10 Things to Know Before Registering a Company
1. Choose the Right Business Structure
Decide whether you’ll register as a Private Limited Company, LLP, Partnership, or Sole Proprietorship. Each structure has different legal implications, tax obligations, and compliance requirements.
2. Understand the Registration Process
Company registration in India typically involves:
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- Name reservation via RUN or Spice+
- Getting a Digital Signature Certificate (DSC)
- Filing incorporation documents with MCA
Knowing the steps in advance ensures smoother processing.
3. Name Availability and Branding
Your company name must be unique and compliant with MCA naming guidelines. Also, ensure domain name availability for branding and website purposes.
4. PAN and TAN Applications
Alongside incorporation, apply for Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) for taxation and compliance purposes.
5. Registered Office Address
You must provide a valid Indian address as your registered office, which will be used for all official communications.
6. Director and Shareholder Requirements
Most company types require at least two directors and two shareholders. They must provide identity, address proof, and a recent passport-size photo.
7. Capital Requirements
There’s no minimum capital requirement for most companies, but you must declare an authorized and paid-up capital.
8. Mandatory Compliance
After registration, companies must comply with:
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- Annual filings
- Income tax returns
- GST filings (if applicable)
- Statutory audits
Failing to do so can lead to heavy penalties.
9. Opening a Business Bank Account
You’ll need the Certificate of Incorporation, PAN, and board resolution to open a current account in your company’s name.
10. Consult a Professional
Though you can register a company online, it’s wise to consult a CA, CS, or legal expert to ensure you’re choosing the right structure, filing correctly, and remaining compliant.
Final Thoughts
Proper planning during company registration lays the foundation for smooth business operations. By understanding these key aspects, you can avoid legal and financial pitfalls and focus on growing your venture.
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