How Can One Register a Digital Marketing Agency?

Last Updated at: Dec 23, 2020
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Digital Marketing Agency
The MCA has recently started the “LLP Settlement Scheme, 2020” to provide relief to the LLPs troubled by the COVID-19 disruption. This scheme grants the LLPs a one-time waiver of penalties against the delayed filing of certain compliance requirements. Also, various timelines for filing statutory requirements have been extended so that these entities can make a ‘fresh start’.

 

Do you want to register a digital marketing agency? Good decision!

You can register it as the sole proprietorship firm, limited liability partnership (LLP), one person company (OPC), or private limited company. 

Sole Proprietorship Registration 

Sole- proprietorship firm is a single person firm. A resident of India can start his digital marketing business as a sole proprietorship firm. Moreover, it is the most common and easiest platform for small business entities. Additionally, one needs not to spend much on the registration and compliance part. Further, the firm can be started with any amount of capital. 

Register sole proprietorship    

Documents Required

  • Required Business Name 
  • PAN Card of the proprietor
  • Moreover, utility bill like electricity or water (Business Place)
  • Aadhaar Card/Voter ID card 
  • Further, photographs of the proprietor
  • Current Account Bank Passbook on the Name of Business

Disadvantages

  • One can not raise much capital.
  • Moreover, the proprietor is fully liable for all business debts and his finances will be impacted.
  • Additionally, self-employment taxes are applicable.

Limited Liability Partnership (LLP) Registration

LLP offers the advantages of limited liability like a company and the flexibility of a partnership. Additionally, an LLP has its own separate legal identity and can enter into contracts with its name. Moreover, the liabilities of partners are limited in the ratio of their agreed contribution in the LLP. Further, partners enjoy a shield here from joint liability. Moreover, they are not liable to pay for unauthorized acts of other partners. Therefore, no minimum capital is required.

Additionally, the limit of partners here is 2-200 for the number of partners. Following are the mandatory compliance for an LLP: 

  • Annual Returns Filing.
  • Financial Statements Filing
  • Income Tax Returns Filing

Documents Required

  • Digital Signature (DSC)
  • Name Approval 
  • LLP Incorporation 
  • LLP Agreement 
  • PAN & TAN
  • Documents of Partners- PAN, ID proof, Address proof, Residence proof, photographs

Advantages

  • It is well operated by following the rules of the agreement. 
  • Further, it offers flexibility and does not impose legal and procedural requirements.
  • It enables professional mechanisms. 
  • Additionally, lesser compliance than other business structures.

For most people, it may be confusing to choose the right type of business structure for their incorporation. For the proper guidance to incorporate a Digital Marketing Agency in Mumbai, you can contact the vakilsearch team. Moreover, Vakilsearch is one of India’s largest professional platforms with an experienced team of Lawyers, Chartered accountants, Company Secretaries. The proficient team offers cost-effective legal services. 

One Person Company (OPC) Registration

OPC business structure was introduced in 2013 in India. It is also a one-person firm but different from a proprietorship firm. However, it is a kind of private company. OPC entails legal recognition, unlike proprietorship. Likewise, it limits an entrepreneur’s liabilities and also offers certain tax benefits, unlike proprietorship. Therefore, the minimum number of directors is one. 

An individual can incorporate OPC through Simplified Proforma for Incorporating Company electronically (SPICe) service of the Ministry of Corporate Affairs (MCA). 

An individual needs to apply for Name Reservation, Digital Signature Certificate, Director Identification Number, Incorporation letter, PAN, and TAN. 

Documents required

  • Digital Signature Certificate (DSC) 
  • Name Approval certificate
  • Memorandum of Association (MoA) 
  • Articles of Association (AOA) 
  • Company Incorporation Certificate INC 2
  • Declaration for all compliances

Advantages

  • Limited liability for directors
  • Legal Recognition 
  • Easy Loans
  • Easy to manage

Private Limited Company Registration 

A Private Limited Company (PLC) is popular for startups with higher growth aspirations. It is to be registered under the Companies Act 2013 for pre-defined objects. Similarly, it limits the maximum number of members to two hundred. Shareholders are the investors in the company. Further, they invest capital to run the business. The ownership is defined by share capital. It has a separate legal identity from its members. Further, the company needs to file annual returns reports and income tax returns statements with the company registrar.

Documents Required

  • Digital Signature Certificate (DSC)
  • Name Approval (INC 1)
  • Further, Memorandum of Association (MoA) 
  • Articles of Association (AOA) 
  • Company Incorporation 
  • PAN & TAN

Wrapping Up

The business structure will impact income tax returns. Therefore, it is necessary to select a business structure carefully. Additionally, every business structure has different compliances. One needs to look at every legal aspect to start a business.

It is advisable to consult a legal advisor like Vakilsearch before starting the process of registering your Digital Marketing Agency. They are providing 300+ services to their 4,00,000+ clients. 

Click here: how to register a company

Avani Mishra is a graduate in law from the National Law Institute University, Bhopal. She qualified the Company Secretary course with an All India Rank 1 and is a recipient of the President’s Gold Medal for her academic distinctions. She also holds a B.Com degree with a specialization in Corporate Affairs and Administration.