26/06/2022
Registering a Company in India: Why?
Why register a company?
Registering a Company makes it easy for potential customers to identify you as a legitimate operation. A registered company increases the authenticity of your business.
It helps your business:
i. Protect from personal liability
ii. Create a customer base
iii. Improve bank credits and potential for good investment from reliable investors
iv. Offers liability protection to protect your assets of the company
v. More capital contribution and more stability
vi. Helps to strengthen growth potential
Practically, the main objectives of registering a company can be summarized as follow:
1. To open a bank account of the business: Be it any company, a current account with the bank is one of the important assets of the business and it is also a legal proof of the existence
2. Transfer of ownership: In the course of business, if the need arises to transfer the ownership, then in the case of a registered entity, transfer of ownership can easily take place.
3. Limited Liability Protection: Incorporating a business protects the business promoters from losing personal property in case the business incurs any losses
4. Financial Assistance: Most financial institutions and banks prefer to provide funding to registered entities in the form of debt or equity. A legal business entity attracts potential investors
5. Recognition of Brand: The choice of the common person to buy any product or get any service is greatly influenced by the brand name. This explains the importance of registering a business, thereby paving way for sustainability.
In the forthcoming article, we will discuss the types of business entities prevalent in India.
Thank you!
-Team Obeycharter
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