Why company registration is important for startup's
Now-a-days everyone has some business idea which he wants to convert into reality to become a successful person. People with good business idea can approach investor's for raising funds. Investor's always look for a private limited company for the investment & ask for a good percentage of Equity. Holding Equity Shares in a Company allows an investor's to participate in profit of the company & also give them a right to participate in Company's assets at the time of Company dissolution.
Doing business after Company registration reflect your Intention for doing business in a systematic manner. Following are the main advantages of Company Registration:
When you register a Company, you get a Corporate Identification No allotted from Ministry of Corporate of Affairs which is a separate Identity for your Company.
People feel very much comfortable when they deal with a registered entity.
After Company Registration, you can open a Current account for accepting the payments.
You can avail the loans from bank in your Company name depending upon banks terms.
You can easily keep separate & track of your personal & business expenses.
No personal liability, Company always treated a separate entity in the eyes of law.
Further, there are so many other benefits of company registration. Company registration is not a very much critical process, it is very easy. Two or more person can form a private limited company with their basic KYC documents. It takes around 15-20 working days to complete the process of Registration.