India is one of the fastest-growing countries in the term of economy. New start-ups are the thing to look upon, but there is a tendency for avoiding the registration of the business. Despite having, internet world, there are lots of misconceptions about company registration.
Company registration is the first step for the establishment of any business. It also gives multi-benefits as compared to the unregistered company. There are many myths and misconceptions about the company registration and about the maintenance of a corporate entity that is why many Entrepreneurs start their business as a Proprietorship or Partnership.
Given below are some misconceptions about the company registration
Incorporation is expensive
Previously, for company registration, one has to pay the whopping amount of Rs 50,000 approximately. Due to an online process that makes the procedure transparent and clear. Now, registration of a company can be easily done at the cost of Rs 20,000/-including all expenses through Legal Raasta.
In the registered company, it is mandatory to have Anual General Meeting every year and the board of directors meeting, if any special resolution has to be passed. However, conducting all these meetings are neither time to consume nor need a special effort by any means. Postponing the company registration for this reason if wage.
Low taxes liability on Partnership/LLP
Every registered partnership firm, Limited Liability Partnership, One Person Company, Private Limited Company, and Limited Company has to pay tax. It is not appropriate to say, the tax liability on the company is higher than the other. All of them has the same income tax rate liability of 30%, whereas proprietorships are taxed similarly to individuals in India
If certain criteria are met, then even proprietorship and partnership firms have to audit the books of accounts. Whereas, in Private Limited Company it is mandatorily required to audit the books of accounts during each financial year.
A requirement of Commercial Office Space
The address of own residence or rented home can also work as the registered office address of the company. It can be easily changed, after the company incorporation.
Home-based businesses don’t need to register
Once the business, is established irrespective of the place where it has been started, it is always the best idea to go for company registration. It gives the status of the company in the market and develops a trust factor in customers towards the company. Moreover, it lessens your personal liability for any mishappening in the company.