When commencing a business, businessmen have multiple choices as to the kind of business entity that they can form. The Indian Company Law gives options including Private Limited Company, Public...
The idea of company registration is always a right choice as it gives you an idea of the future of your company. Wondering how! Registering your company means you are giving value, name and an image in the market to your company just like a father‘s name plays a role for his son or daughter in the same way company registration gives a legal entity to the company in the market In this article, we will tell you about the importance of company registration in India.
So, the advantages of Company registration in India are as follows-
- Limited liability
The first and foremost advantage of the company registration is the limited liability that is conferred upon the company’s director and shareholders.
- Status or the Recognition to the company
After the registration, the company has its own legal entity or status or recognition in the market. It has its separate existence in the eyes of law from its director or shareholder.
- Perpetual Succession
It is a say people come and go or what we will call the director may come and go but the company has its own entity and perpetual succession which means the company remains forever. The death, disability or retirement of any person would not affect the existence of the company.
- Easy transferability
When comes a time to sell the business as a going concern the advantages is the level of easiness in transferring the shares of entire shareholding to the purchaser and thus facilitates easy change in the management and the ownership.
- Borrowing loan from bank or Institution
It is easy to borrow a loan from a bank or financial institute when you are a registered company as that creates a level of trust.
- Raising Money from Public
The Registered Company can raise a large amount of capital from the general public by issue of shares and public deposits.
How to Register a Company in India?
Following are the steps you need to follow for company registration in India-
- Apply for DSC and DIN – Digital Signature Certificate is an electronic signature which will be used for filing government forms online. After that, you also need to apply for Director Identification number (DIN) which can be filed directly through SPICE.
- Company Name Approval – after obtaining DSC and DIN. An application for name approval in RUN form will be submitted at MCA portal Online.
- Documents Required – the list of documents are required for company registration
- PAN Card
- Id proof (Aadhar Card, Passport, Voter ID )
- Address Proof (Bank Statement, Electricity Bill, Mobile Bill)
- File for Incorporation – the most important step is to file the incorporation form to get the MCA registration. All the documents like Memorandum of Association, Article of Association, Permanent Account Number or Tax Deduction and Collection Number are created and submitted with the SPICE form.
Company Registered- when all documents are found to be genuine then ROC will issue the Certificate of Registration to the company.