If you are a new business owner and want to enhance your business credibility in India, it is absolutely essential for you to provide authentic business registration proof. No enterprise can function legally without completing the business registration process. These documents will help you build a successful business relationship with suppliers, clients, and stakeholders. A legitimate business certificate of registration will build up the trust of the business associates in the company. A business owner cannot borrow money or apply for credit without this proof of business. While signing any business contracts or any government-related documentation, the business registration proof will enable legal binding.
Let us explore the details of business registration proof, its different types, how to get a business registration certificate online, and more.
What is Proof of Business Registration? Why is it Important?
A business registration proof is an official document issued by the relevant government authorities to verify the identity and legal compliance of a company. An enterprise can function and carry out business operations with valid proof of business. Once registered, the business gets a registration certificate or a unique identification number. This can be used to keep track of a business’s financial records, legal compliances, as well as any tax liabilities. Being compliant increases credibility and confidence in the business, which can lead to stronger partnerships and customer loyalty.
Additionally, business registration proof may also make your business eligible for government initiatives like subsidies or tax benefits.
What are the Different Types of Business Registration Proof?
Various documents serving as proof of business registration may be necessary for every company, depending on its operations and nature. If you are intending to get one for your company, make sure to go through the common types as mentioned below:
GST Registration
If your company exceeds a certain annual turnover threshold, Goods and Services Tax (GST) registration and provisional certificates are required. Business owners who are required to pay sales tax, service tax, or professional tax certificates can obtain these documents from state government agencies. These serve as proof that the business is registered with the relevant tax authority.
Certificate/Licence issued under the Shop and Establishment Act
This document is a business proof of registration under the Act that regulates working conditions in different establishments, and is issued by local authorities.
Ten-digit Code for Import/Export Operations
An IEC (Import Export Certificate) is necessary for companies dealing with import and export operations. The Director-General of Foreign Trade will verify your registration with this certificate.
Registration Document issued by the Labour Department
This record verifies that a business is registered with the labour department of the state and attests to its adherence to labour laws.
Agricultural Board Trade Licence
This licence is required for companies that deal in agricultural products and have evidence of registration with the Agricultural Board.
Food and Drug Control Certificate & Medications Licence & Registration Certificate (Medical Council of India)
These certificates prove that companies in the relevant sector are in compliance with food and drug laws.
Factory Licence
Required for businesses in the manufacturing sector. A company owning a single or multiple plants in India needs to acquire this licence.
Central/State Government Contractor Licence
This document attests to the company's registration with the relevant authorities, and is necessary for businesses to bid on government contracts.
SEBI Registration Certificate
The SEBI Registration Certificate is a crucial document for investment advisors and stockbrokers, signifying their registration with the Securities and Exchange Board of India (SEBI).
Municipal Corporation/Local Government Body Registration Certificate
The above document may vary from place to place, this document attests to an organisation's registration with the appropriate local government body. (For instance, the Maharashtra Gumastha Certificate.)
Udyam Certificate
Udyam registration is now mandatory for all MSMEs. It provides multiple benefits to help MSMEs succeed, like collateral-free loans from banks and financial institutions at subsidised interest rates. Simplified process of obtaining licences, permits, registrations, and approvals.
FSSAI Licence
A food business's compliance with the FSSAI's food safety regulations is certified by the FSSAI licence. Because customers are more likely to trust a business that prioritises food safety and quality, this certification contributes to the development of customer trust.
What is the Business Registration Process in India?
There are several businesses functioning in India at the same time, and the process of business registration will depend on the nature of the enterprise. The 2 most common types of registration are Private Limited Company and Limited Liability Partnership (LLP). However, there are a few common steps that a company needs to follow to get registered, which are mentioned below:
- Director Identification Number (DIN) Application: While applying for the unique 8-digit DIN number as per 153 of the Companies Act of 2013, all company owners must provide details such as their full name, father's name, DOB, identity verification, proof of address, Permanent Account Number (PAN) card copy, and 2 photos.
- Apply for a digital signature certificate: Getting a legitimate digital signature on every document submitted during the process of completing the DIN-1 Form is necessary to ensure the authenticity of the information and documents provided.
- Registering for the Ministry of Corporate Affairs (MCA) Portal: The next part of the registration process, requires all business owners to register and obtain a login ID on the MCA portal. Please register an account before submitting an electronic form in order to fulfill the requirements stated below.
- Fill in the Memorandum of Association (MOA) and Articles of Association (AOA): The applicant should draft these documents and submit them to the MCA portal.
- Apply for the company name: In this step, the company needs to register their proposed company name. The RUN (Reserve Unique Name) service is available on the MCA website.
- Get the PAN and Tax Account Number (TAN): The final step in the registration process includes the attainment of the 10-digit number by the Income-tax Department known as a Permanent Account Number (PAN) in order to pay income tax or carry out any financial transaction. People who deduct or collect taxes at source on behalf of the Income Tax Department are given a unique 10-digit alphanumeric code known as the Tax Deduction and Collection Account Number (TAN).
Conclusion
The Indian business ecosystem has transformed in the course of time, and new enterprises are taking advantage of this growing opportunity. Since there is a surge of budding entrepreneurs, there is a steady need for business registration certificates online. A business registration proof establishes legal identity and increases credibility in the eyes of partners, suppliers, customers, and lending institutions.
Starting a new business or expanding a current business requires sufficient capital, which can be obtained through small business loans. There are different types of business loans available in India, such as working capital loans, term loans, and start-up loans.
SMFG India Credit offers small business loans at competitive interest rates, tailored to factors unique to your business such as location and net income. Moreover, no security or collateral is necessary for loan amounts of up to INR 75 lakhs*. Our convenient online application process consists of only 3 steps: checking the eligibility criteria, submitting the application and documents, and waiting for the loan approval and disbursement.
* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us