Registering any of the companies in India is a very good option for the people because of multiple advantages associated with the whole process for example quicker sanction of business loans, the credibility of the business, expansion benefits, and tax benefits for the companies. Hence to register a company in India people need to follow different kinds of formalities in the whole process and the following are some of the very basic reasons why registering a company is a very good idea:
- There will be the easy opening of bank accounts: The current bank account is considered to be one of the very basic requirements and most important assets of the business organizations because it will serve as legal proof of existence. Hence, at the time of registering any of the organizations, it is very important to have a bank account along with copies of the incorporation certificate and memorandum of association which need to be submitted in the whole process. Hence, the easy opening of a bank account is one of the most important reasons for registering a company.
- There will be an easy transfer of ownership: At some point in time, there might be a need to transfer the ownership of a particular business for any of the purposes. Hence, whenever a company will be registered then the whole process of transferring the ownership of assets can be done very easily and in a hassle-free manner in comparison to the unregistered companies.
- There will be limited liability protection: Any business which is prone to incur a loss can avail one of the most important advantages of the registration which is the limited liability protection and in all such cases the assets and liabilities of the promoters will be protected and they won’t be liable for the liabilities of the business. Hence, there won’t be any kind of risk of losing the personal property because the company is registered and is a separate entity in the eyes of law.
- It will help in providing the option and opportunity of secure funding: If the concerned people are interested to move the businesses forward then seeking and securing the right kind of investment cannot be missed out and funding can be in both forms debt as well as equity. Whenever the company will be registered it will always attract the right kind of funding from the best of the investors and this is considered to be one of the best possible ways of impressing potential investors. Also, the banks and financial institutions will prefer to fund the registered companies in comparison to the unregistered ones.
- There will be proper brand recognition: Registered business is considered to be the biggest asset for the organization and will be passed down as an inheritance to be generations and can even be sold to the new breed entrepreneurs. Hence, registering a business is considered to be a matter of necessity for achieving sustainability-related goals.
Hence, the above-mentioned advantages can be easily achieved by the people whenever they go with the option of partnership company registration.