Are you looking to setup a legally registered Event Management company in India? If so, then you are on the right page. In this blog, you will get all the information regarding the incorporation procedure for an entity under the Company Act, 2013. The legally established business enjoys several benefits in terms of compliances and tax liabilities. Anyway, before unveiling the procedure of incorporation, we would like to shed some light on the fundamental of this industry.
What is an Event Management Company?
Event Management Company represents those categories of entities that deal in organizing different types of special events for their customers such as ceremonies, celebrations, workshops, product launches, conferences, and events for public gatherings.
“Event Management”, by definition, is the process by which events are planned, created, and assessed. Events are brought to existence by way of project management. Besides, it can also be described as the act of managing a project such as a convention, tradeshow, marriages, etc.
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Prominent Benefits that an Event Management Company Renders to its Customer
- Save money and time Professional-based planning and execution
- End to End execution
- Post-event analysis
- Availability of creative ideas
Why an Event Management Company should be registered in India?
Event Management company should operate as a legally registered entity owing to the following reasons, which are given below:-
- A registered Event Management company is more likely to earn prompt credibility in the target market, unlike the unregistered firm.
- A Event Management company with a legal status tends to grab more customers over the course of time.
- Legal status can help the Event Management company to leverage several tax-related benefits launched by the IT department.
- A legally established Event Management company would continue to stay in existence even after the demise of its shareholders or members.
- The Event Management Company registered as a private limited company can generate funds via debentures and stockholders.
- Event Management company under a legal status supports the inflow of investment coming from overseas companies.
How to Register an Event Management Company as a Privately-Held Organization?
A Private Limited Company is a privately maintained entity, which is one of the most profitable business forms in India. The Companies Act 2013 regulates the privately maintained entity registration in India.
While a minimum of 2 shareholders is needed to set up a private limited company, a higher limit is capped at 200 as per the guidelines of the Company Act, 2013. If the privately limited Event Management company encounters fiscal risk, its shareholders are not required to compensate for a sale by selling their personal assets.
The inclusion of at least two directors is compulsory for the private limited companies to obtain a registration from the Ministry of Corporate Affairs. Besides, a maximum of 15 directors can be appointed in such a company. An eligible candidate from an overseas location can also apply for a Directorship position in India.
Procedural Instructions to Register an Event Management Company
On 15th Feb 2020, the Ministry of Corporate Affairs[1] came up with a new web-based form viz SPICe+ for incorporating the company under Company Act, 2013. The newly launched form is comprised of two sections viz: Part A- Name reservation for new entities and Part B- enclose host of services listed below:
Part A- Name Reservation
Obtaining a name registration is the first step in the incorporation process. We have mentioned procedural instructions for the same given below;
- First, go to the MCA’s website and completes the login formalities.
- On the home page, visit the top menu to open “MCA services” followed by the SPICe+ option.
- On the subsequent window, tap on the “New Application” and fill up the following fields.
- Type of the company
- Class of company
- Category of company
- Sub-Category of company
- Main division of industrial activity of the company
- Description of the main division.
- Next, provide the two proposed name of your choice for your company.
- After opting for the Auto Check option, the portal shall initiate the verification process by leveraging its database for the name availability.
- After the completion of the verification process, the portal will show the result for the same.
- Upon receiving the approval, click on the “Save” button located at the bottom of the page.
- Hold on until you receive the confirmation messages, and then hit the Submit button.
- A small window shall appear on the top of the page. Make sure to click on the option viz “submit for name reservation”
- On the subsequent window you will receive the message regarding the fee submission. Make sure to note down the SRN as it let you track the status of the application in the future.
- Click Pay now to submit a fee regarding name reservation.
- Once you are done with PART A, precede with the incorporation i.e. the PART B of the SPICe+ form.
Part B- Incorporation Details
Part B comprises several sections for check form for each section. The details needed for incorporation are as follows:
- Location of the company (registered one).
- Proposed directors & subscriber
- Resources available at the company
- Apply for tax registrations i.e. PAN and TAN.
Undertake a pre-scrutiny check. A confirmation message shall prompt after the submission of the form.
Download the PDF related to Part B for attaching the DSC and for filling up other crucial linked forms along with Part B. The forms that linked with SPICe+ include AGILE-PRO, SPICe + MoA & SPICe + AoA, URC-1 & INC-9. The part B of SPICe+ & linked form can be submitted to the MCA’s website. An SRN is generated against the payment made towards the private limited company incorporation.
After successful payment submission, the form would be processed. In an event where the application requires resubmission for any flaws being detected by the authority upon processing, resubmit the form
List Of Documentation Required For Incorporating Event Management Company
- The Articles of Association and Memorandum of Association
- Declaration by the directors and subscribers
- A confirmation regarding the address of the office
- Two months old utility bills copy
- Certificate of incorporation.
- Nominee’s assent
- Identity proof & residential address of the subscribers & nominees
- Identity proof & residential address of Applicants
- The Declaration/Resolution of the unregistered companies
For AGILE-PRO
- Proof of principal place of business
- Evidence of appointment regarding the Authorized Signatory for GSTIN
- Either of the documents– Letter of Authorization/Copy of Resolution passed by Board of Directors (BOD)
- Managing Committee & Acceptance Letter
- Authorized Signatory’s identification proof for the opening of a bank account
- Authorized Signatory’s address for the opening of a bank account
- Authorized Signatory’s signature for EPFO
Conclusion
Given the current trends, registering an event management company not only allows attracts more customers but also opens up possibilities for long-term sustainability. The process mentioned would enable you to obtain company registration with ease. In case if you come across some complexities regarding the same, it is advisable to contact CorpBiz’s expert. The professionals at this platform are not only expertly skilled but also hold sufficient experience to render the best of the services to the clients.
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