What To Know Before Getting Your Own Company Registered

Posted by Ankur Sharma on December 23rd, 2019

Starting a new business can be overwhelming, as many companies are rising every day. Sole traders are out there in business for many years, which are one step away from getting registered.

 New company registration in India is now easier, whereas it used to involve a lot of paperwork and paying tons of money.

 Here are some tips for getting your own company registered.

Professionalism

An innate sense of professionalism can be acquired by making your company registered. It can increase the trust of clients or other companies and help your business become more successful.

Also, there are numerous organizations that only trade with other registered companies. So, when it comes to expanding to the client base and tapping into the professional world, the registration process can’t be skipped.

Investors

Angel investors and venture capitalists tend to invest in registered companies.

Thus, it is essential to get some investors, and it can't be done if you don’t own a registered firm. You need to know how to register a private limited company in India to commence the funding process.

Director

Registering a business means a lot of changes from a normal business. You need to have at least two directors and two shareholders to run the company.

One person can be both a director and a shareholder. To become a director in a company, you need to stay in 182 days in the country in the last 2 years.

Having one director on the board of directors is also mandatory. So, it is better to have more directors in your company.

Type of business structures

There are mainly 5 types of companies you can register in India.

• Sole proprietorship
• One-person company
• Limited liability company
• Private limited company
• Partnership company

New company registration in India is now very easy. But, you need to think carefully before registering and decide which one to register your company among these five.

Name of the company

The name of the company is significant, as in the future everyone will recognize you by this name. So, you need to choose it very carefully as per the guidelines. It is challenging and takes time to name your business, but it's worth it.

You need to narrow down to an easy name to remember and short. It should be at least matching to the company and its products. Moreover, it can't be similar to other companies or identical, so you need to come up with a completely different one.

Register a company

It is imperative to know how to register a company in India. There are some critical steps to follow to make your company registered, such as:

• Obtaining DSC (Digital Signature Certificate)
• Obtaining DIN (Director Identification Number)
• Choosing a name for your business
• Filling a new user registration form
• Incorporating the company

Obtaining a PAN card and a Tan card is also mandatory for a registered company from the Income Tax Department of India.

Conclusion:

These are some tips that you will need to get your company registered. You should know which type of company you want and choose the name very carefully as it represents the whole company.