What are the Top 6 Reasons for Company Registration in India?

A Company is India’s most popular business entity that has gained a lot of traction since the introduction of the Startup India initiative. Entrepreneurs from every corner are now rushing towards the Ministry of Corporate Affairs for company registration. Why the sudden interest? Is there value in registering a Company in India? Yes, there is. This article explores the six critical reasons behind it.

Ever since the introduction of the Startup India initiative, everyone has been under the influence of the entrepreneurial bug. It doesn’t matter what type of business one does and at what scale they do it; if there is a business idea, everyone wants to turn it into an institution – a Company.

Let us explore the top six reasons behind this craze.

Company Registration leads to a Separate Legal Entity.

Unlike all unregistered business entities in India, a Company is a separate legal entity. As you incorporate it with the aid of your business consultants, you give it a new identity. It is akin to birthing an individual within a business arena. This person has a PAN card, a bank account and has the power to own property.

The Directors get the Perk of Limited Liability.

For new entrepreneurs, doing business becomes easy when the risk involved is little. Therefore, they gravitate towards a Company that grants them limited liability. What does it mean? It means that a shareholder is only liable for the losses to the extent of his investment in the enterprise. None of his personal assets will suffer any harm if the business entity goes down.

This particular benefit has given courage to most entrepreneurs to start their enterprise with vigour.

It can exist perpetually.

One of the substantial benefits of online company registration is that it allows the business entity to exist even after the director leaves the mortal coil. Through share-transference, the directors and shareholders can transfer the shares that belonged to the deceased to another. In doing so, the Company’s legacy persists long after the incapacitation of its leader.

Transferring the shares is easy.

A Company has the perk of perpetual existence because of the ease of the share-transferring process. All it takes is one board meeting and approval of the board members, and viola, shares traverse from one shareholder to another.

The transferability aspect also helps business owners expand their business by inviting investors.

Getting funds is easy.

For a Company, it is easier to get funding. And if it gets Startup Registration, it can acquire the privilege to go to the bank and get loans at a low-interest rate. Furthermore, being a registered business entity, it has investors who can confidently invest in it without worry.

It is easy to register a Company.

The ease at which you can incorporate a Company is astonishing. The company registration process is online and self-explanatory. All you need to do is contact a Company Secretary or a Chartered Accountant, get their details and incorporate your business entity.

Conclusion

Company registration services have paved the way for entrepreneurs to come out of hiding and dare to establish a business entity. If you are one of them, consult with our experts. We can deliver optimal incorporation services and register your Company in no time.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.