Businesss Registration Overview
Registering a business means turning your sole proprietorship, general partnership or any other business format into a legal entity. When an entity gets legally registered, it has a legal identity. Thus business registration transforms the way the business is seen through the eyes of the law and often has more credibility with potential customers, vendors and employees. Get Company Registration in Delhi entirely online via Aplite Advisors.
Further, if you’re looking to raise funding, investors probably would never invest in a start-up that is not registered. We, at Aplite Advisors can assist you in registering your business and contribute in achieving great heights.
How does registration work?
Wondering how to register a business as a Private limited, public limited company, LLP, Trust or other legal business structures existing in India? Here are some of the steps included in the process:
Determine where you want to register. Aplite Advisors can suggest you office places/ locations which are suitable for your business.
Decide which business type is best for your business and goals. Aplite Advisors can advise you with best options suitable for your goals.
Select your legal guide. Your legal guide will assist you in finding right structure at right place to accomplish your ambitions. He will further handle important legal and tax documents on behalf of your business. Aplite Advisors includes this service in all incorporation packages.
Determine which business licenses/ registrations are required for your business. If you plan to hire employees, you may need a provident fund registration, employee state insurance registration, professional tax registration, etc, and if you are selling goods/ services, your business may also require a GST registration. Aplite Advisors provide bundled services including license services, regulatory and tax registrations.
Indian as well as Foreign businessmen are invited to contact our team of consultants for in-depth assistance on the compulsory registration steps applicable to Indian business. Our specialists also assist with advice on the documents that have to be submitted with the local authorities and offer assistance on the most suitable type of business to be registered.
We make it fast, easy and affordable.
Choosing the right business structure
The right business structure will allow your enterprise to operate efficiently and meet your required business targets. Each business structure has its own compliances, and therefore you need to keep this in mind while setting up an entity in India.
For instance – a company needs to file annual return with the company registrar and income tax return with the tax authorities. The company’s books of account are audited mandatorily every year.
Our team of professionals at Aplite Advisors can help you choose the right business structure when thinking of registering your entity in India.
Before we understand how to register a business, let’s try and understand the types of business structures in India.
- One Person Company
- Private Limited Company
- Public Limited Company
- Limited Liability Partnership
- Partnership Firm
- Section 8 Company
- Trust/NGO/Society
- Sole Proprietor, HUF
How to choose a business structure while applying for registration in India?
Let’s take a look at some important questions every entrepreneur must ask himself before he finally decide upon a business structure.
If you are a single person who owns the entire initial investment required for the business, a One Person Company would be ideal for you. On the other hand, if your business has two or more owners and is actively seeking investment from other parties a Limited Liability Partnership (LLP) or Private Limited Company would suit you best.
The answer to that question is – Yes, if you want to spend less initially, it would be wise to go in for a Sole Proprietor, or a HUF or a Partnership. But, if you are sure that you will be able to recover the setup and compliance costs, you can opt for a One Person Company, LLP or a Private Limited Company.
Business structures like sole proprietor, HUF and partnership firm have unlimited liability. This means, in case of any default in payments and loans, the entire money will be recovered from the members or partners in their profit sharing ratio. The risk to personal assets is high in these cases.
Whereas, Companies and LLPs have a limited liability clause. This means that the liability of its members is restricted to the amount of contribution made by them or the value of shares each member holds.
The income tax rates applicable to a sole proprietorship and a HUF are the normal slab rates. Whereas, in case of other entities like OPC, Private Limited or a Public Limited company a tax rate of 25% is applicable.
As mentioned earlier, it is difficult to get investments when your business structure is unregistered. Entities like LLP, Private Limited and Public Limited Company have a better market reputation when it comes to lending money. Make sure you choose the right structure, seek the help of an expert so that your business entity serves you better.