The liberalized economy, opening-up of markets for foreign investors, advent of internet technology, favorable business policy, and a sublime infrastructure are stimulating startup culture in India. Today, in the matter of startups, India holds the third rank and today startups are playing a crucial role in employment creation. If you have an idea for a startup or own a small business and want to scale it to a large level, then don’t forget to strengthen and secure it legally.
Company Registration is an imperative legal procedure for every business, whether a startup or a small business. Company Registration proves immensely beneficial for small businesses and startups. This web article aims to highlight the top five advantages of company registration for small businesses and startups.
Top Five Advantages of Company Registration for Small Business and Startups
Protects Business Owners from Maximum Liability
Company Registration limits the liability of business owners. When you run a startup or small business, then your funds are limited and risks are abundant. There are chances of business failure in case of excess debts, wrong business strategies, and market collapse. In case of business loss, business owners become solely liable and in the process of indemnity, they have to lose their personal assets.
When you Register your startup or small business from a Top law firm, then company owner and company become a separate legal entity that reduces the personal risk of business owners and saves them from maximum liability, in case of business failure.
Various Tax Exemption
It is the most valuable time when you can commence your startup and register your company to avail various tax exemptions. Today to promote startup culture and to strengthen the startup landscape in the country, the Government of India is offering a lot of lucrative schemes like Startup India. Various tax exemptions and minimal compliance facilities are provided to new entities under this scheme, therefore new entrepreneurs have a splendid opportunity to put more funds into the business, rather paying excessive tax.
Developing Brand
When you register your company, that shows your mission and vision to establish your startup as a brand. People trust a legally registered company and with quality business operation and services you can establish your startup as a brand in the market.
Expansion to International Market
Through company registration, you can expand your business at an international level. Only registered companies are allowed for international tie-ups, mergers, and collaboration.
Fund Raising for Business
There is always need for funds when you run a startup and in the process of raising funds, company registration proves beneficial for the startup. If your company is registered by a Top law firm in India, then raising funds or getting loans for business becomes easier. In the context of raising funds and other monetary benefits, following are the primary benefits of company registration:
- Through company registration getting loans from banks becomes easier
- There is always a requirement of a company registration number when you want to avail profit for your business from the government schemes. For example, if you wish to register your company under Udyog Aadhar, there will be a requirement of a company registration number
- In case of opening a bank account on behalf of your company, company registration is mandatory
- If your company is legally registered, customers will have more faith in the company which is assuredly a great positive for the business.
- If you want to attract investors and raise funds from the business model, then investors will be more likely to believe you if your company is legally registered, while finding investors for an unregistered business will be difficult.
Conclusion:
As we comprehended from the examples above, there is a great significance of company registration for the business and it ensures numerous benefits for the company and the company owner. Today, the registration of the company is conducted electronically, making it transparent and efficient. In case, if you fail to register your company then your business may face significant losses in the future.
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