There are various myths associated with company registration that stress out entrepreneurs seeking to register their company. Legal formalities scare them and they struggle to register their business. Before registering a company, owners need to be aware of some myths. This article explains the myths of one person company registration that people believe when it comes to the legal process.
Investment of Shares
The claim that natural persons can only be shareholders or owners of a company is completely incorrect. Incorporated companies can invest in other corporations because they are “artificial persons”.
The Share Capital of the Company
It is not true that the shares of the company must be deposited in a bank upon incorporation. There is no doubt that entrepreneurs will be able to find the best flexibility in a Private Limited company. From the moment the business is incorporated, all changes relating to capital, the business, the official address and many others can be made.
Maintenance of the Legal Teams
In a company, maintaining a legal department is thought to be extremely expensive. There is a minimal amount of expense associated with accounting and tax filings. The services of chartered accountants and company secretaries can be obtained at an affordable price from skilled professionals in the accounting field.
Registration Renewal
Do you have to renew the registration of a company whose registration is entirely false every year? Basically, the company is registered once, and that’s it. The company will remain functional until dissolved. Do not believe fraudsters who want extra money, as they are not trustworthy. All that needs to be done is to file the yearly returns with the income tax department and the ROC (Registrar of Companies).
Incorporating a Private Limited Company is Time and Cost-Consuming
It is no longer necessary to meet that requirement, so company incorporation can be done more cost-efficiently as well. Furthermore, you can easily, conveniently, and affordably incorporate your Private Limited Company with our services.
Conclusion
The choice of a business structure has a profound impact on its future. It is important that you consider all aspects of your business before making this decision. Private Limited Companies have their own pros and cons like any other business structure. Stay away from myths surrounding the software and pick one that will meet your business requirements.
Read more,
- Discussion of existing myths regarding company registration
- Hong Kong company registration: everything you need to know
- Company Registration Types
