Setting up a new business is not as easy as it seems. Entrepreneurs and business aspirants have interesting ideas but are mostly unaware of the legalities involved, like setting up a company. There are certain regulations for setting up new businesses in any geographical location. The rules might be related to registering a new company or obtaining an employer license. Ignoring the company registration rules can have adverse consequences for a business owner. Since business owners know nothing about incorporation rules, they depend on company registration consultants. Read on to understand the role of a company registration advisor in setting up a new business.
Collecting the required documents
A business owner might not know the documents required to set up a new business. With the help of a consultant, the required documents for company registration are collected. Some supportive documents are also needed, along with the incorporation application. On the other hand, some documents might be required to get the desired name for the company.
The business owner has to produce proof of residence and identity for company registration. Do you know that digital signatures of shareholders and company directors are required for company registration? The Digital Signature Certificate (DSC) application is essential for company registration. A business owner might not have the time and knowledge to produce the required documents.
Reserving the company’s name
Business owners and stakeholders pre-decide some names for their businesses. The company name represents the company’s role and many other things. Every new company has to reserve its name with the concerned authorities. The Ministry of Corporate Affairs in India is concerned with company incorporation and name reservation. ROC (Registrar of Companies) is found in each state that works under the ministry and oversees the company registration process. A business owner might not know how to reserve the company’s name with the Ministry of Corporate Affairs.
A company registration advisor will help submit the request for a name reservation. The SPICe+ form available on the ministry’s online portal is used to submit a request for a name reservation. One can submit two proposed names for the company in the order of preference.
The ministry takes a few days to approve one of the suggested names. Sometimes, another business organization already takes the proposed name of a company. The ministry will not approve the company’s name in such a case. The business owner will have to obtain NOC (No Objection Certificate) from the existing companies with the same name. With the help of a company registration consultant, a business owner can obtain NOCs for a name reservation.
Submitting the incorporation application
The ROC in your state will confirm the company’s name. Within 20 days of name approval from the ROC, the business owner must submit the incorporation application to the concerned ministry. The incorporation application in India includes the Part B of the SPICe+ form and the AGILE Pro form. The incorporation application also acts as the professional tax registration form. Several details will be required along with the incorporation application, like:
- Details of the company director(s)
- Memorandum of Association
- Article of Association
- Declarations from the directors and subscribers
- Directors’ consent
Besides the information mentioned above, many other details are required along with the incorporation form.
For example, if a subsidiary of a foreign firm is being opened, some additional information might be asked. As a business owner, collecting several details might be a hassle. Also, the business owner is responsible for accurately filling out all the details in the incorporation application. A company registration advisor will help business owners submit the incorporation application without mistakes. If there are mistakes in the incorporation application, it might be rejected by the ministry.
In India, there are some steps for business owners after the incorporation of a company. Within 15 days of the company’s incorporation, the proof of office existence is submitted to the respective ministry. Certain documents are submitted to the concerned ministry to show proof of office existence. The INC 22 e-form is presented to show proof of the official space after incorporation. A company registration consultant will support the business owners after the company’s incorporation.
Advisory throughout the incorporation process
Throughout the incorporation process, a company registration advisor will give expert suggestions. It will prevent the company from drifting in the wrong direction. Company registration advisors also help business owners choose the right business structure and name before incorporation. They will help business owners navigate through complex incorporation laws.
In a nutshell
As a business owner, one should think of hiring full-time company registration consultants. Instead, choose a CA firm with expert registration consultants. By doing so, the business owner will save some bucks on company registration processes. Incorporate your company legally now.