For anyone wishing to start a company, registering with India is vital. Many new entrepreneurs, in the meantime, make blunders that could postpone or even impede the registering process. The top 10 typical errors to avoid during Indian business registration will be covered in this blog.
Common Mistakes to Avoid During Company Registration
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Selecting an Unfit Business Name
First stage in company registration is choosing a business name. Selecting a distinctive and easily obtainable name that captures the essence of your business is crucial. The name should not be exactly the same as that of a current firm. It ought also to follow the Companies Act of 2013. Ignorance of a suitable name could result in rejection of the application.
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Invalid TAN and PAN Application
Tax reasons and business registration call for PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number). Applying for them wrongly could cause delays or maybe rejection of the application. Verify that you supply proper information and apply for the right PAN and TAN numbers.
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Inappropriate Article of Association and Memorandum of Association drafting
Among the most crucial papers used in corporate registration are the MOA and AOA. They outline the company’s goals, authority, and guiding policies of behavior. Make sure this paperwork follows the Companies Act and is written precisely. Any mistakes or omissions in these papers can cause legal problems down the road.
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Poor Paid-up Capital
Minimum paid-up capital for business registration is mandated by the Companies Act. Pay the required amount to make sure you satisfy this criteria. Ignorance of this can cause the application to be rejected.
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Lack of Necessary Approvals
Make sure you have the required licenses and permits from relevant authorities before beginning a business. Among them could be municipal permissions, fire safety certifications, and environmental clearances. Ignorance of these permissions could cause legal problems and penalties.
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Incorrect Form Filing
Company registration revolves around forms. Make sure every form is completed precisely and turned in within the allocated period. Any mistakes or omissions in forms might cause delays or maybe application rejection.
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Insufficient Record-Keeping
Keep up good records all through the registration procedure. This covers recording all letters, payments, and approvals. Ignorance of correct paperwork might cause delays and legal problems.
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Delayed Annual Returns Submission
Timeliness in submitting financial statements and annual returns helps to prevent fines. Make sure you provide these papers within the specified period to prevent any legal problems.
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Non-compliance with statutory criteria
Following all regulatory requirements and keeping current with the most recent amendments in the Companies Act will help you. Ignoring orders could cause legal problems and penalties.
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Insufficient expert support
To guarantee a seamless registration procedure, consult specialists like chartered accountants or company secretaries for professional help. These experts have the required knowledge to help you avoid typical errors and traverse the procedure.
Conclusion
Registering a company in India is a difficult procedure requiring meticulous attention to detail and cautious preparation. Steer clear of these typical errors to guarantee a seamless registration experience. You can effectively register your company in India by selecting a suitable business name, applying for PAN and TAN correctly, drafting accurate MOA and AOA, meeting paid-up capital requirements, obtaining necessary approvals, filing forms correctly, maintaining appropriate documentation, submitting annual returns on time, complying with statutory requirements, and seeking professional advice.
