With the Indian government bringing in some sweeping changes to make the country a business-friendly place, it has never been easier to get a company registered. However, people still have some false beliefs about starting a business. And in this post, we bust five popular myths about company registration.
Directors And Share Ownership
A very popular myth is that the director of a company must own a certain portion of the shares. Well, this is absolutely false. The director does not need to have even one share in his name to be designated to that position in the company. The role of the director is simply to manage the business. That’s it.
Office Location Necessary
No. It’s not. You don’t need to spend lakhs of rupees as deposit and then thousands in monthly rent to get an office so that you can be considered as a ‘valid’ business. The only thing you need during a company registration is an address. And it can also be your home, which may be located in the remotest part of the city. In fact, the home doesn’t even have to be yours. It can be rented and you still can incorporate a company with that address.
Single Person Ownership
Think a single person cannot own 100% of a company? Then you are totally wrong. The fact is that you can register as a One Person Company (OPC), owning 100% shares of the business. So, if you wanted to start a company, but were worried about sharing ownership, then OPC is definitely the way to move forward with your dream.
Minimum Capital And Bank Deposit
The requirement for minimum capital was scrapped off in the year 2013. As such, you don’t have to show any minimum capital to start a company. And even if you show a share capital during incorporation, it only needs to exist on paper. You don’t have to deposit the amount in the bank and show it as proof in order to register your business.
Yearly Renewal Required
Somehow, people have a notion that once a company is registered, the registration needs to be renewed every year. This is false by a huge margin. In fact, after incorporation, you never need to pay for any renewal ever as long as the company exists. Neither will any other fee or charges be levied on a yearly basis. The only thing that a registered company is liable to pay yearly is the stipulated taxes from its annual profits.
And if you are planning to start a company, it is better that you start preparing for trademark registration too as soon as possible. However, if your company is already incorporated, but do not have a trademark, then you can start the process to register a trademark today itself by consulting a reputed company registration service.