Due to globalization, in today’s world, anyone can decide to start a company. The only thing you are expected is to have the dedication to provide the best goods and services to the public. Opening a company is equally important as it’s registration. Moreover, company registration is not compulsory, but it is a smart choice to do so.
In India, company registration is an easy process and it comes with some attractive benefits for the company.
For any entrepreneur, registration is the first step to establish himself in the market.
Company Registration Meaning
Company registration means to have legal status to do business. Earlier company registration is used to be hectic and tedious. But with the growing age of the internet, new ways have come up for the online company registration and reduce the paperwork, making it easier.
Importance of Company Registration
Loan works as working capital for an organization, without which it is impossible to manage the company. As the company is registered, it will be easier to get a loan from the bank. Having a separate company bank account is an asset to the company, as it helps to maintain a professional and personal bank account efficiently.
Separate legal entity
A company has its own separate legal entity to its director and the company members. Private Limited company registration gives the separate legal recognition to the company within a particular jurisdiction. Basically, in a corporate world, those who have registered are superior to the ones who haven’t.
As the company is registered, it will influence to create a better image in the market. No one wants to invest in the company who lesser known. Therefore for the success of the company in long run, it is better to register the company.
Tax liability is higher on sole trader as compared to companies. There is no tax redemption in case of a sole proprietor. The company will generally get a few tax reductions for certain activities like advertisements, education, etc.
In a proprietorship, the sole trader is the one who manages the company and takes care of it alone. If any misfortunate happens to him the entire business would suffer. But in the case of a company, as it has the separate entity from the directors and the company members, any action of a particular company member, a company won’t suffer from any adverse effect.
Documents required for company registration
- Full Name
- Father’s/ Husband Name
- Complete address including PIN Code
- Phone number with STD/ISD code
- Mobile number
- Photocopy of every proposed director