How to Register a Business Name in India
One of the most fundamental, essential, and significant tasks to be performed for doing a business in any cherished occupational field, anywhere in a country, is proper and perfect registration of a company with governmental authorities. Flawless registration of a company or a business name is absolutely necessary for proper and fully efficient management of the businesses of the company; reputed, smooth, and optimally profitable running of the company; all-rounded governmental protection and concessions; and dignified expansion of the businesses to national and international levels. Therefore, the complete gamut of supporting services are extended by ours worldwide famous and reputed law firm of India, for company formation, registration, business establishment and management, and desired progress and growth. Our firm is a full-service law firm with ample service-experience in all across India and the whole world, in all major and most significant areas of the law closely concerned with companies in diverse economic sectors, essentially including the company and corporate laws, business and commercial laws, labor and employment law, intellectual property laws, foreign direct investment, corporate restructuring, international business and trade, maritime and admiralty law, capital markets, cyber law, and so on.
In ours this highly informative, rich, and immensely beneficial web article, we are presenting a comprehensive range of information about the company registration for all most popular types of companies, procedures for company registrations in India and abroad, and various outstanding advantages of registering a business.
Procedures for Registering a Business Enterprise
The procedures for registering a business enterprise vary depending upon the type of the company being registered, business activities of the company, recommended authority for company registration at State or Federal level in different countries, and the market coverage (national or international) of the proposed company. The generic processes and procedures for company registrations are described briefly in the paragraphs below:
- Selection of Apt Business Structure: Based on the types and nature of the business activities and the objectives and priorities, selection of the form of a company is prudently made. The most prominent and popular categories of companies are the private limited companies, public limited companies, sole proprietorships, limited liability companies, and unlimited companies.
- Giving It a Visionary and Scintillating Name: The Company Name is of great importance, with considerations of unique identity, reputation, vision, quality of products or services, and ingenuity. After selection of the appropriate type of company, checking the availability of the desired names of the company is made (in India, it is made through the Form-1A which is forwarded to the concerned ROC, at least four proposed names are demanded for approval).
- Making of DINs and DSCs: Making the Director's Identification Numbers (DINs) and the Digital Signature Certificates (DSCs) is the next step. In India, these vital company documents are made with regulatory and supervisory support of the Ministry of Corporate Affairs (MCA), the Central Government of India.
- Registration with the concerned State or Federal Government: Reservation of the approved company name is sought through the Form-1 in India, from the ROC of the concerned State of India, where the proposed company is to be established. Other forms and documents required to be forwarded to the ROC are Form-18, Form-32, and the MOA and AOA of the selected type of company. In case of a public limited company, Form-29 is also additionally submitted.
- Obtaining the Certificate for Business Commencement: After proper registration or incorporation of a company, the public limited companies essentially require a due certificate for starting their businesses; the private limited companies do not need such certification.
- Performing All Tax-related Registrations: After company registration, or soon after the starting of the business activities, a company mandatorily requires making of the TAN, PAN, TDS/TCS, VAT, sales tax registration, service tax registration, and other regulatory tax-related registrations, with the State and Central Governments
- Registrations with Customs/Excise Authorities: If the activities of the company are associated with manufacturing, exports, and imports, then, the company is bound to register itself with the Customs/excise authorities.
- Getting Necessary License(s): Getting proper licenses from the concerned governmental bodies and departments is absolutely necessary for manufacturing, distribution, and marketing of its products or services, within the jurisdiction of the State or country.
The Advantages of Registering a Business
Abundant and varied are the advantages of registering a business properly and perfectly with the immediately concerned State or Federal authorities. The following are the main and most significant benefits obtained through registering a company:
- A Unique Identity and Reputation:Proper and flawless registration gives a company a unique identity and business reputation in the relevant State, National and International jurisdictions. No other business or professional entity can ever keep the same company name in the concerned country.
- Governmental Protection and Privileges:A variety of governmental and legal protections and privileges are available through perfect registration of a business in any interested economic field. These privileges and protections are related with recognition and reputation of the company, administration and management of the company, and financial and commercial dealings and transactions.
- Subsidies and Tax-related Concessions:Incorporated companies get benefits of governmental subsidies, and some lavish tax related concessions or exemptions, wherever applicable.
- Legal Liability Protection:The partners or shareholders of a limited corporation are protected from bearing all the financial or other responsibility of the whole corporation. The liability of each shareholder is limited to the amount of investment made in the stocks of such a company by him/her.
- Proper Power for making Employment and Contracts:Through lawful registration, a company is empowered to make employment of its workforce on its own terms and conditions acceptable to the law. Making all sorts of business contracts is also well-facilitated.
- Recognition for Nationwide and International Business:International recognition is based on national accreditation and repute. Extending one's businesses to foreign countries is well-paved by national-level registration of a company.
- Ability to Trade on Stock Exchanges:Inevitable is company registration for trading on the stock exchanges or offering stocks to public investors by a public limited company.
- Perpetuity:Lawful formation and prescribed company registration make a company exist for infinite period of time, through successive ownership. A registered company has its own separate legal personality and entity, which can also be sold to others, if need be.