web hosting

Legal Requirements For Starting A Web Hosting Company

A Web Hosting Company provides services of web hosting that allows a web-page, of an Individual or the Organization to post a website on the internet. A web host service provider is a business that provides storage space and easy access for the websites. Sites are stored or hosted on different computers are known as servers. It can be a profitable business yet, wildly competitive field. A hosting company will rent their consumers a certain quantity of storage space and bandwidth, for a certain period of time. As a business owner, you will earn from the difference between the costs of operating your servers or by the amount you charge your consumers, reseller costs and customer services.

At the rare minimum, knowledge of web related is required to operate a hosting business. You should have a functioning understanding of PHP, CSS, and HTML – enough to build SEO-optimized website to allow for customer logins and to take payments. For the more determined who is looking to operate their servers, you’ll need object-oriented programming experience.

The time commitment is essential for starting a web hosting business. Initially, you will spend many hours testing, designing and marketing your websites. You may have to allocate time on a daily basis maintaining sites, processing payments and providing customer support. You should be ready to spend a couple of hours a day working on your business at first. Eventually, if everything goes right, your company will grow to become a full-time job with great pay. The evolving web hosting is a market stirring up with new opportunities for entrepreneurs interested in starting their hosting company. It takes hard work and proper planning to make web hosting lucrative.

If you are planning to start a Web Hosting Company, then you must think about legal requirement for your hosting company because it is essential to register your company like Private Limited Company Registration under Companies law and also other legal registration like trademark and GST Registration is necessary for a Hosting Company.

Legal Requirements to Start Hosting Company

To start any business, you have to complete several legal permissions, which you may face many difficulties if you don’t finish it. E.g., Company registration, GST registration, ROC compliance, trademark registration, private company registration, etc. For starting a web hosting company, the following Legal Compliances must be completed

1. GST Registration.

GST is mandatory for those turnovers is more than 40 lakh rupees, and in some state, it is 20 lakh rupees. During GST registration, you have to submit documents like TAN card and PAN card details, ID proof, company incorporation certificate. After submission of a form, you will get GST identification number. On your invoice, you have to mention your GST identification number. If you don’t register, it is a punishable offense, and you will be responsible under GST laws. GST registration process is easy you have to visit their official website and file the application.

Effect of GST registration on Hosting Company

  • Company and their consumer will become eligible to claim full credit of GST. This will eliminate the cascading impact.
  • You will be legally recognized as a service provider or supplier of goods.
  • A precise accounting of Taxes
  • Legally authorized to collect taxes from consumer

2. ROC Annual Compliance

ROC is registrar of companies appointed by Ministry of Corporate. It is necessary for every company to establish an agreement with the ROC. ROC governs administration, and they will check your company activities. So every company needs to file compliance with ROC. You have to register a form your financial statement in which you need to mention all the financial details of a company including profit loss and Balance sheet. And you have to file an annual return of the company every year. There are many other compliances like annual general meeting details and other which has to register under ROC Filing.

3. Trademark Registration

A trademark is a logo or a brand name of the company, and it represents your company which is different from other company. As you know, in today’s world, it is easy to copy anything, so it is essential to register your company trademark so that nobody uses it. It is necessary so that no one will take advantage of copying and benefiting from your trademark. You have to search for a logo or a brand name on the internet, and it should be different from others.

The process of registration is simple, and you have to file your form online on the official website of trademark registration. After submission, you may get your trademark.

4. Private Limited Company Registration

For a company, its enrolment is essential because it works for legal proof and you can get many gains from it. Minimum two directors or two shareholders required to register a private limited company.

The process of Incorporation is straightforward and easy. First, you have to obtain Digital signature certificate and Digital Identification number for which you have to register on the MCA portal, submit all the professional and personal details. After that, you must check the availability of a company name.

After getting the name for the company you have to file AOA and MOA, this is very essential for establishment. After submission of the above filing, you may get your company registration number.

Conclusion

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 start-up of a Web Hosting company, then you must think of all the above related aspects both legal and non-legal.

Afleo.com is one of India’s leading websites when it comes to Company Registrations, Trademark Registrations, Annual Compliances, GST Registrations and Modifications, IEC Registrations and Modifications. Our mission is to save time of our clients by taking care of above related services so that our clients can focus more on their business.

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