Whether you are starting a business or already running one, you have probably heard about the importance of having a proof of business. While a seemingly complicated process, obtaining the necessary business registration proof at the earliest can help ease some of the stress that comes with running a business. In this article, we will walk through the different types of business proof certificates that can set your business up for success.
What is business registration proof?
A business registration proof is essentially an official ID for your business. It is a document or certificate that shows that your business is officially registered with the government. This proof is your gateway to running a legitimate business that is trusted by customers, partners, and even lenders.
Importance of business proof documents.
These documents provide the foundation for building a legitimate, scalable business in the following ways.
- Legal recognition: Having relevant documents indicates the legitimacy of the business, and its recognition under the law.
- Building trust: It assures customers, investors, and partners that the business is in compliance with the law.
- Access to opportunities: Having a legitimate, registered business opens the doors to greater investments, financing opportunities, and partnerships.
- Staying compliant: Compliance in itself helps the business to avoid penalties and discontinuity.
Types of business proof certificates
The type of documentation required depends on the nature of the business. This includes, for example, its legal character and its field of operation. A few common types of documents are discussed below.
1. Certificate of Incorporation
Businesses registered as a company must obtain a Certificate of Incorporation. This document can be applied for online, through the Ministry of Corporate Affairs (MCA), and includes details like your company’s name, registration number, and incorporation date.
2. Trade License
A trade license is essential for a business that is involved in trade, commerce, or industrial activities – including shops, restaurants, factories, and service providers. It is issued by the local municipal authority, and can be applied for online in most parts of the country.
3. GST Registration Certificate
Under the GST regime, businesses are eligible for tax refunds and credits under certain circumstances. To apply for the same, the business is required to have a GST registration certificate and a corresponding GSTIN number.
4. Partnership Deed (for Partnerships)
A partnership deed is a written agreement outlining each of the partners’ roles, responsibilities, and profit-sharing terms. For businesses run by two or more partners, the registration of this document legalises this structure, and serves as a proof of legality.
5.Udyam Registration (for MSMEs)
Micro, Small, or Medium Enterprises (MSMEs) are often eligible for several government schemes, subsidies, and credit facilities. Obtaining Udyam Registration online is a crucial step for businesses to access these benefits.
6. Shop and Establishment Act License
This licence is issued by the Labour Department of the State Government. To acquire it, you must submit an online application. The Shop and Establishment license governs compliance with working hours, employee rights, and other business practices. Retail shops, offices, and establishments must have this document as proof of compliance.
7. FSSAI License (for Food Businesses)
An FSSAI license demonstrates compliance with food safety standards. It is essential for restaurants, food manufacturers, and catering businesses.
8. Import Export Code (IEC)
An IEC is essential for export and import businesses. It is issued by the Directorate General of Foreign Trade (DGFT) upon an online application and physical verification. This licence simplifies cross-border trade, and provides access to government incentives.
9. NGO Registration Certificates
Charitable organisations and social enterprises operating as Non-Governmental Organizations (NGOs) must register under specific acts like the Societies Registration Act, the Trusts Act, or Section 8 of the Companies Act. This enables access to relevant tax exemptions.
10. Financial documents
A business can prove its location and state of operation by compiling and retaining proof of rent, utilities and salary payments. Filing Income Tax Returns (ITRs) also helps demonstrate compliance with relevant tax obligations.
How to pick the right registration proof?
Several factors determine the kind of registration proof required by the business.
- Business Type: For example, food businesses need an FSSAI license, while exporters require an IEC.
- Business Scale: Certain documents, like GST registration, may be required only for businesses operating above a certain scale.
- Location: Additional trade or shop licenses may be necessary for compliance with local or regional laws.
Final thoughts
Getting your business registration proof is not just about ticking a box; it is about setting the stage for long-term success. Having the appropriate documentation in place can provide access to better opportunities for growth, which includes secure financing. Whether your business is small or large, Tata Capital offers business loans for all your needs. With business loan interest rates starting at 12% per annum, we help turn your business goals into reality.
FAQs
Proving a business means providing official documentation or evidence, such as registration certificates, that confirm the business’s legitimacy, ownership, and operations in compliance with legal or regulatory requirements.
Proof points in business are measurable indicators, such as financial performance, customer testimonials, or certifications, that demonstrate credibility, value, and success to stakeholders like investors, customers, or partners.
To obtain proof of business registration, apply with the relevant authority (e.g., Ministry of Corporate Affairs, Labour Department) by submitting required documents like ID proofs, business details, and application fees online.
Proof of business registration for GST is the GST registration certificate and GSTIN number, issued by tax authorities, confirming that a business is authorised to collect GST and complies with tax regulations.
Business registration usually involves a fee, which varies depending on the type of business, registration authority, and location. Some small business registrations may offer reduced or waived fees.
13 February 2025
4 mins read
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