How to do GST registration for a company?
What is Company and what are its benefits?
A company in India is a voluntary association of individuals formed for the purpose of carrying out business activities, which can be for-profit or non-profit. It is a distinct legal entity separate from its members (shareholders) and is recognized by law. This means that the company itself can own property, incur liabilities, and enter into contracts independently of its shareholders. GST registration for company is also essential.
In India, a company is a legal entity formed by a group of individuals to engage in and operate a business enterprise. Companies are governed by the Companies Act, 2013, which sets out the legal framework for the formation, management, and dissolution of companies. Here given some benefits of company.
Benefits of company registration
1. Legal Recognition and Credibility
Legal Entity Status: A company with company registration in Chennai provides it with a separate legal identity. This means that the company itself can own property, incur debt, and be sued independently of its owners.
Credibility with Stakeholders: A company gains trust and credibility with customers, suppliers, investors, and financial institutions. It signifies a commitment to regulatory compliance and stability.
2. Limited Liability Protection
Protection for Owners: The liability of the shareholders is limited to the amount they invested in the company. Personal assets of shareholders are protected from business liabilities, except in cases of fraud or malpractice.
3. Access to Funding
Investment Opportunities: Companies can raise capital through equity funding by issuing shares. This makes it easier to attract investors, including venture capitalists and private equity funds.
Bank Loans and Credit: Financial institutions are more likely to offer loans and credit facilities to registered companies, given their structured and transparent nature.
4. Perpetual Succession
Continuity: A company which can get Private limited company registration in Bangalore continues to exist even if the ownership or management changes due to death, retirement, or transfer of shares. This ensures business continuity and long-term planning.
5. Brand Protection
Trademark Registration: A registered company can easily register its brand name and logo as a trademark, providing protection against misuse or infringement by others.
Name Reservation: Upon registration, the company name is protected and cannot be used by any other entity, ensuring brand exclusivity.
6. Tax Benefits and Incentives
Lower Corporate Tax Rates: Registered companies often benefit from lower corporate tax rates compared to individual tax rates for sole proprietorships and partnerships.
Deductions and Exemptions: Companies can avail various tax deductions and exemptions under the Income Tax Act, which can significantly reduce their tax burden.
R&D Benefits: Companies engaged in research and development can claim additional deductions and incentives, fostering innovation and growth.
7. Ease of Ownership Transfer
Transferability of Shares: Shares of a registered company can be easily transferred, facilitating the sale of ownership stakes without disrupting business operations.
Attracting Talent: Offering equity or stock options is a powerful tool to attract and retain skilled employees, aligning their interests with the company’s growth.
8. Enhanced Business Opportunities
Government Contracts: Many government tenders and contracts are only open to registered companies, providing significant business opportunities.
International Expansion: A registered company with a recognized legal structure can more easily establish business relationships and operations internationally.
9. Structured Management and Governance
Defined Roles and Responsibilities: Company that has Private limited company registration in Coimbatore ensures a clear structure with defined roles for directors, shareholders, and officers, leading to efficient decision-making and management.
Compliance and Accountability: Regular audits and compliance with statutory requirements promote transparency and accountability within the company.
10. Limited Compliance Burden for Small Companies
Simplified Procedures: Small companies benefit from simplified regulatory procedures and compliance requirements, making it easier to operate and manage.
Start-up Ecosystem Support: Various government initiatives, such as Start-up India, offer benefits like tax exemptions, easier compliance, and access to funding for registered start-ups.
How to do GST registration for a company?
Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption in many countries, including India. It is essential for companies to register for GST to comply with tax regulations and to avail input tax credit on their purchases. This guide will walk you through the steps involved in GST registration for a company, the documents required, and important considerations to keep in mind.
Why Register for GST?
Legal Requirement: Companies with an annual turnover exceeding the threshold limit specified by the government must register for GST.
Input Tax Credit: Registered companies can claim input tax credit on their purchases, which can reduce their overall tax liability.
Business Credibility: GST which can get GST registration in Bangalore enhances the credibility of your business as it shows compliance with tax laws.
Avoid Penalties: Non-registration can lead to hefty penalties and legal consequences.
Who Should Register for GST?
