Role of Chartered Accountant in Company Registration

A very big part of starting a business revolves around company registration, which along with other legal, financial, and administrative steps, is one of the most important ones for most entrepreneurs. Chartered accountants play a huge role in company registration, they assist entrepreneurs to register their companies professionally, legally, with integrity, and free of future legal hassles. The blog addresses the prominent role chartered accountants (CA) play in firm registration.

Understanding the Company Registration Process

Company registration is the legal procedure required to establish a business entity under the law. The procedure of any company is based on the location or perhaps where the company is registered. It involves submitting documents to the Registrar of Companies (RoC) or any other jurisdiction. In this procedure, your business is recognized as an officially operating entity.

The Primary Steps Involved in Company Registration Include

There are few steps that seem quite straightforward and they become a bit complex if not familiarized with the legal and financial aspects of business formation. Follow the steps below to understand how you can form your own company.

 

• Defines the nature of the business structure to be followed in this case, a Private Limited Company or a Limited Liability Partnership, etc.
• Deciding on the name of the company.
• Preparing the Memorandum of Association and Articles of Association.
• Submit relevant documents to the RoC.
• Obtaining a DSC and a DIN for the directors of the company.
• Registration with the RoC and incorporation with a Certificate of Incorporation.

Expertise in Legal and Financial Compliance

An individual Chartered Accountant is pretty conversant with the legal and financial requirements that must accompany company registration. He ensures all documents, from the MOA to the AOA to all other legal forms, are in proper order. For instance, a CA can help in:
 

1. The Memorandum and Articles of Association are drafted and reviewed to ensure that they conform with the provisions of the Companies Act, 2013.
2. It ensures that the name of the company does not go contrary to the provisions of the RoC and that it is not already in use.
3. Advise on the most appropriate type of company structure for your business, depending on your business goals-Private Limited, LLP, etc.

Guidance on Choosing the Right Business Structure

Selecting the most appropriate form of business structure is very important to the survival, growth, and legal protection of your enterprise. On this, your Chartered Accountants may give you advice on the suitability of a form of business regarding your goals, level of risk, and intended longer-term plans. There are various types of business structures:

• Pvt Ltd Private Limited is the most widely used form for entrepreneurs if they want limited liability protection while having the scalability of business activity.
• Suitable for professionals who want to partner but, at the same time, enjoy limited liability is the Limited Liability Partnership.
• A One-Person Company is a new concept applicable in India, thus giving the flexibility of a sole proprietorship but with the added benefits of having limited liability.
• Partnership is a relatively straightforward business structure, with personal liability involved.

Financial Planning and Taxation Advice

Chartered Accountants are not only experts in handling the registration process but also guide you through the complexities of taxation. They help you to understand the tax liabilities, such as GST registration, Income Tax, and other statutory obligations. Here is how CA helps you in financial planning:

• This would enable you to apply to procure a PAN and TAN number.
• Advise on tax-efficient structures.
• It shall guide you in accounting practices and bookkeeping standards.
• File returns on time to avoid penalties.

Filing and Documentation Support

Company registration is quite a paper-intensive affair, and one would not like to get it wrong the first time. Chartered Accountants help their clients prepare and submit these documents to the Registrar of Companies (RoC). These would include:

1. Forms of incorporation: An application for incorporation to form a company.
2. Identity and address proof of directors: Should be possessed to authenticate the credentials of the company's directors.
3. Business address proof: This is to indicate where the business was located.
4. MOA and AOA: Two documents outlining the purpose of the company and its formation rules.

Conclusion

Company registration may seem very confusing for a new entrepreneur. It is chartered accountants who offer critical support to set off on this journey. Be it through legal or financial advisory to ensure your company is compliant and doing all the post-registration. Their expert advice sets up your company for success. Partnering with a skilled CA ensures that your business is sound in terms of legality, and geared toward growth.

Frequently Asked Questions