What is Business Registration Number in India?

You’ve got a great startup idea and a perfect business plan; everything is flawless. But simply creating an inspiring plan, budget, and goals won’t work for starting a business. Yes, there is a lot more behind the scenes. This blog explains all the steps to legally launch your business from scratch. Whether you’re venturing into the world of sole proprietorships, partnerships, limited liability partnerships (LLPs), private limited companies, or public limited companies, the process of registering your business and acquiring a Business Registration Number (BRN) is a pivotal undertaking that establishes your business’s identity and adherence to legal regulations

In startup terms, turning your business into a brand is called business success. In the rush for victory, businesses sometimes fail to spotlight the legal documents to file. This later disappoints your growth by hitting from all sides. So, don’t let your company run into a backlash. Make your registration right away and secure your success for rapid growth. 

What is the business registration number (BRN)?

BRN is a unique identifying code that you can use to brand your company. This will provide limited access to your business information for your stakeholders. 

A piece of verified identifying information or a federal occupational alphanumeric number can be used to incorporate a business. And these have multiple identities and are free. It can also be applied digitally to speed up the procedure and save time.

Most businesses are required to register before they can do things like hire workers, request loans, open bank accounts, and more. The IRS uses this identity for tax-related purposes.

Benefits of having a business registration number:

As mentioned above, BRN has lots of benefits, including the following points:

1. Finance

Your company’s registration number is useful when creating invoices, monitoring finances, or using any other accounting software.

You must apply for this number through a suitable state or national authority, depending on where you live, to start using it.

2. Paychecks

When hiring and paying employees, being able to distinguish between accounts and payments is crucial, which is why you should have both a personal and business bank account.

Because of this, you ought to register a separate business bank account and use your EIN as the reference number for any necessary wage payments. Moreover, if any of your staff receives cash, they are required to declare it and show identification with their company registration number.

3. Service agreements

You must have a written contract if your company offers services to customers. Both parties are shielded from potential arguments or conflicts by service agreements.

By doing this, you will safeguard your company from unanticipated legal issues.

You can use your contract as a reliable legal justification for any kind of settlement if there is ever a dispute between the parties, even if it goes to court.

4. Liability restriction

One of the main advantages of a registered firm is the limited liability protection it provides for its members. As a result, the promoters of the business would not be held personally liable for its obligations. Having limited liability protection will allow the business owner to take chances without worrying about losing everything because there is always a chance that operating a business will result in losses.

Its benefits are too numerous to list. Let’s get into the requirements to get a BRN. 

Required document:

• ID proof
• Passport
• Driving license
• Address proof
• Ownership documents (partnership deed, certificate of incorporation, or memorandum of association)

How to verify a Business Registration Number?

A BRN number can be obtained at the nearest District Industries Center (DIC) through the Internet portal, and the procedure is simple. Here is a step-by-step tutorial for getting a BRN number:

• Go to the business registration portal. If you’re a new user, click “Register” to create an account.

• After logging in, choose “Department of Industries” from the list of services.

• Choose the “Registration of New Enterprise” option from the drop-down menu.

• Enter the name, address, and contact information of the business.

• Upload all necessary paperwork, including the certificate of incorporation, the articles of association, and the memorandum of association.

• Pay the required registration fees.

• Apply, then await approval.

• You will be given a BRN number after your application is accepted, which you can use for all business-related activities.

What will happen if you run a business without registering?

• If your business is not registered, you are not entitled to the legal safeguards of other businesses, such as limited liability. This makes you personally responsible for any debts or obligations the company accrues, as well as putting your company at risk of lawsuits.

• It’s possible that you won’t be able to use every funding option. Many investors, lenders, and other funding sources require that businesses register before they will grant capital. Therefore, if you aren’t registered, it’s impossible to secure the financing your business needs to grow or survive.

• If you don’t have a business registration certificate, you might not be able to access resources specific to your industry, such as trade journals or trade shows. This may make it more difficult for you to network, form alliances with other businesses in your industry, and stay abreast of developments.

 

Your company plan is immaculate, and you have an outstanding startup idea. But what about your company registration? Still, pending? Don’t delay. Turn your business into a brand. Filings First – We’re providing business  registration services

Late registration may affect your business’s growth. Secure your success and ignite your goal. Do early registrations for your fast growth.

FAQS

1. Can I operate my business without a BRN?
   No, a BRN is a legal requirement for operating a business entity in India. Operating without a valid BRN can lead to legal and financial consequences.
2. Can a BRN be changed?
   Usually, BRNs are unique and unchangeable for each entity.
3. What is a Business Registration Number (BRN) in India?
   A BRN is a unique code assigned to businesses by the government, verifying their legality and compliance with regulations.
4. Which businesses need a BRN?
   Sole proprietorships, partnerships, LLPs, and companies require a BRN during registration.
5. Why is a BRN important?
   A BRN establishes a business’s legitimacy, aids in taxation, grants access to benefits, and boosts credibility.