Can Operations Be Carried Out From Any Other State Even When The Registered Office Is In Other State? | Semantic Taxgen Pvt Ltd
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Can operations be carried out from any other state even when the registered office is in other state?

June 04, 2024

As per provision of company law even though the company is registered in some state can its operation be conducted from some other state?

Yes, It is possible for business firms to incorporate in one state and operate business in another state in India. The enterprise registration in India is carried under the law of the Companies Act by the Ministry of Corporate Affairs at the central level. Companies that are duly registered can conduct their business within any state or within several of the states within India.

However, there are several important considerations to keep in mind:

Registered office: Your business must be registered in the state in which it is incorporated. This serves as the company’s official address to which all official correspondence is directed.

Compliance: It’s essential to adhere to the laws and regulations of each state where your company operates. Each state may have its own requirements concerning business operations, licenses, taxes, and more.

GST Registration: If your business is cross state, that is if it extends to more than one state, then you are likely to be required to register for the GST in any of the states where you operate.

Branch Office Registration: Indeed, if you have physical business outlets/branches and offices in other states, it may be mandatory that you register the branch offices in the particular states as individual entity offices.

Professional Advice: It’s therefore important to consult a lawyer or any legal office so as to get a professional opinion on the appropriate legislation required to run the business in each of the states of operation.

In conclusion, it is not impossible for a company to register in one state and implement the business in others in India but, one has to be fully aware of the laws and legal frameworks of the particular states to avoid legal hitches in the implementation of operations.

FAQs:

1] Is there any compliance required for conducting operations in a different state?

Answer: Thus there is no formalities or even a need to write to the government for commencement of operations in any part of India other than the registered office of the company. However, if it intends to keep its books of accounts at any other place than the registered office then the company is expected to file a form called Form AOC-5 with the Registrar of Companies (ROC) regarding this fact.

DISCLAIMER: The information provided in this article is intended for general informational purposes only and is based on the latest guidelines and regulations. While we strive to ensure the accuracy and completeness of the information, it may not reflect the most current legal or regulatory changes. Taxpayers are advised to consult with a qualified tax professional or you may contact to our tax advisor team through call +91-9871990777 or info@semantictaxgen.in. the appropriate government authority to verify the accuracy of the information and to obtain advice on their specific tax situations.

 

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