7 Reasons to Register a Private Limited Company in India

Your entrepreneurial dreams are just dreams if you don’t have a legal foundation to put it upon. A company provides one such foundation. As a business entity, it’s the most popular in India.

Deciding the type of company you want sets the tone of your business through its life cycle. But why choose a company? What makes company registration in India the best decision you can ever make for your business? Well, we don’t have one or two, but 7 reasons for you to register a company in India.

Reasons for Company Incorporation

1. It’s easy to register
2. It gives you Limited Liability
3. You can Attract funding easily
4. You can make it immortal
5. It’s separate from the owner
6. It’s flexible
7. It’s not risky to register

It’s Easy to Register a Company

The company registration process is quite easy for two reasons. One, the process is entirely online. thus, it allows you to register your business without even leaving your house.

Secondly, you don’t have to do it yourself. We have experts in our midst that for a nominal fee can register your company in your behalf, and the process will be completed in 7-12 days.

A Company gives you limited liability

One of the greatest reasons to register a company is lack of financial risk it poses to the directors. The liability of directors and shareholders is limited to their shares.

For instance, if the company suffers losses, the directors only have to face the loss of value of their personal shares that are invested in the company – their personal assets won’t be affected.

You can attract funding easily

Without funding, no business can survive. That’s why, many entrepreneurs arrived at the conclusion that they have ensure that their business appears as legit as possible.

Therefore, pvt ltd company registration is a preferred method of gaining a business entity. it gives your business an aura of legitimacy – allowing you to appear more organized and therefore, more trusted by the people.

And when people trust you, so do the investors, for they know that your business can take off once it’s built on trust.

You can make it immortal

That’s just our dramatic way to say that your business can survive forever through it’s unique perk called perpetual succession. A registered company, after losing the director, can get another director through share transfer.

It’s separate from its director

A company is a different entity than its directors. Being a separate entity, it can own property, file court cases, and conduct any legal proceedings.

It’s flexible

One of the greatest things about incorporating a company is the company’s flexibility. A company, as an organization can convert into a bigger company when there are more directors, shareholders or revenue than a certain limit. Even if the company doesn’t convert itself, you can do so by following a simple conversion process.

It’s not risky to register

The company, as an entity is comparatively risk free as compared to other business entities. It’s separate from the director, it’s flexible to the point of being convertible into anything, and you can shut down your company easily as well.

All of these factors combined make a company, the most risk-free business entity among its peers.

Conclusion

Starting a business is a risky endeavor, with many uncertainties about its future. You can mitigate these risks and uncertainties to some extent by starting small, by starting a company.

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.