In the last few years promotion of digitalization by the government is at its peak. Up to a certain extent they were successful as well. Today most of the things are digitized. Whether we are talking about paying bills, tax, or company incorporation everything can be done while sitting at home. Best thing about digitalization is that it saves your time, efforts as well as money. Now for the incorporation of the business one doesn’t need to vendor window to window of the government departments. If you are planning to incorporate your business you are on the right platform. There are many advantages to registering a company online. Few of them will be discussed in the current blog. Hence if you are interested to know about the five important reasons to register a company online keep reading this blog till the end.
What is Online Company Registration?
In India Companies Act 2013 is there to govern the corporate bodies. Governing means their incorporation, compliances, wind up, regular working etc, everything is done as per the company law. Under the same law a government portal has been established in order to register a company online. The name of that portal is the Ministry of Corporate Affairs. The registration of entities through this portal by submitting an application before the registrar of companies is known as online company registration.
Companies that can be Registered Online
In order to register a company online, you need to choose a type of entity for your business first. Under the law there are many types of entities which can be registered online. Few of them which are most preferred are mentioned below:
- Private Limited Company which can be register online with just two directors
- Single business owners can opt for the option of One Person Company commonly known as OPC
- Public Limited Companies are also there in the option
- If you want to start a company with charitable purposes then you can choose section 8 company. It is a kind of non-government organization
- Business owners who wants to start their business in partnership can go with the newly evolved version of partnership firms that is LLP, Limited Liability Partnership firm
What are the Five Reasons To Register a Company Online?
In general there are many reasons due to which one can register his or her company online. Out of those key five reasons to register a company online are mentioned below:
Registration at your Comfort Place
As the entire process of registration is online one can do it from anywhere he or she is comfortable. Business owners do not need to vendor here and there in order to complete the process. Even they have the option to hire an expert who can do their work easily. This will save your time as well as efforts which you can put somewhere else. It is a time saving process. Hence you should opt for the same.
Credibility and Reliability in the Market
In the competitive world where every now and then new businesses are opening, it’s really important for the success of a business to earn credibility and reliability in the market. This will not only help in the firm establishment of the business but also helps in making profit. In today’s era businesses which are credible and reliable are at their peak. Therefore one must register a company online in order to gain both of them.
Build Customer Trust
As these entities are incorporated under the government platform after proper verification they are reliable among the customers. Such entities attract customers towards themselves because customers can check each and everything regarding these companies online on the platform of the Ministry of Corporate Affairs. This platform is a government platform hence creates more trust.
Comes with Various Benefits
Such entities which register online come up with a number of advantages or benefits. Some of them are given below:
- Creates goodwill
- Perpetual succession
- Juristic person
- Separate liability
- Distinct from the members
- Limited liability
- Credibility
- Tax exemptions
- Reliability
- Transparency
Attracts Investors
As these companies which got registration online have available their data on MCA. Anyone can check the available data regarding the company without even informing the company. This makes them transparent which is one feature that attracts the investors towards itself. Next thing is that they are supervised by the government itself through various compliances. Hence there is no chase of frauds and all. Hence investors prefer to invest in such kinds of entities.
Process to Register a Company Online
Given below is the step-by-step process to register a company. Follow the steps given below carefully and register a company online without any issue:
- Decide on the type of company you want to register
- Apply for Digital Signature Certificate to sign digitally during the process of registration of company
- Apply for Director Identification Number that is also known as DIN
- Reservation of company name through form Spice+Part A
- Drafting of Memorandum and Articles of Association
- Fill out the Spice+Part B (Simplified Proforma for Incorporating Company Electronically) on the MCA portal.
- Check the same after completing it
- Pay the requisite government fees and stamp duty for your company registration.
- Now there will be a verification by the registrar of the companies
- Once the registrar of the companies approves your application and documents, you’ll receive a Certificate of Incorporation.
- After that obtain PAN and TAN of the company
- Initiate process of GST Registration (if applicable)
- Open a bank account on the name of the company
Documents Required for Online Company Registration
To register a company online there are various important documents which will be needed to complete the procedure. These documents includes but not exhausted to aadhaar card of the key individuals of the company, pan card of the key individuals of the company, address proof of the key individuals of the company, DSC, DIN, MOA, AOA, bank account details, business address proof of the company etc. Without having this information one cannot register its company with the help of an online platform known as MCA.
Conclusion
To register a company online is a good idea with respect to your business. It offers several key advantages in today’s digital age. Firstly, it allows for convenient registration from the comfort of your own location, saving time and effort. This process also enhances the credibility and reliability of your business in a competitive market, building trust among customers due to the government’s involvement. Online registration brings various benefits, such as limited liability, tax exemptions, and transparency.
Additionally, it attracts investors because of the transparency and government oversight, reducing the risk of fraud. The registration process involves steps like choosing your company type, obtaining digital signatures, and adhering to the required documentation. In conclusion, online company registration is a practical, trustworthy, and efficient way to establish and grow your business in the digital era.
