What is Business Registration Proof & Different Types

Do you have a new business and want to enhance its credibility in India? You can get authentic business registration proof as it is the most fundamental component of your business. Your company needs to be credible in the eyes of its stakeholders, customers, and suppliers. Or else your business will not be allowed to use government services, apply for credit cards or loans, or even sign contracts that are legally enforceable if it is not properly registered. Does it sound very overwhelming? Do not worry, this blog will try to give you a clear idea of the steps to get your business registration proof smoothly.

Why do you need business registration proof?

There are many advantages of a business registration proof. It helps to establish legal compliance thus building credibility and trust in your company. If your business registers with the relevant government authorities, a unique identification number or registration certificate is assigned as legal proof of your business registration. You can use this registration number to track your business’s financial transactions, tax obligations, and legal issues.

Getting access to government services is a very significant reason for availing a business registration proof. A company's prospects for different government services and programs such as financial assistance, subsidies, and tax benefits are enhanced when you have proof of a business registration. Often governments provide support to registered businesses encouraging economic growth and development thereby building a unique brand identity.

Building credibility with clients and suppliers is a key benefit you gain from holding legitimate documentation of your business registration. The professionalism of your company grips the attention of your stakeholders to the company’s commitment to operating lawfully and following all norms of applicable legislation. Suppliers and customers get hooked to the credibility and trust and this strengthens relationships with its stakeholders and subsequently results in increased sales and profitability.

What are the different types of business registration proofs in India?

There are different types of business registration proofs in India depending on a company’s nature and operations. Some registration proof types have been discussed below:

Tax Registrations:

• GST Registration/Provisional Certificate: This registration is very essential for businesses with an annual turnover surpassing a specific amount.
• Sales Tax, Service Tax, or Professional Tax Certificates: These certificates are issued by state government authorities for businesses and are legally responsible for paying taxes like sales tax, service tax, or professional tax. They confirm the company's registration with the suitable tax department.

Licences and Certificates:

• Shop & Establishment Act Certificate/License: It isissued by the municipal authorities and proves registration under the Shop and Establishment Act which regulates working conditions in various establishments like shops, commercial institutions, and other similar businesses.
• IEC (Import Export Certificate): A 10-digit code, IEC is required by businesses involved in import or export activities. This certificate is confirmed as proof of registration with the Director-General of Foreign Trade.
• Registration Certificate under Labour Department: This certificate confirms a company's registration with the state's labour department, this is proof of compliance with labour laws.
• Agricultural Board Trade Licence: This licence is necessary for businesses dealing with agricultural goods and serves as proof of registration with the Agricultural Board.
• Food and Drug Control Certificate, Drugs Licence & Registration Certificate issued by Medical Council of India: These certifications prove that the business is following food and drug regulations for businesses in the relevant industry.
• Factory Licence: A Factory Licence is mandatory for companies in the manufacturing sector. It is a proof of registration of the Factory Inspectorate.
• Central/State Government Contractor Licence: These licences are required for companies to bid on government contracts. They prove registration with the relevant authorities.
• SEBI Registration Certificate: This certificate is mandatory for stockbrokers and investment advisors, signifying registration with the Securities and Exchange Board of India (SEBI).
• Udyam Certificate: This certificate is necessary to get loans from banks and benefits provided under various schemes to MSMEs. The Udyam registration proves that an enterprise is covered under the MSME category.
• FSSAI License: A food licence or FSSAI licence is granted to all manufacturers, traders, and restaurants carrying out any food business who are involved in manufacturing or processing. When you apply for FSSAI registration, a unique 14-digit licence number is issued which must be quoted on all food packages.
• Municipal Corporation/Local Government Body Registration Certificate: This certificate is specific to a region, but is as proof of registration with the relevant local government body. (e.g., Maharashtra Gumasta Certificate)

Financial Documents:

• Utility Bills (electricity, water telephone, internet, piped gas) under the business name: These bills demonstrate that the company has filed its income tax returns with the relevant government agency and has a specific address.
• Complete Income Tax Return in the sole proprietor’s name where the company’s income is reflected and validated by the Income Tax authorities: Thisdocument proves that the company has filed its income tax return with the appropriate government agency.

The increasing business landscape in India emphasises the necessity for burgeoning business registration proof. With a growing economy expanding and new ventures emerging across various sectors, a legitimate and verifiable business registration certificate becomes a principal priority.

The proof of business registration number is an important record that proves a company's legality, loyalty to appropriate rules and regulations, and eligibility for government services and initiatives. It guarantees the operations of a business by establishing credibility with stakeholders. If the company wants government support programs, it must acquire the required registration documents and keep them updated.

FAQs

Q1. Define MOA or memorandum of association.

Ans. An organisation's contract is contained within its Memorandum of Association (MOA). A memorandum is registered to establish a corporation.

Q2. Define Articles of Association (AOA).

Ans. A company's regulations, known as the Articles of Association (AOA), is an internal document that specifies the regulations for a company's operations and defines the company's purpose.

Q3. Define Authorised Capital.

Ans. This refers to a company's maximum sum of capital at which it can issue shares and take orders from investors. It is also known as a registered capital.

Q4. What do Corporate Identification Numbers (CINs) mean?

Ans. CIN is proof of registration in India which is assigned to the company by the Ministry of Corporate Affairs, Government of India.