Articles

Importance of company registration in India

by Legal Salaah Business Registration Solutions in India

Going to start a company, it is very necessary to get registered; there are many benefits from registering the company, which has been mentioned below. It is mandatory for the company to register with the MCA under the Companies Act 2013 if it needs access.

What is a company?

When a few trained officers run an organization together, it becomes a company. The company is formed by the shareholders present in the company to sell and buy goods or to exchange services. Some companies are associated with for-profit organizations and some companies also work for non-profit organizations. A single person cannot run any company, he needs many workers to run that company, for which he provides employment to many people. Companies have the right to buy shares of other companies and name them and if necessary, they can also sue other companies. In addition, a company borrows money from the market for its capital growth and also collects money by selling its shares. If seen legally, then all types of companies have the same rights and responsibilities. Also, they have some legal rules as a responsibility, which is mandatory for them to follow. If any company violates the rules made by law, then it is a punishable offense for them.

Types of companies:

  • Limited Liability Partnership
  • Public Limited Company
  • Private Limited Company
  • One Person company

 

Why is it necessary to register a company?

It is very important to register any one company to run it smoothly. Let us know what are the main reasons to register a company and why should a company be registered.

Company registration gives the main identity to the company: - To run any company in India, it is very important to register it. Because it gives the company a distinct identity. Once the company is legally registered, it is easily able to give confidence to the consumers. When registered legally, the company gets a legal name, address, and identity. If someone registers the company with their preferred name, then you also get to know if someone has used this name for their company before and if they have chosen to take possession of their name. So no one can use that name for their company name.

This protects the company holder from personal liability: - When a person registers a company, even if it is in his name, he does not have to personally compensate for any loss in the company. In simple words, a lawsuit for any property such as any heavy damage can be filed in the court, but the person who owns a registered company is not fully responsible for it. If the company is registered, then suppose that there is a loan outstanding on the company or there is an outstanding amount of the company which has to be paid, in such a way, if you are unable to make the payment and there is a big loss in the company, then it will be repaid to the house. Any item cannot be sold because the company is registered.

Getting investors for the company easily: - To run any company in India, or anywhere in the world, it requires the entire financial amount. In such a situation, no one person can raise enough funds to run a company nor can he get enough resources. In such a situation, the company needs some investors or it takes a loan from a bank to fulfill its needs, for which it is very important to get the company registration in India. If a company is not registered, then no investor invests his amount in such a company. Before inviting an investor to invest in the company, it is necessary to register the company with MCA.

A registered company attracts customers: - It is not easy for the customer to trust any company or product manufactured by them, but the members present in the company make the product so attractive that it attracts customers, and it becomes very easy to convince them.

To maintain the business for a long time: - Some people start their business on a small scale, at that time they do not register that business. In such a situation, how long he will be able to run his business, how long it is not possible to guess. If he wants to run his business for a long time, and he keeps his future plans ready in advance, then it is necessary for him to get his company registered.

Company registration in India is the key to unlock the path of lifetime earnings from small to large scale for a person who wants to take his business to a height or bring his talent to the whole world.


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About Legal Salaah Innovator   Business Registration Solutions in India

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Joined APSense since, August 17th, 2019, From New Delhi, India.

Created on Feb 2nd 2021 08:10. Viewed 107 times.

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