Overview

Introduction

Why You Should Register

• Legal recognition and better business credibility with clients, vendors, and investors.
• Limited liability ensures personal assets are not at risk.
• Ease in fundraising through equity shares or venture capital.
• Ownership flexibility — easy to transfer shares.
• Perpetual existence — company continues even after the owner’s death.
• Eligibility for Startup India registration, tax benefits, and government schemes.

Compliance and Taxation

• Must comply with the Companies Act, 2013, and file annual returns with the Registrar of Companies (ROC).
• Maintain books of accounts, conduct annual audits, and file Income Tax Returns.
• Taxed at a flat 25% for companies with turnover up to ₹400 crore, plus surcharge and cess.
• GST registration mandatory if turnover exceeds the threshold or interstate trade is involved.
• Other compliance includes board meetings, annual general meetings (AGMs), and ROC filings (AOC-4, MGT-7).

Registration Type

• PAN & TAN (Company)
• GST Registration
• Udyam (MSME) Registration
• Professional Tax Registration
• Current Bank Account

Purpose

• For income tax and TDS purposes
• For tax compliance and invoicing
• For government incentives and benefits
• Applicable in certain states
• For financial operations

When You Should Convert

• You want to raise funds publicly or issue shares to a large number of investors.
• You plan to expand your business internationally.
• You want to offer employee stock options (ESOPs) or list on a stock exchange.