Incorporating or Registering your business idea is not a bad idea in India as it gives a strong foundation to your business aspirations so that you don’t come crashing down.
Benefits of Business Registration in India
Registering a business has importance everywhere in the world, but it is India where it is more significant. The major benefits of registering a Business in India are as Follows-
- It Gives you Structure- when you register a business in India then you give a proper structure to your business. As without proper structure there is no order in Business and therefore, there is hardly any profit. Without a proper business criteria there is no business conducted properly. Therefore, it is always advisable to register a business for the proper and smooth brunning of your business.
- Separate Entity- It forms a separate entity once you form a separate business. Once you get the certificate of incorporation, you apply for PAN card in the name of the company which is considered as a Valid ID of the company.
- Perpetual Existence- we live in an era of startups, everyone not only wants to make money, they want to establish a legacy. When an entity is registered then it becomes a separate entity. Therefore, if and when the owner of the business dies , the business can continue to exist.
- Registered Business are more trusted- generally a business which is a registered one is trusted more are compared to the unregistered one. We are not saying that unregistered business are worthless, but they are hidden more,less advertised, less marketed and therefore, less trusted. However once you have registered your business
, you are free to reveal yourself and market yourself.
5. Trust then leads to more funds- If you have trust of the people then you would have more trust of the investors and Financial institutions as well. A business cant survivev on the personal assets of its owner, it needs outside funding for expansion, diversification. Being a registered business attracts more investors towards you, who see your business a legitimate one.
6. Limited Liability- Limited liability is probably the most used terms when “Benefits of Business Registration” is the topic. however , people are still fuzzy about its meaning.
A company is a separate legal entity, then is its own person has only has to bear its own losses.
The above statement basically means that if the company goes through any loss on finances, personal finances or assets of the Directors of this company are not affected.
Conclusion
When it comes to the business registration benefits there are any, but what is lacking is the understanding of these benefits. Hope that through this blog we have enlightened you with the understanding of what the benefit actually means. For Registration of Business please contact BIATconsultant.com.