![\"Myths](\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Myths-of-Company-Registration-1024x768.png\")
<\/figure><\/div>\n\n\n\nAny Specific Location for a Company<\/h3>\n\n\n\n
Many individuals who have started the startup are not aware of the fact that they can register a private limited company in the residential premises. According to the Companies Act, 2013<\/strong>[1]<\/strong><\/a><\/sup>, there has no restriction in the act for company registration in the residential locations. Though, it is also important for a company to affix its name and have the registered address office at every location they carry the business on. The fact is one can legally register a company in a residential location. <\/p>\n\n\n\n Many scammers have deceived entrepreneurs\nby asking them to submit all the original documents during the company\nregistration process. They tried to cheat people, who are unaware, give such\nfraudulent ways only to realize later. The fact is scanned copies which are\nduly attested by the applicants are only accepted. <\/p>\n\n\n\n There is the misconception that service tax\nregistration is mandatory, which is not at all true. Only individuals who\nprovide the taxable service are required compulsorily to apply for a service\ntax registration. Therefore, providing small scale service providers with an\noption of avail service tax exemption is beneficial for small scale business\nperson who obtain company registration. The fact is service tax registration is\nnot compulsory if your financial income does not exceed the specified bracket.<\/p>\n\n\n\n It is important to have certain amount of\nturnover in the business to register a company, which is untrue. The company\nowners could just start with their new venture. The fact is you do not need any\nminimum turnover to register the company.<\/p>\n\n\n\n It is the myth that every director of the\ncompany must hold shares. The actual shareholders are those individuals who\nhave invested the money in the business. The fact is directors of corporations\nare not required to have shares.<\/p>\n\n\n\n GST, Service Tax or PF automatically applies to the Private Limited companies. The fact is the rate of tax for private companies can be sometimes higher as compared to that of the individual trader or partnership firm. However, there are several possibilities when tax deductions are possible.<\/p>\n\n\n\n It is completely false that natural persons\ncan only be the owners or shareholders of a company. According to a company is\nan “artificial person” and hence an incorporated company can invest\nin the shares of another corporation.<\/p>\n\n\n\n Share capitals of the company must be\ndeposited in a bank at the time of incorporation; which is NOT true. The fact\nis entrepreneurs can find the best flexibility in the Private Limited venture.\nThe moment the business gets incorporated, from that day itself, all\nmodifications related to capital, business, official address and many more is\npossible. <\/p>\n\n\n\n It is the myth that the maintenance of\nlegal teams within a company is very expensive. The fact is there is a minimal\namount of expense when it relates to accounting and tax filings. There are\nnumerous skilled professionals in a field of account like chartered accountants\nor company secretaries who can help with these services at an affordable cost.<\/p>\n\n\n\n Is it mandatory to renew the registration\nof a company every year which is entirely false? The fact is one-time\nregistration of the company, and it is completely done. It will remain forever\nfunctional unless there is winding up the company. Some fraudulent people might\nwant to pay extra money but do not believe them as it is not true. The only\nmandatory thing is the filing of the yearly returns with the ROC (Registrar of\nCompanies) and Income Tax department.<\/p>\n\n\n\n The fact is that requirement is no longer\napplicable, making the process of company incorporation cost-efficient too.\nFurther, with our Private Limited Company registration services, you can get\nthrough the incorporation process in a simple, affordable, and hassle-free manner.<\/p>\n\n\n\n The choice of the business structure plays\nan important role in determining its future. You must ensure that you consider\nall aspects of your business before making this decision. Like other business\nstructures, a Pvt Ltd Company has certain pros and cons too. Ensure that you\npick one that aligns with your business requirements and stays away from the\nmyths surrounding it.<\/p>\n\n\n\n On the concluding note, do not get trapped in the myths of company registration rather research the details through official and authentic channels. Connect with us at Corpbiz<\/strong><\/a> today and ensure to get the best consultation and advice from our skilled team of legal experts.<\/p>\n\n\n\nLegal Documents<\/h3>\n\n\n\n
Service Tax Registration<\/h3>\n\n\n\n
Company Turnover<\/h3>\n\n\n\n
Allocation of Shares<\/h3>\n\n\n\n
The Rate of Tax for Private\nCompanies<\/h3>\n\n\n\n
Investment of Shares<\/h3>\n\n\n\n
The Share Capital of the Company<\/h3>\n\n\n\n
Maintenance of the Legal Teams<\/h3>\n\n\n\n
Registration Renewal<\/h3>\n\n\n\n
Incorporating a Private Limited Company is Time and\nCost-Consuming<\/h3>\n\n\n\n
Conclusion<\/h2>\n\n\n\n