Have you been searching for the right Chartered accountant for the company registration? Read on this blog to know more about how to get a CA for company registration.
Chartered accountants do more to the growth of a business. Their role doesn’t limit to keeping accounts or raising red flags during discrepancies. A chartered accountant is well-aware of the technicalities related to account management. They analyze the previous accounts and take the business more profitably. Moreover, their role in the company registration process is across every step and is considered as most crucial.
The business in the form of a company is the common structure in India. The legal entity of every business and the registration processes comply with the companies act 2013. The role of the chartered accountant or a company secretary is crucial across the steps involved. The ROC office governs the registration processes. However, a Chartered accountant carries out the steps involved in verifying the various steps. The article talks about the crucial role of the Chartered accountant in every company registration.
Role of a Chartered Accountant
The role of a Chartered accountant in setting up a business or a company is crucial. It takes place at various steps of the procedures. You can’t replace a chartered account as they are experts in deriving strategies, taking business loans, account maintenance, managing or monitoring subsidies and so on.
The role of a Chartered accountant is in major aspects of setting up the business or a company:
- Drafting business plan: To begin a business, estimating financial predictions in line with market status. They also consider the fluctuations in the taxation policies of the government. Also, chartered accountants help boost the profit margins from the beginning of the business.
- Helps in trade marking: Trade marking the product involves technicality and authority. Business gets the trademark before registration also. Thus, using CA’s authority, you can carry out business operations without hindrance.
- Helps deal with Business loans and overdraft: When a chartered accountant backs your business, chances of getting a loan are higher. Inquiries involving revenue projections and expenses can be dealt with with the help of a Chartered accountant. Also, the chartered account can guide you in choosing the right type of loan and the interest rate.
- ROC filing: Filing the Company’s annual accounts and returns can be overwhelming. Irrespective of the company size, these procedures require legal references and insight into the “companies act”. Submitting these tedious procedures to the Chartered accountant lets you focus on other business operations.
- For security: Business deals can be acquired when backed by a Chartered accountant. As chartered accountants are bound to follow norms established by ICAI, your Company can easily gain trust. Also, look for a professional CA or a firm that has acquired indemnity insurance. By choosing a CA with indemnity insurance, you can be sure about the CA’s professionalism or the firm’s. ICAI analyzes the performance of CA in line with the standards. Therefore the quality and professionalism can’t be matched by accountants.
For company registration:
Chartered accountants or company secretaries approve the certificates required for Company registration processes. Therefore, a Chartered accountant’s role is crucial throughout the registration process. A Chartered accountant must approve every step of the registration process.
To begin the registration process, the Company has to start by defining its promoters. Any business would want funding from the promoters. In other words, these promoters possess the idea of forming the Company, and they are the prime reasons for the Company’s incorporation.
1. Approval of DIN (Director Identification Number):
The Company can’t appoint or re-appoint an individual as a director unless he has been allotted a director identification number or DIN from the government. Before the Company’s registration, the Company must submit all the documents to the Chartered Accountant. Then you need to give an affidavit to allow them to sign on your behalf. After that, the CA or the CS will digitally sign the document and give the DIN online immediately. Here obtaining the DIN without the approval of the Company Secretary or an online CA is impossible.
2. Name approval process
Company name availability can be checked online, but there are stringent rules and regulations to applying the company name online. Even if you find a name for your Company, the name should not be similar to other company names.
The chartered accountant will help you find the company name per the regulations listed in the companies act.
The name approval process takes about five business days to get approved by the ROC office. First, however, the approval of the chartered accountant or the company secretary of the selected name is required.
3. Drafting MOA and AOA before company registration
One of the essential processes in company registration is drafting MOA and AOA. MOA and AOA documents state what the Company will do after their registration. They also include the rules and regulations of the Company.
The role of the CA is to draft the MOA and AOA documents based on companies act.
The MOA document will state the details, including the Name of the Company, state of the registered office, objects necessary for the business operations or the objects for which the Company is getting registered, the liability of the members involved, and share capital.
4. Approval of INC7, INC 22 and DIR12:
After the MOA and AOA documents are approved, the documents such as INC7, INC22 and DIR12 are analyzed. Again the Chartered accountant and Company secretary have to approve these documents and verify the details mentioned in the forms.
The Company might want to change the associated registered office for easier communication and notices. The Company has to file the INC22 digital form to the board resolution. If the Company prefers to change the location outside the local limits, the Company is expected to file a special resolution that includes the form MGT.
Business Decisions that require CA:
There are three common types of business structure, which include:
- Individual trader
- Partnership
- Limited Company.
Individual trader: If you are an individual trader, you must look after the key business operations alongside the legislative formalities. These formalities can be overwhelming. You have to check the legal requirements of the business to run smoothly, register with tax authorities, pay national insurance, and estimate the profit margins.
Partnership: Drafting the agreement is a priority if you are partnered with multiple businesses. Sharing profit and loss with the business partners and examining the nature of a firm before entering into a partnership and significant others are required.
Limited Company: the regulations related to the tax rules, returns, filing the annual accounts and returns, regulations related to the publishing accounts and others require the assistance of a CA.
Conclusion
The role of a chartered accountant or the professional CA firm: https://egramswaraj.gov.in/financialProgressReport.do doesn’t limit to helping the companies across tax compliances and raising red flags at the time of discrepancy. A chartered accountant’s help gets a huge benefit for the business’s growth, and they are considered inevitable. If you need some assistance in getting a Chartered accountant for the company registration, make sure you are getting in touch with Vakilsearch.
