Starting a new business is a great idea but simultaneously it comes with a lot of responsibilities, also having just an idea is not enough. If you are starting a business then the very first thing which you need to do is selection of an entity for your business. There are various types of companies given under the company law of India. It depends on the business requirements which will be best suited for the business. Choosing an entity is not an easy task. Sometimes people end up by choosing the wrong entity due to which their business has to suffer in many different ways. Hence in order to save your business from any kind of sufferings which may prove fatal to your business, always make sure that you will take help of a professional while doing company registration for your business. Don’t try any DIY because this may collapse your business.
Professionals who can Help with Online Company Registration
CA, CS or lawyers are the best choice for the private limited company registration or any kind of company registration in India. You can also take assistance from the legal consultancy firms like startupfino who are having all of these professionals in house for providing such kinds of services. These professionals possess a lot of knowledge and experience of business and are also aware of all necessary laws. They help businesses while complying with the legal requirements, government processes, to complete the registration process of the companies etc. By hiring such professionals, companies can save a lot of effort, valuable time as well as money.
DIY Approach of Registration of Companies
Do-It-Yourself Approach or DIY means that the company does each and everything on its own. Here the company does not hire any Professional services to manage its affairs. Here, the company does all the work on its own such as documents submission, registration of the company, applying for licences etc. For what company is trying to do all these things, just to save some money. It is one of the most vulnerable approaches you can opt for. If you think that your business will grow this way you are in the wrong direction. Maybe by doing so you will save some money initially but later your business has to pay for the same. Hence do not opt for any kind of DIY while forming your entity.
Comparison of Professional Services and DIY Approach for Registration of a Company
In order to understand the advantages of the professional services it is important to compare them with the DIY approach. Given below is the table of the comparison between both of them:
| Professional Services for Company Reg. | DIY Approach for Company Reg. |
| Professionals are always aware of new laws as well as old laws which are applicable on the companies and their registration | One who is approaching the registration of the companies by doing DIY is not fully aware about the laws and regulations applicable on them, hence there are chances of error |
| They remain up-to-date and thus guide the companies accordingly. | May be they are not having idea about the new changes in the laws and regulations of the companies |
| Professionals are experts who possess knowledge and experience. They are skilled at their work and know what is best for the companies. | They are not having relevant experience and knowledge. They will do the things by acquiring the half knowledge given on the online platforms |
| When businesses hire external agencies, they can save a lot of their precious time. As these agencies handle a lot of companies’ work, the companies can freely focus on their growth. | If both the companies legal and regulatory as well as other business related things are handled by the company itself then they cannot freely focus on their business growth. |
| Professionals manage even the minute things very carefully. | They may not give the attention towards the minute things of the companies |
| Professionals saves the companies from heavy fines and penalties | They may drag a company towards heavy fines and penalties |
Drawbacks of DIY Approach for Registration of Companies
Using DIY approach in order to register or incorporate a business is not at all recommended because of the following:
Time and Money Consuming
All businesses are not well versed with the registration or setting-up process. Therefore, managing everything on your own can be time consuming as well as money consuming. There are many start-ups who do not have much funding. In such cases, hiring Professional services can lead to an increase in the cost. Hence, choosing professional services over DIY approach can be more beneficial.
Can’t Handle Legal Complexities
All the businesses have to comply with many legal requirements as well as regulations. These rules and regulations must be fulfilled because if you miss any of them there are chances that heavy fines or penalties may be imposed on your business. So, it becomes very difficult for businesses in such scenarios. Also it will harm the business reputation in the market. Hence to fulfil all the legal conditions must take professional assistance instead of DIY approach
Unnecessary Errors and Delays
As the businesses are not experienced, they find it difficult to cope up with all the procedures by DIY approach.Thus, they make mistakes during documentation, filing forms etc. These mistakes cause delays in submission of those documents. Hence, to avoid such kinds of issues, help from an external agency who provides professional services is a must.
Non Compliance with Laws
In the starting of the businesses, companies are inexperienced and are not well versed with the laws applicable on them. Due to this, they unintentionally break the laws which need to be followed. This leads to imposition of fines and penalties on them. Also they already have a lot of other things to manage due to which they cannot keep themselves up-to-date with new laws. Hence it is better to take help of a professional.
Professional Services or DIY Approach which is Better Option for Registration of Company
After discussing both the approaches in detail, let us see which approach is beneficial. There are some businesses which require a lot of paperwork and documentation for setting-up. Hence, hiring Professionals to carry out this work is beneficial for the company.
If the owners want to start the business as fast as possible, then hiring professional services is a better option. These services can speed up the set up procedure of the company. If the company has employees who have less experience and knowledge of new laws. Then in such cases choosing Professional Services is a better option.
Conclusion
All the businesses have different needs and according to their needs, they must choose among the various types of company or entity registration given under the company law. Hiring Professionals for the registration or incorporation of the business may be little costly, but is beneficial as it has no risks. However, on the other hand, DIY approach is cost effective, but can be risky at times due the lack of knowledge and experience of the owners.The online company registration can be done better with help of the professionals. Therefore one must choose professionals over the DIY approach of the company formation.
FAQs
- What are the Different types of entities under the Company Law?
There are different types of companies under the company law. They are Private Limited Companies, Public Company, One Person Company, Partnership, Sole- Proprietorship, Limited Liability Partnership etc.
- What are the different types of Registration of Companies under the law?
There are different kinds of registration of companies such as Sole Proprietorship Registration, registration of OPCs, Partnerships Firm Registration, Limited Liability Partnership (LLP) Registration, Pvt Ltd Company Registration, Public Companies and Registration of companies for charitable purpose (eg. NGO).
- Which law governs registration of companies in India?
The Companies Act which came in 2013, regulates the registration of companies in India.This replaced the Companies Act, 1956 in order to check company registration in the Indian land.
- What is Company registration process?
In order to register a company one needs to complete the Form Spice+Part A and Spice+Part B. Both these forms are available on the MCA that is Ministry of Corporate Affairs website
- What are the key documents required for the registration of Companies?
There are some documents which have to be submitted during registration. They are PAN, Adhar Card, Digital Signature, ID proof, and Address proof.
- How does DIY affect the registration of the companies?
DIY mostly affects the companies and their registration adversely because of the lack of knowledge and expertise.
- How can individuals get started with Startupfino’s services for company incorporation?
One can avail the registration of company services of the startupfino by simply visiting their website and approaching their business executive.
