How is company registration beneficial for my business?

Are you thinking about starting a business in India?

If yes, then this is the article for you. According to recent statistics, more than 70% of companies in India are registered under company law. However, the majority of new entrepreneurs are unaware of the significance of company registration. As a result, we are here to provide you with information on how company registration in Mumbai can benefit your business.

13 Benefits of Company Registration

• Protection of your company name:

The first and most important advantage of company registration is the protection of your company's name. When you register a company, it is protected from being used by others. It also assists you in the creation of your website, complete with your domain name. If you want to sell your products in another, having a registered company can assist you in obtaining trade deals and partnerships.

• Potential of raising funds:

You can easily raise funds from various financial institutions or investors after company registration. Previously, only a limited liability partnership or a private limited company was assumed to be capable of raising funds from venture capitalists, angel investors, and others. But now, Private Limited and Public Limited Registered businesses can also raise funds for their company.

• Easy to conduct international business:

If you want to do business in another country, it will be easier if you first register your company as a private limited or public limited in your own country. This makes it simpler to open bank accounts and obtain credit in other countries. You may also discover that your customers prefer doing business with a registered company over an unregistered one.

• Enhanced credibility:

Registering your company as a private limited or public limited company adds value to the company and increases its credibility in the eyes of your customers. It increases the brand's trustworthiness in the minds of your customers, who generally prefer buying and engaging with registered companies only.

• Considered as a distinct entity:

When you register your company, it is considered a separate entity from its owner. It has its own set of rights and responsibilities, making it easier to manage and conduct business. By registering your company your customers perceived your company as a brand

• Limited Liability:

The most significant advantage of registering a private limited or public limited company is that it will protect you from losses through personal responsibility. Limited liability means that if your company fails or suffers a loss, the loss can only be absorbed by the funds in the company. Your assets and credit history are safeguarded against any debt incurred by your business.

• Tax Advantages:

Numerous tax advantages fall into this category. The first advantage is that your company will be eligible for certain tax breaks when they are announced by the government for registered businesses. In terms of income tax, your registered business can claim tax breaks on a variety of expenses such as rent, electricity bills, infrastructure maintenance costs, and so on.

• Response to Market Changes:

One of the primary advantages of incorporating your business is the ease with which you can change certain aspects of the structure, such as share ownership or appointing new directors. You will also have more flexibility in deciding how to reward yourself and other shareholders through dividends.

• Better legal authority:

Registered businesses have a higher legal authority than unregistered businesses. The government offers more assistance and benefits to registered businesses because they strictly follow all rules and regulations.

• Liability security:

In private companies limited by shares, each shareholder's liability is limited to their shareholding (which may be zero if all shares have been paid for). In other words, except for any unpaid shares, shareholders are not personally liable for the company's debts (if any). Members of private companies limited by guarantee are not personally liable for the company's debts. They may, however, be required to contribute an agreed-upon amount to the company's assets if it is wound up while they are members or within one year after they cease to be members.

• Greater scope of expansion:

Registering and Establishing a private limited company allows you to expand your business by providing more opportunities such as hiring employees, recruiting freelancers and consultants, and so on. As a result, by officially registering your business and making it more reliable for customers and investors alike, you can expand it on a large scale.

• Free & Easy Transferability of Shares:

A company has a separate legal entity from its owners. Therefore, you can transfer shares of your company to any person without the need for consent from other owners. This provides flexibility and liquidity to the business.

• Permanent Existence:

A company has a perpetual succession, which means that it continues to exist even after the death of its members. Furthermore, the ownership and management of the company can be easily transferred.

Conclusion

In this article, we learned about the 13 main benefits of registering your business as private limited and public limited company registration services. It provides your company credibility, gains your customer trust, and grows your business.

Viser Solutions, one-stop-shop solution for your business related to accounting, bookkeeping, taxation, Gst registration, tax return, Cfo services, payroll, financial analyses, incorporation services.