All You Need to Know About Online Company Registration

For those who are planning for a startup, it is important to register the company. It is necessary for one to connect with a chartered accountant who can help them register their company. Why? Registration of business is important as it offers numerous advantages and helps protect your business securing all the rights against third-party. Business registration is an important step for a business of all kinds and types during incorporation. No matter how complex it seems, registration of business in India is actually not too difficult as there are all variants of business available that you can have registered under Company Law or partnership laws. Before we go any further, let’s discuss the importance of online company registration

Importance of Business or Company registration

It is vital to choose business structure properly as the Income Tax Return will be based on it. When you are having your company registered, remember that each structure has various levels of compliance that need to be met. For instance, a single owner has to submit the file for an income tax return. However, an enterprise has to file an annual return along with the income tax return and the company’s registrar. Business registration offers protection under the law, this means, if your enterprise is registered under company laws, then your business as well as you will be protected. Why? the company and LLP are absolutely different legal entity so there will be fewer or certain liabilities upon you and once the registration is done, your company can sue.

Online Company Registration

Types of Company Registration

The enterprise or organization structure that one chooses regulates the taxes that one has to pay; the compliance measures all one need to follow and the eligibility criteria that need to be met. Therefore, one of the most important decisions an entrepreneur or a startup owner needs to make regarding what kind of business registration to do in our nation. You can make company registration online for a smooth process.

The India Legal System lets numerous types of the enterprise exist under a different type of company registration, below we are listing the types of business registration that one must know…

– Private Limited Company: This is the most common yet popular type of business entity in India, in a Private Limited Company- business assets are different from personal ones. Hence, each shareholder is responsible for their share only of the total capital. You can search chartered accountant near me to connect with the best professionals in town who can be of huge help in understanding the right type of business registration. You need to know that the total capital of the entity is actually the total shares and that can be sold or given to another person that becomes one of the company’s owners after such transfer or even selling of shares. The compliance of that involves board meetings, maintenance of records of financial transactions, and more. now, these are of three types:

  1. Company Limited by Shares: The liability of members is actually limited by the memorandum to the amount.
  2. A company limited by Guarantee: The liability of the member is absolutely limited by the memorandum to a certain amount as the member undertakes to contribute for the important assets of the company.
  3. Unlimited Company: Well, in this one, there are no certain limits on the liability of the members.
  4. Partnership: partnership business entities are similar to a sole proprietorship. There is a certain difference between a sole proprietorship and a partnership, it is more than one individual is included in the partnership. You need to know that a legal partnership agreement is involved that defines the roles, responsibilities, and share of each partner.
  5. Limited Liability Partnership: This particular kind was introduced in the year 2009 as a carefully structured model that can be defined as a separate legal entity. Business assets are separate from the persona; assets. In case of business faces losses, the maximum liability of every partner is defined by share capital.

Well, if you have any more questions or doubts regarding business registration, feel free to connect with Legal Pillers. Being the leading Income tax consultantswe can be of huge help in having your business registration done only smoothly.

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