If you are planning a startup of Hosting Company, then you must think about legal requirement for hosting company because it is essential to register your company under Companies law and also other legal registration like trademark and GST registration is essential for a Hosting Company. This article talks about the meaning of hosting company and its legal filing.
What is a Hosting Company?
A web hosting company is a company that provides services for web hosting which means they allowed the Organization and Individual to post a website or web-page onto the internet. A web host, or web hosting service provider, is a business that provides the technologies and services needed for the site or webpage to be viewed on the Internet. Sites are hosted or stored, on individual computers called servers.
Legal Requirements to Start Hosting Company
To start any company, you have to complete several legal compliances, which you may face many problems if you do not finish it. E.g., Company registration, trademark registration, ROC compliance, GST registration, etc. For a web hosting company, the following Legal Compliance must be completed
Private Limited Company Registration
For a company, its registration is essential because it works for a legal proof and you get many benefits from it. For Private Limited Company, it is necessary to be a minimum of two persons for its incorporation. The process of Incorporation is easy and straightforward.
You can file your application online through MCA portal. You have to obtain first your Director Identification number and Digital signature certificate for which you have to register your application on MCA portal in this you have to submit your director’s personal and professional details. After this, you have to check the availability of company name.
After getting a name of the company you have to file your MoA and AoA, this is very important for incorporation. After successful submission of the above filing, you may get your company registration number.
As you know that in today’s world, it is straightforward to copy anything, so trademark registration is also necessary so that nobody uses your company’s trademark. This is necessary so that no one has taken advantage of copying your trademark and not benefiting from it. A trademark is a brand name or a logo of the company which is different from other company, and it will represent your company to others.
The process of Company registration is simple, and you have to file your application online on the official website of trademark registration. And also you have searched for a brand name and logo on the internet, so it will make you different from others. After submission of filing, you may get a trademark.
ROC Annual Compliance
It is mandatory for every company to make compliance with the ROC. ROC is registrar of companies which is appointed by Ministry of Corporate. ROC governs Company administration, they will check on the activities of your company. So every Hosting company needs to file some compliance to ROC.
You have to file MGT7 form year for your Financial Statement in which you mention all your financial details of a company including Balance sheet and profit and loss. And you have to file an AOC4 form every year for the annual return of your company. There are many others compliance like annual general meeting details and other which has to file under ROC Filing.
What GST came is mandatory for those whose turnover is more than 20 lakh rupees, and in some state, it is 10 lakh rupees. In case of failure of registration, you will be liable under GST law, and it is a punishable offense under GST laws. The process of New GST Registration is easy for which you have to visit the official website of GST where you have to file your application.
During filing of an application, you have to submit some supporting documents like PAN card and TAN card details, company incorporation certificate and other professional and personal id proof. You will GST identification number after submission of a form. You have to mention your GST identification number on your invoice.
Impact of GST registration on Hosting Company
- Company and their client will become eligible to claim full credit of GST. This will eliminate the cascading effect.
- You will be legally recognized as a supplier of goods or services.
- Proper accounting of Taxes
- Legally authorized to collect taxes from customer
Conclusion for Legal Requirements for Hosting Company in India
As you can see that all above given compliance is necessary for a Hosting Company because you will get the benefit of it and also some compliance like GST registration is mandatory. So if you are planning a startup of a Hosting company, then you must think of company registration, and other registrations which are required by a hosting company so there will be no difficulty will arise for you in the future.