A recognized identification code is a unique identity that any business can have thanks to its Business Registration Number (BRN). In official documents and transactions, this special number is used as the business’s formal identification in the legislature where it was registered.
The BRN Registration makes it easier to track enterprises for legal, regulatory, and tax purposes. It is frequently necessary for a number of tasks, including opening a bank account in the company’s name, filing tax reports, obtaining business permits, and finishing other administrative duties.
The Business Registration Number may go by several names in different jurisdictions. For example, it may be referred to as an Employer Identification Number (EIN) in some jurisdictions and a Company Registration Number (CRN) in others.
Now, Let us understand the importance of BRN registration in depth.
Importance of BRN Registration
There are many different kinds of enterprises operating in India. These include limited liability partnerships Registration, private limited companies, sole proprietorships, and one-person companies. Depending on their structure, these business entities can register and use the benefits (such as exemptions, concessions, etc.) that come with the BRN number. Do you know there are around 7 Types of Company Registration in India.
For instance, companies operating in the MSME sector need an MSME Registration number, which can be obtained through the Udyam Registration site. This number assists MSMEs in various ways, including loan restructuring, MSME cluster development programs, upgrading technology, helping them with postponed or delayed payments (via the MSME Samadhaan scheme), and more.
However, what happens when a company is just getting started and lacks the necessary paperwork or credentials to be eligible for certain other business registration procedures or licenses?
It usually happens with one-person startups and micro businesses. The BRN registration number is helpful in these situations.
Benefits of BRN Number
Credibility in the Business World
Gaining the confidence and trust of prospective clients is difficult but crucial for a startup. A BRN registration code can prove your company’s legitimacy and existence. To increase your company’s legitimacy and foster client faith in your business entity, you may also apply for a certificate of business incorporation.
Access to Finance
You will need to provide proof of your business existence and validity, whether you are seeking financial help through several MSME loan schemes or approaching a bank or NBFC for a business loan. A BRN number is helpful here. Explore 9 government schemes for MSMEs run by women entrepreneurs.
Notification Alerts for the Most Recent Updates
A small business owner has many hats to wear. Furthermore, it is occasionally feasible to overlook a regulation modification. Having a BRN number will enable you to stay informed about any recent government updates and maintain compliance for your firm with different rules and regulations.
Compliance with Legalities
Obtaining a BRN gives you the assurance that your company is operating lawfully and in accordance with local ordinances. It protects you against potential penalties, charges, and legal issues. Don’t miss these proven strategies to minimize GST penalties.
Tax Payment
To pay your taxes, you must have a BRN. You can obey local tax laws and regulations, file your business taxes accurately, and receive tax advantages in this method.
Knowing the benefits of a BRN number, now let us see how to register for a BRN number
Online Registration of BRN Number
Here are the steps of BRN registration online:
Step 1: Go to the official website of registration. The website differs as per your location.
Step 2: To start the procedure, choose Sign-Up, Apply Now, Register, or similar alternatives.
Step 3: Acknowledge these terms and conditions.
Step 4: Enter your phone number and email address, then confirm it by entering the OTP you shall receive
Step 5: Enter your business name, address, area type, ID proof, DSC, primary business activity, Acts under which the business has been registered, and other information when you begin the BRN application process.
Step 6: To obtain your auto-generated, one-of-a-kind 16-digit number or BRN registration certificate, fill out the form and check your email.
Takeaway
Thus, when a business entity registers, a government agency or regulatory body issues it with a unique identification number known as a Business Registration Number (BRN). With this number, one can do business in India or in a particular state if necessary.
The BRN number also records commercial transactions and interactions for legal, regulatory, and compliance purposes. In general, the BRN number is necessary to monitor all of the business’s financial operations.
FAQs
- What is BRN registration?
A business’s distinctive identity is determined by its business registration number. In general, it involves submitting the necessary documentation and information to the relevant government authority responsible for business registration.
- What is a CIN number? Is it the same as BRN Registration?
CIN registration is different from BRN registration. A company incorporated in India is assigned a 21-digit alpha-numeric code known as the Corporate Identification Number (CIN), which is obtained through registration with the Regional Offices (ROC) located in several states of India under the MCA.
- What documents are needed for BRN registration online?
Documents such as business proof, tax-related documents, owner identification proof, etc are required for BRN registration online.
4. What is the 16 digit BRN number?
The BRN number, also called the BRN code, is a special 16-digit number that a business gets automatically when it registers online through a portal in Rajasthan. This number confirms that the business exists and provides it with a unique identifier for all its activities.
5. What is the difference between BRN and SAN?
In Rajasthan, a Business Registration Number (BRN) is the same as a Sanstha Aadhaar Number (SAN). The SAN is a 16-digit number that gives each business a unique identity. The Rajasthan government uses these numbers to help both small and big businesses get recognized.