Chartered accountants contribute more to a business’ expansion. Their duties go beyond just maintaining the books and alerting authorities to irregularities. A chartered accountant is knowledgeable about the specifics of account administration. They review the past financial records and manage the company more profitably. Additionally, they play an integral part in each phase of the company registration procedure and are regarded as being of utmost importance. In this article, we will discuss the role of a CA for Company Registration in India.
The typical business structure in India is that of a company. Every company’s legal structure and registration procedures adhere to the Companies Act 2013[1]. Throughout all of the procedures, a company secretary or a certified accountant play a significant role? The registration procedures are controlled by the ROC office. However, the procedures for confirming the various phases are carried out by a chartered accountant. The CA for Company Registration plays a significant role, as discussed in the article.
Duties of a CA for Company Registration
A chartered accountant plays a critical part in the formation of any firm or corporation. It happens at different stages of the process. A chartered accountant cannot be replaced since they are professionals at developing strategies, obtaining business financing, maintaining accounts, managing or monitoring subsidies, and other related tasks.
A CA for Company Registration plays a key role in the following areas:
Drafting A Business Plan
To start a firm, estimate financial projections based on market conditions. They also take the government’s shifting taxation policies into account. Additionally, from the start of the business, chartered accountants contribute to increasing profit margins.
Supports Trade Marking
Technicality and authority are required for trade marking the product. Business obtains a trademark prior to registration. As a result, you can conduct commercial operations without difficulty using CA’s power.
Helps With Business Loans And Overdrafts
Chances of obtaining a loan are higher when a chartered accountant supports your company. A Chartered accountant can assist with questions relating to budgeted revenue and expenses. Additionally, the chartered account can help you select the appropriate loan type and interest rate.
Filing ROC
It can be stressful to submit the company’s annual accounts and returns. No matter the size of the business, these procedures call for legal research and understanding of the “companies act.” You can concentrate on other business operations by giving the Chartered accountant these time-consuming tasks.
For Security
When supported by a Chartered accountant, business deals can be acquired. Because chartered accountants are required to adhere to ICAI standards, your company can quickly obtain credibility. Additionally, search for a qualified CA or a business with indemnity insurance. By selecting a CA with indemnity insurance, you may be certain of the CA’s or the firm’s professionalism. According to the criteria, ICAI examines CA’s performance. Therefore, accountants cannot match the quality and professionalism.
CA For Company Registration – Its Importance
The necessary certificates must be approved by chartered accountants or company secretaries. The function of a chartered accountant is therefore essential during the registration process. Each step of the registration procedure needs to be approved by a Chartered accountant.
The Company must first identify its promoters in order to commence the registration process. The promoters would want to sponsor any firm. In other words, these promoters are the main driving forces behind the creation of the Company because they have the concept to create it.
DIN (Director Identification Number) Approval
An individual cannot be appointed or reappointed as a director of the Company unless the government has assigned him a director identification number, or DIN. The Company must provide all the required documentation to the Chartered Accountant prior to registration. To authorise someone to sign on your behalf, you must then provide an affidavit. The CA or CS will then digitally sign the document and immediately provide the DIN online. In this case, it is difficult to obtain the DIN without the company secretary’s or chartered accountant’s consent.
Approval Of Names
Online availability checks for company names are possible, however registering a company name online is subject to strict guidelines. Even if you choose a name for your business, it shouldn’t be too similar to that of other brands.
According to the rules outlined in the Companies Act, the chartered accountant will assist you in locating the company name.
The ROC office must approve the name approval process within around five business days. But first, the chosen name must receive the endorsement of the chartered accountant or company secretary.
Drafting MOAs and AOAs Before Registering A Firm
The drafting of MOAs and AOAs is one of the crucial steps in the registration of a company. What the Company will undertake following their registration is outlined in the MOA and AOA papers. They also comprise the Company’s policies and procedures.
Drafting the MOA and AOA documents in accordance with the Companies Act is the CA’s responsibility.
The MOA document will contain information such as the company’s name, the location of its registered office, the items required for business operations or the items for which the company is applying for registration, the liability of the participants, and the share capital.
Approval of INC 7, INC 22, and DIR 12
Following the approval of the MOA and AOA papers, documents like INC7, INC22, and DIR12 are examined. Once more, the documents must receive the approval of the Company Secretary and Chartered Accountant, who must also confirm the information provided in the forms.
For simpler communication and notices, the Company may wish to alter the related registered office. The business must submit the digital INC22 form together with the board resolution. The Company is required to file a special resolution that includes the form MGT if it chooses to relocate outside of the city limits.
Business Structures That Necessitate CA – CA For Company Registration
There are three common types of business structures, which are as follows:
- Independent trader
- Partnership.
- Limited Company.
Independent Trader
If you are a sole trader, you must take care of both the legal requirements and the main business operations. There may be too many formalities. In order for your business to operate legally, you must assess your profit margins, register with the tax authorities, pay national insurance, and examine your business’ legal requirements.
Partnership
If you are paired with numerous companies, drafting the agreement should be your top responsibility. Prior to engaging into a partnership or other important arrangement, it is necessary to examine the nature of the company and share profit and loss with the business partners.
Limited Company
A CA is needed to help with requirements pertaining to tax laws, returns, submitting annual accounts and returns, regulations pertaining to publishing accounts, and other restrictions.
Conclusion
Corpbiz goes beyond assisting businesses with tax compliance and highlighting inconsistencies when they occur. The assistance of a CA for Company Registration is quite beneficial for the expansion of the firm and is generally seen as necessary. Make sure you are contacting us if you need help finding a CA for company registration.
Also Read:
Private Limited Company Registration Procedure In India
All You Need To Know About Private Limited Company
5 Eminent Benefits Of Private Limited Company
