12 Common Mistakes to Avoid During Online Company Registration

" Company Registration- A step towards building a legal and lawful environment"

When you are willing, to begin with, the new venture the ultimate step is the company registration process that makes your dream of entrepreneur valid. While registering a company in India, all the measures have to be followed rigidly, and more than that they have to be followed precisely. Nothing could be shifted through the crack as that can cause major hindrances. Here are some of the common errors that need to be withdrawn during the startup India registration procedure.

In the following paragraphs, you will cater to 12 mistakes done by the entrepreneurs while enrolling for Online Company Registration

Kinds and Incorrect Company Names in Company Registration Form

Any business gets noticed first by its name and trademark or logo. Therefore the company name cannot be gone for a toss and one has to pay study while filling out the name application form. The application has to be double-checked during the decisive evaluation screen before submission.

Forget To Add the Suffix in Company Names

At this point, people do take very much leniency which is not right. When you pick a name for getting its reserved or submit for name approval you must add a suffix of what type of company you are registering. This is so much mandatory for all the people who want to make Company Registration. Otherwise, their application might get rejected at any point. Suffix for company registration are:

1) Private Limited Company- Pvt. Ltd

2) Limited Liability Partnership- LLP

3) Nidhi company- NIDHI LTD

4) One-person Company- (OPC) PRIVATE LIMITED

This is the suffix you have to add on while apply for online company registration in India.

Selecting the wrong company type during registration

The company structure in India is very defined to have their own features. There are many kinds of companies like:

1) Private limited

2) Public limited

3) Limited liability partnership

4) Section 8 company- a non-profit organization

5) Sole proprietorship

6) Partnership

7) One Person Company

8) NBFC Company

Everyone has its own benefits and limitations. For instance, in a private limited company, there are some legal limitations and the company is limited, it has a few people. On the other hand, is a public limited company, there is a huge scope wherein the owners can build the capital by shares. Though, by adhering to legal rules. It is advised to connect with industry experts to know the legalities associated while registering the particular type of company. It's suggested to go for an online CA service or else contact the CA/CS near you.

Inexact supporting data in the company registration form

While applying, many supporting documents are submitted and the data specified in the documents have to be right. Invalid and incorrect data give room for denial of the company registration application in the ROC office that is the Registrar of the companies.

Wrong share allocation of your company

Share allocations have to be properly taken care of. While forming a company it is necessary to determine the share structure; combining the share classes, various amounts of shares, and rights for a particular share class. A proper share allocation avoids additional complications and costs.

Computing too many directors and shareholders for the company

It is not required that all directors who are going to move the company to become shareholders and owners and vice versa. Shareholders have an equitable share of the profits and rights within the company, and directors have separate contracts. Both the directors and shareholders must be informed of their roles and the company must have the exact numbers as designated in the Companies Act 2013.

The absence of shareholder’s agreement in your application especially in partnership and LLP

Often when entrepreneurs venture, they essentially look for building the projected income, growing the business, bringing investors, improving the infrastructure, etc. There are great chances they jump important documentation and agreements and one such thing is a shareholder’s contract or agreement. This again may be sounding lesser but generates a huge impact in the long run, if not done. A shareholder agreement must have the terms on what needs to be performed in the event of shareholder(s) death or withdrawal, and so on. Also, the agreements will never infer to the in future disputes and conflicts. So, the agreements should be made in company incorporation.

Faulty business information

This may sound very easy but without a clear-cut idea on how the corporation will benefit a shareholder, what are the terms laid out for various sorts of shares that the business goes to supply, what are the voting rights of every shareholder, a business description can't be mentioned. Hence, it's important to possess an honest lot of data on shares and other aspects to avoid any future conflicts. None of the things should be neglected as which will cost more. it's always better to require time and seek professional help about choosing the number of shareholders, directors, etc.

Lack of awareness of local business laws and taxes

Although companies are administered by the Companies Act 2013 in India, the principles and laws may vary depending upon the state or city the company is enrolled in. It's difficult for business people to understand all the prevailing taxes and laws. Hence it's better to speak to professionals who can provide the proper guidance. A basic understanding of the tax structure and business laws surely helps.

Picking the wrong service provider for company registration

There are lots of service providers giving different types of services related to company registration. Before zeroing down, careful research on the credibility of the service provider has to be done. " CA& CS services always do processing through government portal only, they know all answers to your demands and requirements.

Purchasing a complete package of Company Registration

With enhanced options available in the market, picking a budget package might be tempting but examining all is more important. It has to be cost-effective and cover all the necessary things about online company registration. The complete package will give you all things from the start to end the process of the company registration service.

Conclusion

If you're starting up a company in India. The most essential procedure is to take the whole guidance of CA/CS near you. To help business in online business registration in India, we at LegalPillers offering you a platform for online company registration. You can register all types of company and their incorporation is simplified with us. There are various kinds of companies for registering like private limited company registration, One Person Company Registration, etc. LegalPillers is an online preeminent online portal for online CA & CS services in India. If you are looking for any kind of assistance related to Online CA Services feel free to call our expert at 9625279785 or 9267941961 and you may write us at info@legalpillers.com.

What are the best ways to start a Private Limited Company?

So, setting up a company or business is not a difficult task when you have full-fledged teams, licenses, and registrations. The legal services assistance is like the cherry on the cake. The advice can work always like wonders. So, here if you are so much into starting a company in India as a private limited company . Establishing up a limited company is a great way to begin your business adventure. A limited company is a company that is legitimately separated from you (or whoever operates the business) and has separate finances. This is a very simple business structure people prefer and process. These steps to Register Private Limited Company includes two extensive steps more classified into four steps. The first step is DSC then the name approval and reservation and the third documentation preparation and last step is the application of company incorporation . Here are the ways to follow to get a private company registered Obtain a Digital Signature Certificate The init...

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