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company registration

Surprising facts about Company Registration

Company Registration is an act of legally getting right to do business. Company registration in Trichy raises credibility and reliability in target market. Registered company products get high concern among other than unregistered company products. Different companies comprised of different rules as for private, public limited, LLP registration, OPC registration and Partnership Registration.  Indian Companies Act in 1956 enabled companies to be formed by registration. Various companies provide services of company registration in Salem.

Companies Act 2013 introduces culture of corporate social responsibility.

Companies act 1956       

  • 13 Parts          
  • 658 Sections        
  • 15 schedules  

Companies act 2013

  • 29 Chapters
  • 470 Sections
  • 7 schedules

Some new Concepts in Company Act 2013

  • One person Company
  • Small/ dormant company
  • Clause Action suit
  • Key managerial Person/Secretarial audit
  • Woman /Resident Director
  • Rotation of Audit/Internal Auditor
  • NCLT/Special Court/NFRA
  • Independent Director
  • Corporate Social Responsibility

Procedure for Company Registration

   The following procedures are acquired for company registration in Erode.

Step1: Obtaining Director Identification Number (DIN) and Digital Signature.

Director Identification Number allotted by the central government to any person intending to be the director or existing Director of the company. It’s eight digit unique number. Digital Signature is to verify mathematically the authenticity of documents. It is to secure data.

Step2: Applying for the name

The promoters should propose one or more suitable names for the name of the company registration. So that, the name should not be similar or identical to the existing registered companies. The name should not be the prohibited under ‘Emblems and Names Act 1950’. The name should have suffixes like Private Limited, Public limited, LLP, OPC in order to find the entity.

Step3: Filing for Incorporation of Private Limited Company

After name proposal promoters should submit the application. Prescribed fees should be given. And the documents must be given. The purpose is to protect you from business liabilities. If you are working under unincorporated business creditors may reach your personal assets.

Step4: Subscribing to the private limited company

According to Companies Act 2013 the subscriber must sign their name. Should have at least one share.

Step5: Certificate of Incorporation

Upon filing the above said documents and payment of fees Certificate of Company Incorporation” would be issued. A certificate of incorporation is a legal document relating to formation of company or corporation.

Documents Required

Subscribers are shareholders of the company. So the documents required Company Registration in Salem are

  • Original copy of formal letter issued by ROC (Registrar of Companies) regarding availability of company name.
  • DIN for proposed Directors in the company.
  • Digital Signatures for one of the Directors of company.
  • Form 1 for incorporation of the company
  • The Form 18 address of the proposed company
  • Form 32 Particulars of directors, managers and secretary.

The following documents also must be given for filing for private limited company registration.

  • Articles of association- It forms a document that specifies the regulation for company’s operations an defines company’s purpose
  • Memorandum of Association- It is a legal document which is prepared to define relationship with its shareholders.
  • Declaration from Directors
  • Affidavit of the Directors

For subscribing private limited company the subscriber should clearly state the following:

  • Address
  • Personal Description
  • Occupation
  • Number of shares subscribed
  • Nature of shares.

These must be subscribed with one witness.

Advantages Company registration:

  • Registering a company is a way of protecting your own assets.
  • Debts which attach to your company not to the person.
  • Paying tax under company is less than that of individual.
  • Registering a concern increases reputation and credibility.
  • Registration   is important in getting brand name. Brand name is an important aspect.

Disadvantages of Company Registration:

  • Financial affairs are public.
  • It is expensive to establish.
  • If the director doesn’t meet the legalities then greater responsibilities   lie on the concern to win its credibility back.

Can the Company registration in Trichy be made free of cost?

Company Registration and its surprising facts in a brief way
  • In RUN web form a company name can be reserved very fast and easy way.
  • Full form of RUN is Reserve Unique Name.
  • Zero fees for Incorporation of Company
  • Director Identification Number for Incorporation
  • DIN Application using form DIR-3
  • *Drawback on using SPICe form
To check Company Registration of Salem Status

Step1: Go to MCA website

Step2: Go to MCA services tab. In dropdown click on View company/LLP Master data.

Step3: Enter companies CIN

Step4: Enter captcha code

Step5: Click on Submit

To confirm that a company is registered

Step1:  Visit CAC website.

Step2: Type the company name in field provided without”Plc” ,”Limited” or “Ltd”

Step3: Check “I am not a robot” Captcha box.

Step4: Click submit.

Timeline for registering company

Even if SPICe form is used and incorporation documents are drafted by a professional within 1 day it would take 4 to 5 working days for company registration in Salem. That is 1 day for document preparation, 1 day for signing documents, 1 day for DSC processing and 1 day for Incorporation processing.

Eligibilities for Startup Company
Company Registration and its surprising facts in a brief way

The company must be registered in India for less than 7 years from the date of incorporation. Annual turnover not exceeding Rs.25 Crores in any of preceding financial years.

The best registration for any business when you are starting out is Limited Liability Partnership. (LLP registration)

Separate Legal Entity-Continue its existence irrespective of changes in partners.

LLP can hold properties.

LLP can also enter into contracts.

Some of the government loan available are

  • Mudra loan scheme
  • MSME business loan in 59 minutes
  • Credit Guarantee Scheme (CGS)
  • Stand Up India scheme
  • National Bank for Agricultural and Rural Development.
  • Credit link Capital Subsidy scheme
  • National small Industries Corporation subsidy.

Bootstrap startup means growing your business with little or no venture capital. That means the person has to rely on own savings and revenue to operate and expand.

Partnership Registration

It requires a group of people. We Smartauditor offer partnership registration at very low cost.

OPC Registration:

One person company is a new type of business entity that allows single entrepreneur to operate a corporate.Ofcourse the Public limited company can be converted to OPC. For OPC registration we Smartauditor offers transparent pricing.

Conclusion

Company registration in Salem will give you protection under laws. Capital can be raised. If you want to borrow money from institutional lenders; lenders will see the registration of company. Companies will have long life; that is employees may change; directors may change but the goodwill of the concern remains. So it must be registered legally.

    We also offer trademark registration, Patent Registration, Design registration and Copyright registration.