Top Mistakes to Avoid When Registering Your Startup Business in India

If you do not know the ins and outs of registering a company, you are likely to make mistakes during the startup registration process. In this article, we will point out the top mistakes to avoid when registering your startup business in India. This will help you to minimize your chances of making these mistakes.

Mistakes to be avoided during Startup Registration

The following mistakes need to be avoided while registering your startup business in India:

Not Choosing the Right Kind of Legal Entity

Many people make the mistake of choosing the wrong business structure for their company and regret it at a later stage. Before deciding on your company’s legal structure, do proper research about all the company types in India, along with their pros and cons. This is a crucial step, and if required, you should consult with a seasoned company registration consultant. The business structure you opt for must align with your company’s objectives and intended purposes. 

If you want limited liability, you must not go for a sole proprietorship. However, if you do not have the budget to start a big company and want to save up on the company registration cost, you can opt for a sole proprietorship for which no company registration is required.

Using Restricted Or Trademarked Name for Your Company

Avoid using any restricted names or trademarked words for your business name. You should never pick a business name that can be offensive to the public. Also, you should conduct trademark research before choosing your company name. 

The trademark research will ensure that the name that you’ve selected for your company doesn’t already exist. If it does, pick another name that hasn’t already been taken.

Providing Incorrect Information regarding Office Address

At the time of company registration for a startup business, you must provide accurate office address details. You can provide this information by submitting address-proof documents such as utility bills and rental agreements.

Not getting Intellectual Property Protection

When you open a startup, you open it with the idea of launching an innovative product. But if you do not get patent registration, you won’t have rights over your intellectual property, and others can copy your product. 

If other companies in the same industry offer the same products as you, your product will lose its uniqueness. Moreover, there’s a chance your competitor might claim ownership of your intellectual property. So, make sure to get patent registration before you start promoting your product. 

Not having the Necessary Documents

One of the most common mistakes made during the startup registration process is not having proper documentation. You must have a memorandum of association and articles of association that clearly define the objectives of your startup and internal rules. 

If these documents are not clear and cause confusion, your company’s functioning will be affected. Apart from these documents, you must have identity proof, PAN, and address proof of the director to be appointed.

Not Complying with Indian Laws and Regulations

You must ensure compliance with Indian laws and regulations throughout the startup registration process. Even after the registration is done, you must continue to showcase your compliance. 

Many startups make the terrible mistake of not complying with laws and regulations. As a result, they face penalties and legal consequences. To ensure that your startup thrives, you must be in the good books of the Government of India by ensuring compliance.

Not Seeking Professional Advice

Many budding entrepreneurs do not have a clear understanding of the process involved in registering a startup. Yet, they still do not seek professional advice. Professional guidance by a startup registration consultant can be really helpful as you can avoid costly errors and streamline operations for success in the long term. 

Conclusion

While registering your startup business in India, avoid the mistakes mentioned in this blog post. This will allow you to launch your startup business smoothly. If you need professional guidance in your startup registration journey, connect with Registrationwala. We’ll help you throughout the entire process of startup registration, from filing your documents with the RoC to assisting you with ensuring compliance with all the regulatory requirements and laws.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.