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Importance and Benefits of Company Registration for Startups
Startups are today the global sign of development. They are growing in a wide range all around the world with several utility factors. The young generation is coming up with the ideas to change the life of people and issues we face and give them a tab in an entrepreneurial way. But in the today buzz of startups, most of the people tend to not touch where this all started from. Yes, Company registration is the first step the whole journey of entrepreneurs starts from. All startups need this step to form a big business organization. In India, company registration is a simple and easy process.
What is Company registration?
Company registration is one of the first and foremost steps for startups. Company registration is basically a step to legally establish your company. It means that if you are a registered as a company, you get the legal right to do business. It is an essential process for startups today. Earlier company registration used to be a bit hectic and unaffordable process for startup founders but the advent of the internet has made it easy as well as relevant for entrepreneurs. Company registration is irrespective of Company sizes, which grants your company legal protection. By registering your company, you can avail a number of benefits for your startup.
Importance of company registration
There are numerous reasons why you need to register your startup as a company. From giving your startup an edge in the market to assuring its legal protection and from lowering your tax burden to limiting liability, company registration is the stage in startup world which serves your company all of these factors. As mentioned earlier, registering an organization as a company is a pretty simple, easy and affordable step to be taken. Today most of the reputable companies in the country are registered. Company registration is the step which takes off most of the individual burdens from entrepreneurs.
Benefits of registering a Company
There are a number of benefits of company registration. Apart from giving your startup a legal recognition and a legal right for you, it has several other benefits. Let us know them. Following are the major benefits of Company registration for your startup:
Protection of Limited liability
Limited liability is one of the greatest benefits of company registration. As a sole proprietor or trader, you are solely responsible for all kinds of aspects of your business, including debts and losses. You can save your personal assets after registering your company. Events like a failure of business or any other lead to put sole traders and partnerships in trouble. Directors and owners of Company remain isolated in case of issues like a business failure.
Recognition as a legal entity
Company registration grants your startup a legal status or recognition under a particular jurisdiction. It sets up an existence of the company separate from directors and the company members. Registering your company apparently, helps your organization to grow its market and expand the business as the companies who are legally recognized are more preferred in the corporate world.
Easy loan and business bank account
Another important characteristic of company registration is that it helps an organization to establish a business bank account and for an easy loan from banks. A business bank account is one of them is important assets of a company which is demonstrated by showing a valid proof that your business is registered. Also one of the benefits of company registration is that you can get an easy loan from lenders and investors as you are a registered company.
Low Tax liability
The tax rates on an individual are higher than the tax rates on companies and small business units. Being a sole trader, you are in the same tax slab as an individual. The companies and small business units are subjected for tax deductions for advertisements, repairs, maintenance, Research, and Education. Registration of your startup is a company does lower your tax burden.
Establishing reputation
A Registered company is always considered as a reputable organization. Company registration is a process which enables you to set a mark of reputation among its customers and the stakeholders. Customers and clients are clearly the most important asset of a company, this is also why you need to register your startup as a company.
Conclusion
Registering a company is the first and certain process if you are running a start-up. Apart from giving a number of benefits and owing great importance, company registration is one of the key stages. It lets you hold a power in the market. Company registration is an important decision to make in terms of competing against your competitors and reputation in the market. It has greater applicability than other default stages in businesses.
In case you need assistance for Company Formation you can fill out our inquiry form and arrange a call from E-Startupindia business advisors or you can connect with us at 8881069069
