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5 Common Mistakes to Avoid During Registering A Company In India

Company incorporation is final though the process, because then only you decide to register your company with all the legal formalities. Thats the only way to build your brand name, reputation, and credibility. Being legal in India makes lots of difference in public eyes. And most important you are a brand that stands out different in the country. Both of these steps must be strictly followed when registering a company in India and in addition, must be properly followed. There is no escaping the gap because it can cause great problems. Here are some common mistakes that should be avoided during company registration in india.

Read More:- Documents Required for Company Registration in India

Selecting an inappropriate legal framework for the company registration online

There are various business structures for company incorporation in India. You can start your company as a Private Limited Company, OPC Company, LLP Company, Partnership Firm, or Sole Proprietorship Firm. These business structures have their own terms and conditions along with various benefits. You must make a complete list of your needs in the company registration match to all the structure and choose the suitable one for you.

Each structure of an organization has its own set of pros and cons. The choice you make in terms of the form of entity will impose constraints on the number of individuals who can enter as owners. And that is why before taking the plunge, you should familiarize yourself with the outstanding characteristics of each entity structure. Take the complete guidance of chartered accountants or any CA/ CS firm.

Read More:-  Types of Company Registration in India for startups

Incorrect Information and Description of the company structure you choose

When you are submitting documents regarding your company name and its descriptions. It’s very important to give correct and valuable information. For example, if your business is related to food products you must give a complete insight description, not giving information about all the products just the category.

This can sound so basic, but without a clear-cut understanding of how a shareholder can support the company, what are the terms laid out for different types of shares that the company may sell, what are the voting rights of each partner-owner, a summary of the company can not be listed. Therefore to prevent any potential disputes, it is important to have a good amount of information on shares and other aspects. As it will cost more, none of the products should be overlooked. 

In deciding on the number of owners, directors, etc., it is often best to take time to seek professional support.

Wrong Company forms and incorrect names in the Company Registration Process 

In an online company registration, the correct forms fill up is very much important. Choosing the right company name is another important factor. The correct names should be picked with online searches online ca service provider site. The names should have the suffix of the type of company structure you have picked. The Name approval is done by the form of RUN and SPICe+. Dont’ get confuse a spice plus is a new form. It has everything in one form you don’t to fill diffrent types of forms.

Any company structure is noticed by its name and trademark or logo first. Therefore business name can not be gone and one must pay attention while filling out the application form for the name. During the definitive assessment screen, the application has to cross-check all forms of documents before submission. Do take help of the online ca services providers.

Read More:- Benefits of Company Registration

Always ignore to add the Business Names Suffix 

Before submitting the company names for the approval suffix is added to the name is a must to check. You must add a suffix to what form of business you are registering when you choose a name to get it’s reserved or apply for name approval. This is so compulsory for all people who want to register for a business. Otherwise, at some point, their application could be denied. 

The following are 

suffixes for company registration:

1) Private Limited Company– Pvt. Ltd

  2) Limited Liability Partnership– LLP 

 3) Nidhi company– NIDHI LTD  

4) One-person Company- (OPC) PRIVATE LIMITED

  These are the major guidelines of the MCA that the suffixes must add in the company’s name at the end. You have to combine on while applying for online company registration in India. If you want simple processing, take help and assistance from experts.

Read More:- Types of Companies in India For Business Registration

Absence of founders agreement, shareholder’s agreements, LLP agreement, and partnership agreement

When you select a company structure always look for the contract and agreements with your partners to avoid future conflicts and issues. Sometimes as entrepreneurs venture, they are basically looking for the expected sales, business growth, investors, infrastructure improvement, etc. There are great chances that they can leap into crucial documents and agreements and one such thing is the contract or agreement of a shareholder. Again, this will soundless, but in the long run, if not accomplished, it has a huge effect. A shareholder agreement must include the terms for what is to be done in the case of the death or removal of the shareholder(s), and so on. Besides, the agreements would never apply to future disagreements and disputes. Therefore the transactions should be made in business incorporation. It’s very important o take care of all the legal documents for partnership registration. You must file a partnership deed before online company registration in india.

Read More:- How to get FSSAI License for Home based food business?

Confusion About Important Taxes, licenses, and additional registrations

You must know that for company registration in india you must take care of other licenses as well. For example, if you have a company related to food products and you want to import and export that product. You must have an FSSAI license and IEC code. Multiple authorities at the central and state level shape policies and control business activities. The authorities require companies to be licensed under laws such as the Law on Shops and Establishments, the Income Tax, GST Registration, etc. Often entrepreneurs are ignorant about the applicability of particular registration and end up paying heavy fines and penalties for non-compliance.

Brief to various government registrations, like:

Stop making these registration-related mistakes and confidently step on your Startup journey. If you have a question or need expert advice, please take help from CA services for company registration online.

False data in the company registration form 

In online company registration, you must check all the information before submitting documents online. Many supporting documents are submitted when applying, and the data referred to in the documents must be correct. Invalid and inaccurate data leaves room for rejection of the application for company registration. And it’s not easy to again apply for company registration. It’s a waste of time and money, it’s better to take the help of experts like CA or Cs.

Ignore taking the registration of Intellectual Property like trademark registration, copyright or patent 

What if your logo, the business name is already stolen or may have a chance to get stolen?

Must take Intellectual property registration to make your brand name safe forever. It is a difficult fact, but others may use the product of your intelligence and cause the loss of business opportunities and financial embarrassment. 

Many intangible assets are often procured and generated during the lifetime of a company other than tangible assets such as construction, machinery, etc. It can be your domain name, the unique design of the package, form, packaging, business logo, a unique combination of ingredients that separates your product from any other product on the market. Together these principles, trademarks, designs, etc are considered intellectual property. 

Intellectual property is a legal term referring to the ownership of an artistic concept produced. It is your company’s intangible asset that you have generated solely for your goods or services. Companies can store their IP and obtain legal protection by registering them with patents, copyrights, and trademarks under the relevant protections available.



In company incorporation and online company registration in india you must take care of all the legal formalities especially when you are registering online at the MCA online portal. Therefore it’s highly suggested to take help of all the car services near you. You can build your company with all the major follow-ups and your company will always be recognized as the best brand name with all the licensing and registration proper done with company formation.

Frequently Asked Question

How can I register my company name for free in India?

All company registration online can be done with the form Reserve Unique Name (RUN).

Where can I register my company?

Want to register in India for a new company, you must send an application to the Ministry of Corporate Affairs (MCA). The application is also rendered remotely online at the MCA portal. 

How do I verify whether or not my business is registered? 

You should search the MCA website for the status of the company registration. You need to go to the MCA Portal tab to check the status of your company and pick ‘Display Company/LLP Master Information’ from the drop-down list. Then enter the CIN of the business and see the status.

How much time is taken for online company registration?

If you have all the documentation in series, it will take no longer than 15 days. But, this is dependent on the registrar of the company approval time.

Which is a better company structure for registration online?

 Private Limited Company has considered the best in registration because processing and documentation are simple. Besides, it depends on your requirements also.

Ritesh Mishra

Hi, My name is Ritesh Mishra, a Practicing Advocate having several year experience in Business Consultancy, Secretarial Law, Intellectual Properly Law, Taxation, Business Modeling and other allied matters. I have been serving Small and Big Industries since several years. I have also been serving industry in various kind of licensing and liasoning works across India.

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