you can submit a Pan Card/Aadhar card/Driving license/passport besides the latest Telephone Bill /Electricity Bill/ Bank Account Statement. For online business registration in India, the company must have a registered office in India. To confirm admission to the registered office, a recent copy of an electricity bill or the property tax receipt or water has to be sent. Besides that tenancy or rental agreement, the maintenance bill or the sale deed or a letter and NOC from the owner with his/her permission to use the office as the company’s registered office are accepted.

You also need to submit the DIN and DSC of all the directors. The documents mentioned are the public documents that have to be submitted to register LLP, One Person Company, Private Limited and other Public Limited Company.

Some of the Benefit of Registering a Company

  • Builds goodwill and supports some  customer attraction
  • Gives genuine investors bank credits and good investment with ease.
  • Provides the  responsibility’s cover  to protect the  assets of the company
  • Improves the ability to develop and grow large

Above all, a licensed company makes it genuine and enhances the business’ credibility.

Importance of Registering Your Company

  • Gives you a unique identity- When you have an identity of your product, there indeed comes some pride with it. And it is no more just a dream but a real idea that legally exists, with its own name and address. It is possible because, under no law, no two businesses should have the same name to avoid confusing the public. Hence no other person can use or register the same name ever unless your company goes bankrupt and is formally dissolved. Additionally, you are legally free to go ahead and design a logo, create business cards and letterheads once you are registered with the name you chose for it.
  • Protects you from personal liability- The only reason why many people have to register their business is that without legal protection of limited liability, you could lose your business and personal property if something goes wrong.
  • You can quickly get bank credit, and investment from investors- personal and business loans are some of the most common categories of loans. You cannot use them as alternatives. Above all, your business must be registered to qualify for a business loan. Hence if you are asking for investment but you don’t already have your business registered, no investor will ever take you seriously. It’s a sign of un-seriousness and a lack of professionalism to the investors, and none of us wants it for sure.
  • It’s essential for continuity sake- The companies that are quite big today have started small only as unlike human beings, the companies can last forever as they are automatically controlled. They go on from one generation to another. Above all, the registered business is ideally an asset because it  will help you achieve your dreams of continuity. 

Conclusion

Registering a company can benefit you in many ways; builds goodwill, protection, ability to develop and grow. Apart from that getting a license is important as well for many things which are necessary for every business. Always having a proper document while going for a license is a must and will get you a license on time.  

Read More:

  • Top 10 Highest Paying Jobs in India
  • Top 10 Companies in India
  • How to Get a Business Credit Card.
  • Top 10 Successful Startup Companies in India
  • How to Get a Business License
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Business Talk

Business Talk is a digital business magazine that caters to CEOs, Entrepreneurs, VC, and Corporates. While working with entrepreneurs and business executives, we focus not only on their achievements. Our mission is to shed light on business entities, including their innovations, technological benchmarks, USPs, and milestones/accolades.

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