We all wish to have our own businesses, but not everyone’s dream becomes successful. When you successfully incorporate a business, do not forget to register it. No matter which type of company you have, registering it will help you to get benefits. It will also set up goodwill for your company. In this article, we will go through the benefits of registering a company. In this article we are describing about benefits of company registration.

Benefits of Company Registration

• Attracts investors: Investors like the companies that give positive returns. Companies that have the potential to grow, attract investors a lot. Companies that have historical records of doing great in the Indian market, always attract investors. Also, investors always look for a company that is registered with the Ministry of Corporate Affairs. Companies look more convincing when they have a valid registration. This will give the investors a sense of security. If you check the big brands doing well in the market for years, all of them are registered with MCA. So, if you want to bag some good investments, registering your company is the primary thing.

• Attracts banks: Every company gets registered to the Registrar of Companies and Ministry of Corporate Affairs. The whole incorporation process is governed under the Companies Act 2013. Along with that, the company needs to fulfill the provisions of different acts like EPF Act, GST Act, Contracts Act, SEBI Act, etc. When you go through the processes of all these acts, approvals, certificates, and registrations, banks will get a lot of information about your company. The information will be furnished on the public domain. This will show your legal status to your clients, vendors, and even the Government of India. When you are clean with all your details, you can claim business loans pretty easily.

• Credibility in the eyes of financial institutions: All your information is furnished in the public domain. This will keep your company legal and authentic. Your creditors, investors can now believe you with closed eyes. Your company will be considered as a credible one. Everyone investing in your company will now be assured that their money is in a safe place. Creation of credibility will ensure that more investors will come your way. Your business will run successfully without any pause. This is one of the major benefits of registering your company.

• Low income tax benefits: If you have a startup and you want to register it either as a private limited company or an LLP, you will get tax benefits. The income tax department will offer you three consecutive financial years as tax holidays. So, you will run your company, can take up projects, earn a handsome amount of money, and you do not need to pay any income tax for that! This seems pretty exciting. So, if you wish to register your start-up under any type of company heading, do that. Paying low to no income tax sounds like saving a lot of money.

• Existence of your company: Have you ever thought what will happen to your company when you will not be there anymore? Well, death is the ultimate truth and it can knock at your door at any given point. It is better to keep your business secure even when you won’t be there to save it. Registering your company will give it a firm footing. Not only death, there can be issues between the shareholders and people will walk out with their investment at any point. For those instances, you should register your company. If your company is registered, it will perpetually exist. No matter who walks out, the company will run at its own pace.

• Easy incorporation: Previously, you had to visit different departments of the Government offices to register your company. It used to take ages to complete the task and give you the certificate. But with everything going online, it is easier for a person to register his company. Not only incorporation, but with lots of other tasks related to the company incorporation can be done online. Applying for PAN, TAN, Current Bank account; everything seems easy these days. So, when you get to finish your tasks being at home only, you will save a lot of time. As the whole process is online, it will save your efforts too!

• Easy employee management: If you register your company, it will be easier to streamline your employees. You can hire as many employees as you want. Neither the government nor the law will stop you from doing so. Also, you can pay your employees with the cheques issued by government banks. You can also collect state taxes for your employees if you are registered with the state government.

• Legal benefits: When you are registered with the state as well as the central agencies, it will give you legal benefits. By registering properly, your business will stay compliant with the federal, state, and local bodies. You can demand a legitimate status as you are compliant to all the available entities. Even if there’s a lawsuit against you, you can claim that your company is legal.

• Name protection: When you run a company, you may have planned a lot to name it. What if someone steals that name overnight? With that name, you will lose all the goodwill you have earned over years. You may have handled lots of clients in the past. If you lose your business name, you will end up losing your customers as well. By registering your company under the Ministry of Corporate Affairs, you can save the name to yourself forever. Now you do not need to worry about someone stealing your business name someday!

• Longevity: When you do not register your company, it seems you are not serious about it. If you are a serious businessman, you must enter the market to stay there for long. People will take you seriously only when they see that you have a registration. This will make them believe that you will not vanish one fine morning. Also, their money is invested in a safe place.

• Business banking: When your business is registered and has a business bank account, it will benefit you in many ways. This type of account will help you to stay compliant legally with accounting. It will keep your business more secure. You can always keep a certain amount of credit ready for those bad phases. Also, if you get a credit card in the name of your company, it will save you spending money for small purchases. Also, it will keep your credit score high. It will not only save your business, but also your investors and employees. If you add merchant services to your account, this will offer you some purchase protection and also keep your personal information secured from third party companies.

End note

Registering your company will give you a lot of benefits. You can register your company under any head suitable for it. Make sure to fill the forms accurately and submit everything on time. If you are not comfortable handling all these procedures, you can hire a company to complete the tasks for you.