Importance of Company Registration in India

Registrating your company is always a wise decision, since it allows you to see what your company will look like in the future. Are you wondering how? Just as a father’s name gives his son or daughter a sense of value, a company registration gives the company a legal entity in the market, company registration gives the company a sense of identity. In this article, we will discuss why company registration is important in India.

Therefore, company registration in India has the following advantages:

• Having a limited liability

Limited liability conferred upon the company’s director and shareholders is the biggest advantage of company registration.

• An organization’s status or recognition

Once a company is registered, it becomes a legal entity with its own legal status. As far as the law is concerned, it exists independently of its director or shareholder.

• Succession in perpetuity

There is a perpetual succession for a company, which means that people and directors come and go but the company remains forever. There would be no effect on the company’s existence if any person died, became disabled, or retired.

• Easy transferability

If a business is sold as a going concern, the advantage is the ease of transferring the whole shareholding to the buyer, so management and ownership can be easily changed.

• An institution or bank lends you money

Being a registered company creates a level of trust with a bank or financial institution, which makes borrowing a loan easier.

• Raising Money from Public

By distributing shares and accepting public deposits, the Registered Company is able to raise a significant amount of capital from the general public.

In India, how do you register a company?

Getting your company registered in India involves the following steps:

1. It is necessary to obtain a DSC and DIN before you can file government forms online. Moreover, Director Identification Numbers (DINs) need to be obtained. You If you would like to obtain this number directly, you can do so through SPICE. company name will be approved once the DSC and DIN have been obtained. Applicants will submit an online application for name approval using the RUN form on the MCA portal.
2. Documents Required – Documents required for the registration of a company

• • PAN Card
  • Id proof (Aadhar Card, Passport, Voter ID )
  • Address Proof (Bank Statement, Electricity Bill, Mobile Bill)
  • Photograph

1. Getting MCA registration involves filing an incorporation form. In addition to the SPICE form, there are several documents created and submitted. These include the Memorandum of Association, the Articles of Association, the Tax Deduction and Collection Number, and the Permanent Account Number.

Company Registered- After examining all documents, the ROC issues a Certificate of Registration to confirm the authenticity of the company.