Every day, new companies come into existence in different jurisdictions. These new companies go through a registration process to start business operations. The registration process is mostly the same for all new companies, irrespective of size and type. Any business ignoring the incorporation rules might be termed illegal by the concerned authorities. New business owners and directors do not know much about incorporation laws. For the same rationale, they count on third-party company registration services. With external support, business owners can successfully incorporate their companies per the legal guidelines. Read on to understand why one should count on a company registration service provider.
1. Know the documents required for company incorporation
The company registration process includes submitting several forms to the respective ministry. Several documents accompany company registration application forms. For example, the business owner must produce proof of identity while setting up a new company. Similarly, the digital signatures of all the company directors are required for incorporation. Since there are numerous requirements, business owners might be confused.
Also, the incorporation process will remain pending due to the lack of required documents. A company registration service provider will help you collect the necessary documents for the incorporation process. Before starting the process, business owners must organize the required documents. It will ease the incorporation process of the business owner(s).
2. Get the desired name for your company
A business owner must have decided on a particular name for their company. Usually, shareholders and business owners have a company name in mind before incorporation. In India, a company cannot assume any name for itself without notifying the concerned authority. The same is the case for company name reservations in other countries.
In India, one has to submit the Part A of the SPICe+ form to the Ministry of Corporate Affairs for company name reservation. Then, one can send two proposed names for the company to the ministry via the application. One of the names will be approved for the company by the ministry. When the proposed name is already in use, the business owner has to obtain NOCs (No Objection Certificates). A third-party offering company registration services will help obtain NOCs from the existing companies. If the existing companies deny sharing their name, one can always choose a new name for the company.
3. Submit the incorporation form accurately
After name reservation, a company must submit the incorporation form. The business owner must submit the Part B of the SPICe+ form to the ministry for the company’s incorporation. The incorporation form must be submitted within 20 days of the company’s name reservation. The business owner will produce some details along with the incorporation application.
It might include the director’s consent, MoA, AoA, director declarations, and other information. With external support, a business owner might not produce all the details required for the company’s incorporation. When the incorporation application is not complete, it might be rejected by the concerned ministry. With the help of company registration consultants, a business owner can ensure the incorporation application is submitted with the right details.
4. Submitting post-incorporation proof to the ministry
In India, a company has to submit proof of office existence to the ministry after incorporation. After the ministry has cross-checked the incorporation application, it issues a certificate of incorporation to the respective company. The rule says that a company must submit proof of official space within 15 days of getting the incorporation certificate. Company registration consultants will help you submit the proof to the ministry post-incorporation. It will help you meet important deadlines throughout the incorporation process.
5. Avoid legal hassles
There are many rules associated with the incorporation process for companies. The employer license of an individual might be canceled for ignoring the rules. Similarly, the registration of a company might be canceled on non-compliance with incorporation laws. A third-party offering company registration services will help a company follow the law. Sometimes, business owners commit a legal offense unknowingly. As a result, they end up getting their registration canceled. A third-party firm will have expert individuals familiar with the incorporation laws. Business owners can hire professionals to protect their license against these situations.
6. Cost savings
Business owners should always focus on partnering with a company registration service provider. Usually, CA firms are best at offering company registration services in India. There’s no point in hiring full-time company registration experts to incorporate a new business. Why waste funds on recruitment and training of full-time company incorporation experts?
By partnering with a third party, you will have access to company incorporation experts at a lower cost. Also, the third party will provide support throughout the incorporation process. Some third parties also extend post-incorporation support to the company.
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