What is Business or Company Registration?
Giving your business an attractive and unique name is very important to cover most customers in the business. But apart from naming, registering the business name with the Government of India is the essential step next. By registering your business name, you can protect it from other users. Usually, the registration of the business or the company is done within the locality and the state where the business is being established.
Business or Company registration is an important process for establishing a business by which one can have a secure, reputed, and profitable business. This is a mandatory thing to do as it is required by law. By registering the firm, the general public will be aware of who owns the company, and other business executives will be discouraged from forming a corporation with the same structure. This Business registration is called as Incorporation of a Company or the Formation of a business in India.
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When Should we Register our Business Name?
Registering the Business or Company means we need to submit the business details, including the brand name, to the State Government to save it within the registry of business names. It becomes essential to register the business name in two different situations:
- In case you have decided to form a sole proprietorship, in that case, it is essential to submit the business registration with the State Government. This is the only way where we can register the sole proprietorship.
- Even if you are not fixed with what type of business form you take, still, you can register the business with the State. The registration process will save your business name for you so that others don’t take the chance of using the same name.
Types of Business Registration
If you want to register your EOU, the concerned registration form must be sent or forwarded to the respective Development Commissioner and the Ministry of Commerce and Industry of the Indian Government.
The District Industries Center (DIC), or the State Directorate of Industries, is concerned with Small Business registration.
The ROC of any State is responsible for registering any private or public limited company, section-8 company, or n STPI.
Uses of Business Registration
Registering the business or the company is very important, and it holds many different uses listed below:
- One of the most important benefits is that as you register your business or company name, the chances for legal problems are very minimal.
- By registering the business, you can retain your reputation within the market as no other take the chance of using the same trademark or identity.
- It will help in great reliability within the customers, suppliers, and employees.
- Spread your brand anywhere in India.
- It will bring you the opportunity to deal with large companies.
Process of Registering Business or Company
More than 7 lakh business groups are being registered with the Indian government, according to official figures. The steps and the procedure concerned with the registration of a business organization is explained briefly below:
- Applying for DIN:DIN means Director Identification Number. As per the Companies Amendment Act 2006, any business institution must obtain a unique DIN, an 8 digit number. On the MCA website, one needs to log in targeted Dthe the IN-1 form. Fill in the form and submit it along with the required fee of Rs.100.
- Applying for DSC:Next, you need to get a Digital Signature Certificate (DSC). This is to ensure the security of digital documents. Only with the help of agencies like TNL, IDRBT, nCODE Solutions, TCS, SAFESCRYPT, etc., can you obtain the DSC. This DCS is valued only for less than two years and has to be renewed after that. For this, you need to pay about Rs.800-5999, depending on the structure of the organization and the validity period.
- New User Registration:To fill all the e-form and make payments, you need to open a user account. For registering with the MCA portal, you won’t be charged.
- Filing Charter Documents:Then, you must create some Charter documents like MOA and AOA. MOA (Memorandum of Association) will include all details of the company, objectives, and power. This MOA is never amended. AOA (Articles of Association) includes rules and regulations of the company, details of the management, conduct, and bye-laws governing the company’s internal affairs. It is an auxiliary of MOA, which can be amended.
- Application for Company Name:You should give your company a unique and attractive name to easily isolate it from many competitors. The Ministry of Corporate Affairs (MCA) has given a RUN (Reserve Unique Name) web service for registering the company. The name you choose should meet the guidelines prescribed.
- Registering Other Details:Next, you must specify the company name & address and notice for the appointment of directors, secretaries, and managers. With Form-1, you need to mention at least 4 names of your company. The names should abide by the provisions mentioned under the Companies Act, 1950. Next, you need to fill Form -18 and Form-32 with the company’s address and appointment of directors, secretary, and manager, respectively.
- Acquiring PAN and TAN:Last is acquiring PAN cards for the company from authorized agents appointed by the Union Trust of India (UTI) Investors Services Ltd or the National Securities Depository Ltd. (NSDL). Also, you need to get a TAN from any Assessing Officer present at the Income Tax Department of your state.
Thus registering a business or company with the respective State involves less complex steps and is very affordable. Business/Company registration in Pune, Gurgaon, and Delhi are almost the same except the place or locality of the registration. You can give your organization a unique identity to reach customers more easily as you register with the business name. Also, registering the business will prevent the trademark and the popularity theft and misuse by other existing or emerging companies that come into the market. So make sure you register your business with the respective State and give your organization a better kick-start.
Frequently Asked Questions
You can run your small or large business without registering, and it is entirely legal. Asolo sole proprietor or runs the company without registering but can’t legally use the organization’s name. For using the business name as an officially recognized business entity, you must register it with the local state authority and Internal Revenue Services.
The applicant must give information like details of shareholders, personal information like name, occupation, address, email, mobile number, and ID proof.
If you don’t register, your company won’t come under enforce rights under the Act, enforce rights against any third party, no proper relief, and no chance for legal action within the partners