There are many beneficial reasons why it is necessary to do Company registration and the main reason is to avoid the risk of personal assets and to protect one’s own interest. The registration process helps to safeguard the personal assets and not face bankruptcy in case of business crisis. Secondly, it is stress-free to appeal for VC funding as VCs are guaranteed of security if the company is registered.The main benefit that can be gained if the company is registered is that a limited company can transfer their shares easily to another company.
Why Opt for Private Limited Company Registration?
Tax benefits are provided to the entrepreneur typically when they are in partnerships with a Private Limited Company Registration. It is obligatory that your business be registered if the idea of business is good enough and it can be converted into profitable business. In order not to be saddled with liabilities it is very important that preventive measures are taken.
There are different company structures available and depending on the size and the type of business your company can get registered as a Partnership firm, Sole Proprietorship. OPC, Public Limited Company, Private Limited Company, and Limited Liability Partnership. No registration is required for the Sole Proprietorship as the company is operated and owned by one individual.
Advantage of Registering
It is very easy to register for Pvt Ltd Company Registration, and it is the most prevalent entity amid large, medium and small businesses. Registering with the private limited company is very advantageous and for that, the company should have a minimum of 2 directors and two shareholders for registration. It provides limited liability protection to the shareholders and has the ability to raise the equity funds. It is the most recommended business entity and millions of medium sized business makes use of as they are professionally managed.