Anyone who wishes to start a new venture or wanting to grow their business, it is important to register the company. India has the second highest number of business which are unregistered in India. In earlier times, the registration of a company used to be a costly as well as cumbersome process. As a result most of the entrepreneurs run their businesses unregistered as a proprietorship firm or partnership firm. With the advent of technology and digitalisation, the process of registering a business has become extremely affordable and convenient as well. Hence, the small business companies can avail a variety of benefits by registering, some of which are discussed below.
- Limited liability
One of the greatest advantage of a registered company is that the entrepreneur receives limited liability protection to the members. A sole trader is legally responsible for all aspects of his business including the debts as well as losses. On the selling of a defective product or in case of an error, the person running the business is held responsible. However after registration, the promoters of the company are no longer personally liable for any debts or losses. Business always involves certain risks, thus having a limited liability protection ensures the entrepreneur that he can take risks without the fear of losing everything.
- Easy transferability
Online company registration in India removes a major hurdle of shared ownership of a business. In cases of unregistered partnership firms, it becomes difficult to transfer the proprietorships since they are extension of the proprietor. However, if the companies are registered, the business is considered separately as a legal entity with the assets. This makes the transfer or sharing of ownership very easy for a registered business company.
- Funding for the business
Funds are the major requirements for any business. But the unregistered companies cannot syndicate equity funding. The banks and financial institutions provide loans only to the registered business companies. This makes it highly important for top CA firms in Bangalore to get themselves registered if they wish or plan to raise debt and equity funds.
- Meeting buyer criteria
Large businesses prefer to work with companies that are registered. This by registering your company online makes you eligible to meet the buyer as can be seen in case of msassociates. The huge advantage and benefits which a person receives by registering their business online makes it highly recommended.