Benefits of Company Registration in India - VRGyani News and Media


Thursday, December 20, 2018

Benefits of Company Registration in India

India is going through a major economic change in past years which has seen large number of start-ups growing at a massive rate year after year. Surprisingly India has the third largest number of start-ups in the world.

But you will be surprised to know that India also has the second highest number of unregistered businesses in world. Although small traders find it cumbersome to register a company but incorporating your business will make you eligible for a lot of benefits and legal protection. This leads to better business operations and compliance management.

Limited Liability Protection

A business is always full of risks and losses thus the owners will be responsible for all investments, debts, losses, profits. Company registration helps you limit your liability to the company losses and ensures that your personal assets are not compromised. If you are registering LLP, OPC or Pvt Ltd Company; all partners of the business get limited liability protection.

Easy Exit Option

A registered business like company or LLP is a separate legal business entity with its own assets and liabilities different from its promoters and shareholders. Hence, share transfer process is easy. 

Capital and Fundraising

Venture capitalists and investors prefer registered entities for parking investments as it is considered a safe and secure entity.  All banks and financial institutions prefer registered business entities for loans. Thus, if you want to raise funds in future; registering a company is really fantastic idea.

Brand Value and Marketing

A registered business has a brand value in market. This brand identity can be monetized by companies through franchising, brand equity and more. Positive brand image is beneficial in improving business realm with  customers and suppliers and investors.

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