What is Business Registration
Choosing the right business structure is as important as picking the industry of the respective business because of the long-term implications entailed in the process. Business structure defines the footing of an enterprise and as a founder, you need to choose a business structure that provides you with the right balance of legal rights and protection. Considering the striving competitive environment where one needs to focus all the energy and concentration on the core activities of the business, the entrepreneurs should outsource the activities related to legal and accounting compliances to the professionals who are versed with the process. They will help you do a careful analysis of your expectations from the prospective business and inputs that are required. Every business structure comes with its pros and cons and one needs to consult the specialists for a smooth business registration process.
For every business, different compliances need to be accomplished. Like, a sole proprietor has to file only an income tax return while a company needs to file annual returns with the registrar of companies along with income tax return. An entrepreneur must be clear in his head about the legal compliances he is ready to deal with while the business registration process goes on. And, the process of company registration including private limited company registration can be way too tedious than expected. One should have a deep process knowledge for a company registration which is full of legal procedures. For a complete company registration process, you are going to need the signature of a CA or CS anyways. So, why to lose precious time surfing via websites and collecting the legit documents when the same work can be done efficiently and effectively by us with you focusing on the core business?
Factors to consider for Business Registration
Willingness to bear the entire liabilities
When you do business registration as Private Limited Company registration or Limited Liability partnership registration or One Person Company registration, you are a different entity from your company which provides you legal liability protection. Getting your business registered will assist you by not being held personally liable for certain accidents and other liabilities i.e. you will not be personally responsible for the liabilities of the business which means you can take risks without the fear of losing everything. But in case you set-up. business registration as sole proprietor or partnership firm then you personal wealth can be used to pay of the liabilities of your business.
Compliance Cost
Given business registration as Limited Liability Company registration or Private Limited Company registration or One Person Company registration has limited liability and this protection comes at some cost. Limited Liability partnership (LLP) and One Person Company (OPC) registration has lower compliance cost as compared to Private Limited company registration. compliance cost for sole proprietor or partnership firm is minimal but has unlimited liability. Private Ltd Companies are taxed at a rate of 22% with a surcharge of 10% and cess of 4% making the effective tax rate as 25.17% which is lower than LLP registration which is taxed at 30%.
Brand image
Private Limited Company registration or Limited Liability Company registration or One Person Company registration has better brand image as compared to sole proprietor or partnership firms Generally, large business firms prefer to deal with companies instead of sole proprietor firms. There might be a requirement of tender or job work, which can be applied only by the company.
Easy Fund Raising
All financial institutions prefer to lend money to any company or LLP registration instead of proprietary firms. The features of transparency and perpetual succession of the company/LLP give it benefits over any other business form. The Private Limited Company registration or Limited Liability Company registration or One Person Company registration has better governance, which provides more comfort to all the financial institutions.
✔ One-person company registration
✔ Private limited company registration
✔ Public limited company registration
✔ Cooperative society
✔ Nidhi (finance) company
✔ Section 8 company
Process for Business Registration
Step 1: Touch base with Patron Expert
Name of one person company registration is a crucial step for new company registration. Two proposed names in order of preference, objective/purpose of business activity along with statutory fees are submitted to MCA. The proposed name should be unique and shouldn’t have punctuation marks. In case MCA has any observation then the form comes for resubmission, and in case of more than one resubmission, statutory fees is to be paid again. Once the name is approved, it is valid for 20 days (including weekends or other holidays), and all other formalities must be completed within this period.
Step 2: Understanding your objectives
Digital Signature is an online signature used for filing documents online. Digital Signature Certificate (DSC) is required for all shareholder and director for One Person company registration. It can be applied in parallel with applying for name approval as there is no DSC requirement in the name application. If the director or shareholder of the One Person Company registration already has DSC, this step can be skipped.
Step 3: Brainstoming by experts
After getting DSC and name approval, the next step is to file forms- Spice + Part, Agile Pro, Spice MOA, Spice AOA, and INC 22 forms with MCA. These forms consist of information regarding registered office, authorised, paid-up capital, shareholding pattern, directors, shareholders details such as an address,education qualification, etc. Some of this information is required to be supported required proof like rent/title deed of registered office, PAN card, indentity proof, resident proof etc.
Step 4: Communcating Recommendation to you
After submitting all the documents and getting verified by the Registrar of Companies (ROC), you will receive a Certificate of Incorporation within 7-12 days. This certificate of incorporation will act as a birth certificate for your company registration, and the company registration process ends here. The certificate of incorporation consist of company name, registered address, 21 digits alpha-numeric number Corporate Identity Number (CIN) approved by MCA and notified on the registered companies.
Step 5: Getting Business Incorporation
After getting the Incorporation certificate, a bank account needs to be opened in the name of your company. One needs to submit an incorporation certificate, MOA, AOA and other necessary documents required by the bank. Before the commencement of business, proposed paid-up capital must be deposited with the bank, and INC-20A needs to be filled with MCA to get the certificate of commencement.