Mandatory Registration: Businesses with an annual turnover above the threshold limit (₹20 lakhs for services and ₹40 lakhs for goods, subject to state-specific variations).
Voluntary Registration: Businesses below the threshold limit can also register voluntarily to avail input tax credit and other benefits.
Special Cases: Certain businesses, regardless of turnover, such as those involved in inter-state supply of goods and services, e-commerce operators, and casual taxable persons, must register for GST.
Steps to get GST registration
Step 1: Prepare the Required Documents
To register for GST, ensure you have the following documents ready: These documents are also required if you require GST registration in Coimbatore.
PAN Card of the Company: Permanent Account Number (PAN) is mandatory for GST registration.
Proof of Business Registration: Incorporation certificate, partnership deed, or any other proof of business constitution.
Identity and Address Proof of Promoters/Directors: Aadhaar card, PAN card, passport, or voter ID.
Photographs of Promoters/Directors: Recent passport-size photographs.
Business Address Proof: Electricity bill, rent agreement, or property tax receipt.
Bank Account Details: Cancelled cheque, bank statement, or passbook.
Digital Signature Certificate (DSC): For companies and LLPs, DSC with digital Signature Certificate in Coimbatore is necessary for the authorized signatory.
Step 2: Visit the GST Portal
Go to the official GST portal (https://www.gst.gov.in/) and click on the ‘Services’ tab. Under the ‘Registration’ option, select ‘New Registration’.
Step 3: Fill in the Registration Form Part A
In Part A of the registration form:
Select Taxpayer: Choose ‘Taxpayer’ from the dropdown menu.
Enter Details: Provide details such as legal name of the business, PAN, email address, and mobile number.
Verification: Enter the OTPs sent to your email and mobile number for verification.
Step 4: Receive the Temporary Reference Number (TRN)
After verification, you will receive a Temporary Reference Number (TRN) on your email and mobile. Use this TRN to fill in Part B of the registration form.
Step 5: Fill in the Registration Form Part B
Using the TRN, log in to the GST portal and complete Part B of the registration form:
Business Details: Enter details like trade name, business constitution, and district.
Promoter/Director Information: Provide personal details of promoters/directors along with their photographs.
Authorized Signatory: Details of the person authorized to sign the GST application on behalf of the company.
Principal Place of Business: Address of the main business location along with proof of address.
Additional Places of Business: Details of any additional business locations.
Goods and Services: Specify the HSN/SAC codes for the goods and services your business deals in.
State-Specific Information: If applicable, provide any state-specific information required.
Bank Account Details: Enter the details of the bank account used for business transactions.
Step 6: Upload Documents
Upload the necessary documents as specified on the portal, ensuring they are clear and legible.
Step 7: Verification with Digital Signature
For companies and LLPs, the application must be verified with a Digital Signature Certificate (DSC). For other entities, an e-signature or Electronic Verification Code (EVC) can be used.
Step 8: Submit the Application
After completing all the details and verifying with DSC or EVC, submit the application for GST registration in Coimbatore. You will receive an Application Reference Number (ARN) via email and SMS.
Step 9: Track the Status of Application
Use the ARN to monitor the status of your application on the GST portal. The GST officer may verify the application and documents submitted.
Step 10: GSTIN Issuance
Once the application has the approval, you will receive a GST Identification Number (GSTIN) and a GST registration certificate via email. After that you can download the certificate from the GST portal.
Post-Registration Compliance
Display GSTIN: Display your GSTIN on your business premises and on all your invoices.
Maintain Records: Keep accurate records of all business transactions, invoices, and GST returns.
File GST Returns: Regularly file GST returns (GSTR-1, GSTR-3B, and others as applicable) to avoid penalties and ensure compliance.
Pay GST Dues: Timely payment of GST dues to avoid interest and penalties.
Conclusion
GST which can get GST registration in Bangalore is a crucial process for companies to ensure legal compliance, avail input tax credit, and enhance business credibility. By following the steps outlined in this guide, you can smoothly navigate through the GST registration process. Ensure to maintain accurate records and stay updated with GST filings to benefit fully from the GST regime. If you face any difficulties during the registration process, consider consulting with a tax professional or GST consultant (Solubilis) for expert assistance.
