Any business entity that wants to function legally must have a business registration proof. Apart from making various government schemes and programs accessible, this simple document also builds the company's credibility in the eyes of its clients, suppliers, and stakeholders. A business cannot take advantage of government facilities, sign legal contracts, or apply for working capital finance or other Business Loans without registration.
Therefore, obtaining genuine proof of business registration is imperative to prove a company's legal functioning and compliance. The following sections will explain what this document is, why it is important, and what its different types are.
What is Business Registration Proof?
A business registration proof is an official document the government authorities issue to confirm a company's existence and legal compliance with the law. A genuine proof of business allows a company to operate and conduct business activities.
Almost all types of businesses can apply for this document. For instance, a Corporation can obtain a Certificate of Incorporation; a Limited Liability Company may apply for a Certificate for Formation, Certificate of Organisation, or Articles of Organisation; and a Limited Partnership may file a Certificate of Partnership. It contains various details about the business, including its official name, DBA, address, shares information, management, etc.
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Why is Business Registration Proof Important?
Proof of business registration helps establish a business's legal identity. Registering with the relevant authorities gives a unique registration certificate or identification number to assign with legal proof of existence. This proof is useful in tracking the registered company's tax liabilities, legal compliance, and financial transactions.
Moreover, the business registration proof enables a company to avail itself of various government programs and services, such as tax benefits, financial assistance, and subsidies. The Indian government largely supports registered companies to encourage their growth and development. Therefore, entrepreneurs who can show proof of business have higher chances of being qualified for various services and programs.
Another benefit of having a business registration proof is that it helps establish a company's credibility with suppliers and customers. Proper registration signals legal operation and compliance with all applicable laws and regulations. Eventually, it helps build trust and confidence, leading to increased customer loyalty, supplier partnerships, profitability, and revenue.
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What are the different types of Business Registration Proof?
A company can obtain different types of business registration according to its operations and nature. These include the following:
1. GST Registration: GST registration is mandatory for companies having an annual turnover exceeding a specified amount. Post-registration, the company receives a certificate proving business registration with India's GST authorities.
2. Certificate Issued by the Sales Tax, Service Tax, or Professional Tax Authorities: The state government authorities issue these certificates to companies liable to pay sales, service, or professional taxes. The certificate proves that the company has registered with the relevant tax authorities.
3. License or Certificate Issued under the Shop and Establishment Act: The government regulates the working conditions in shops and commercial establishments under the Shop and Establishment Act. The municipal authorities issue a license or certificate under this act to prove business registration and compliance.
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4. IEC (Import Export Certificate): Import Export Certificate has a 10-digit code that a business engaging in import or export activities requires. The certificate serves as proof of business registration with the DG (Director-General) of Foreign Trade.
5. Certificate of Registration under the Labour Department: Any business registered with the Labour Department of its state receives a registration certificate. It serves as proof that the business complies with the state’s labour laws.
6. Sales and Income Tax Returns: These documents prove that the business files its sales and income tax returns with the concerned authorities.
7. Trade License by the Agricultural Board: Businesses dealing with agricultural products require a trade license from the Agricultural Board. The license proves registration with the concerned authorities.
8. Food and Drugs Control Certificate/ Registration Certificate/ Drugs License by the Medical Council of India: These certificates prove business compliance with the relevant regulations associated with food and drugs.
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9. Factory License: Every business engaged in manufacturing must obtain a factory license to perform manufacturing activities. The license proves registration with the Factory Inspectorate.
10. Contractor License by the Central or State Government: Businesses require a contractor license to qualify for government contract bidding. Relevant authorities use this license as proof of registration.
11. SEBI Registration Certificate: Investment advisors and stockbrokers require this certificate to operate as a business. It serves as a business registration proof with the SEBI (Securities and Exchange Board of India).
12. Registration Certificate issued by Mahanagar Palika/ Gram Panchayat/ Nagar Panchayat/ Municipal Corporation: These registration certificates prove compliance with the local municipal authorities.
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13. Gumastha Certificate of Maharashtra: Businesses require this certificate to conduct operations in the state of Maharashtra. It proves registration with the local municipal authorities.
14. Utility Bills in the Company’s Name: Electricity, water, telephone, internet, and piped gas bills in the company’s name serve as proof of business operation at a specific address.
15. Complete ITR: Complete the Income Tax Return (ITR) in the company’s name reflecting the firm's income, which proves that the business files ITR with the relevant authorities. It should be duly acknowledged and authenticated by the income tax authorities.
16. FSSAI License: Businesses dealing in food products need a licence to prove compliance with the Food Safety and Standards Authority of India (FSSAI).
17. Udyam Certificate: In 2020, the Ministry of MSMEs introduced a new registration mechanism for MSME classification. The Udyam registration certificate lets businesses register on the MSME portal.
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Conclusion
A valid business registration proof validates a company's compliance, qualification, and legal status. Ensuring smooth operations involves securing and updating necessary paperwork, building trust with clients and stakeholders, and exploring available government support programs. For businesses seeking SME loans to propel growth and expansion, Hero FinCorp provides up to Rs 40 Lakh without any usage restrictions.
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Frequently Asked Questions
1. What is the proof of business registration?
Proof of business registration is a document that proves a company’s registration with the relevant authorities to conduct operations in the industry.
2. What are the business proof documents?
ITR, udyam certificate, trade license, GST certificate, etc., are a few business proof documents.
3. What is proof of business registration for GST?
Upon GST registration, a business receives a GST certificate as proof of business registration.
4. Which documents are required for the registration of a company?
Bank account statement, latest utility bills, driving license, ITR, PAN ID, etc., are some documents required for company registration.
