Benefits To Register A Company

Whenever you start your own work in the form of any business it is very important to register it. The registration of any business is very initial and important step, without registration, your business cannot start and gets any identity and other market benefits. Registration gives you a proper structure to run your business idea. In India, every kind of business can be registered. Basically, registration means creating a separate identity for your business by taking certification from applicable regulatory authority as per the type of company. Different type of business require different registration, for example, if a person start his business in the form of private limited company or public limited company then MCA approval is required, if you are taking GST registration then CBECcertification is required, if anyone wants to register his society or trust they need to register it with the state government, there are many other types of registration for business startups. The Company registration means registering the business with Ministry of Corporate Affairs. By taking MCA approval the owner can operate his/her business all over India without following the double registration process. A Company gets it registration in the form of Certificate which is known as Certificate of Incorporation which contain 21 digit alpha-numeric identification code in which first letter starts with alphabet which symbolizes the listed or unlisted status of the Company next five digit defines the sector to which company operates its activity now next one is two alphabetic letter which denotes the state code like for Delhi it is “DL”, for West Bengal it is “WB” etc. every state having its own state code next there is again four digit numeric code which represents the year of registration and the next three alphabets is the type of company i.e. if company is private limited company then it will be “PTC” or if public limited then “PLC” for one person company it is “OPC” for section 8 company “NPL” is the code and the last six digit are the registration number which is issue by the ROC.

There are many benefits and advantages to registering a Company and these are:

• It gives a separate and legal identification to the company
• The liability of the owner get limited as the company is responsible for its all liabilities and dues
• The Company also enjoys the financial services like banking facility, borrowing and lending of funds, etc.
• It gives the Company a market reputation and brand value as well as increase the goodwill and worth of the Company which helps the owner to calculate the value of his business
• It is very easy to transfer any property which is already registered as there is no legal issue arises while transferring any registered property so if the owner wants to transfer his business to any other person it can be easily transferred.
• The banks and financial institutes trust only those persons who are having any legal identity whether that person is an individual or any body corporate. So if any company is having valid registration certificate the banks and financial institutes can grant them funding facility by giving loans or borrowings etc.
• A registered brand is always attracting the customers and builds a healthy relationship with the consumers. A registered brand always creates trust regarding quality and quantity of the product or services in the mind of the consumers.

If anyone fails to register the company for starting his/her business then all the above benefits will automatically become the disadvantages for the owner of the company. An unregistered company cannot avail the benefits which are issued by the Government from time to time to promote the startup's projects. Government benefits like taxation relief, rebate in tax, subsidiaries, etc. People also avoid such brands which do not have any legal identity and are not registered anywhere. The owner is always personally liable for any damages and debts. So to avoid all disadvantages it is better to register the company before starting any business. You should always take the consultancy and registration guidance as well as assistance while registering your own business so there should be no legal issue. The main hurdle before starting the business is its registration and to overcome such issue is to take registration with the help of qualified professionals.

Know More about Company Registration on our Blog.

Company registration Steps Process Fees in India

Company means the togetherness of same minded people from where something productive will be
released. The company is issued with public interest under one person or the group of persons. The
product and the productivity is the main reason we are talking about the company. Now a day the
virtual company is on the rise. The space problem has been solved with virtual companies. The
employees can work from anywhere. With a strong internet connection and proper planning, the
business will be able to deliver what it promises. The company means a trusted address where the
receiver will be able to contact the person from the company and the service provider will offer same
quality with experience of the same to the targeted clients. The company is the place where the
gathering of people becomes like a family.To accommodate overflowing of population Company has
started forming.

The company has many divisions like:

The company is divided into many divisions. In India, the divisions found mainly is a Private limited
company, Section-8 Company, One person company and many more.

1) The private limited company is the company where two or more directors involve with
minimal liability.The equal share of responsibility makes the company visible to everyone,
with proper verification.
2) One person company is ok with one director. The person remains solely responsible to
everyone and if for three consecutive years it makes business more than expectation, it will
become a private company by rules of Government.
3) The shareholder or limited company is important to shared responsibility.The share is the
service product on which one can easily embark the success.

Limited company means the limitation of liabilities are limited to the person or the shareholder.

All these are the parts of Company in India where the various kinds of companies are doing their
business. In India, the private limited companies have more presence than any other. The Ministry of
affairs in India has circulated the rule of Private limited India under 2013 companies act and in 2014
the company corporate incorporation rules come. The director and the shareholder can be the same. A
foreigner can be a director or a shareholder of the company. He can invest in the company directly.
This FDI facility in the company is regulated by proper rules where the foreign investment will be put
in.

Online company registrations have some important rules to follow. They are like:

1) Obtaining DSC and DIN-DSC or digital signature certificate is very important to maintain.A
digital signature is good as this will be at the storage for many years to come without any
decay.The digital medium is always useful to maintain the data. The person of the signing
authority has to be present in front of the registrar, not always. The digital signature can be
done at the place where the company proprietor is living right now. The shareholder
companies may need to sign all documents by every shareholder. The shareholder might not
be present at the same place at the time of signature. DSC is must to register a company.DIN
or Director identity number is also important to run the business. DIN is enough for one
person if he wants to do many businesses at the same time. One DIN on the name of one
person is good.

2) Name approval-The company registration will be done with name approval.The proposed
name for your company is rightfully placed in the office of the registrar through RUN web-
service. The name may have other similarities.If your proposed name become similar to other
names then, it is important to change your proposed name. The name will be published on the
page of official name registrar page. If no one objects to your name then it is possible you get
your company name. Name availability is possible when the registrar gives permission to the
company liable person.
3) Company registration - This step is possible when the director submits all documents to the
MCA portal of the registrar office. The duration of the company registration can take 5 to 7
days.

The reason we do apply for Company registration

Separate legal entity - The presence of your company is important. The recruitment, the opening of
a bank account, the selling or buying of a share all can be done by the company. The company is able
to take decisions on the behalf of the liable shareholders singlehandedly. Online company
registrations are also given in this facility.

Borrowing capacity - Once the company starts reaping the facility of company registration.It can
borrow money, equity share and the important data from another entity or the banks easily. The
borrowing capacity increases if the company looks responsible. The sender also feels ok to give the
money, equity etc.

Easy transferability- The company feels ok to transfer money. One can easily transfer money or get
money from other sources. It will help the company to run and grow.The easy transfer is possible
because the liability of the company remains strong and singlehanded.

Perpetual Existence is a common and important feature of the company. Once the Certificate of
Incorporation issued by the Registrar the company gets its own identity which is totally different
from its members and directors. Directors and members may be changed but company’s identity
remains the same. Means death, bankruptcy, insolvency of the members and directors does not
affect the status of the company. There is no life limit for the company until the members are
agreeing to dissolve it.

Owning property - Under company registration is good option to run the existing business and we
know that it is always in mind to explore the business size. One can think of expanding the business
and it will help the person to own property as with proper documentation he is able to register the
company name to the targeted point. If the company wants to buy a property under the company
name he is able to do so.

One can register his company in the legal documentation and can register the growth in the market
too.