Register Company In India

7 Reasons Why You Must Register Your Company In India

PUBLISHED ON: Mar 16 2023
PUBLISHED IN: Legal Guides

When considering starting a small company in India, registering a company online seems like a good investment and a big step into the business world. However, once a company is established, its owners can access numerous advantages.

The benefits could take many different forms. As a result, let's discuss some of the major benefits of small business registration in India. 

What Does Company Registration Online Means? 

The process of business registration in India is one of the important steps while starting a business. The basic first step in legally establishing your business is company registration online. It indicates that you will have the legal authority to conduct business once you file as a corporation. Therefore, it is a crucial stage for startups today.

Beforehand, small business registration was a tedious and expensive technique for startup makers. However, with the web's development, it has become helpful and easy for business people. When it comes to company registration online, which grants your business legal rights, the size of your company does not matter. By registering your startup, you will receive numerous benefits.


The Advantages of Business Registration In India

Small businesses require less capital to run than large corporations. Due to their smaller size, these businesses can easily adapt to shifting business structures and environments. Private limited companies in India expand versatility and adaptability. Businesses typically outsource work to larger companies. Small businesses typically manufacture raw materials and other semi-finished items for large companies.

The advantages of small business registration in India are as follows:

1. Limitation of Liability Coverage:

One of its biggest benefits is that members of a private limited company, limited liability partnership (LLP), or one-person company can obtain limited liability protection when they register their business online. Therefore, the company's promoters would not be personally liable for the business's debts. In addition, since running a business always involves the possibility of losing money, limited liability insurance guarantees that the entrepreneur can take risks without fear of losing everything.

2. The Funding of the Company:

When starting a small business, debt or equity financing is a crucial requirement. However, unregistered business entities like sole proprietorships and partnership firms cannot be able to raise capital through equity funding. Additionally, since most financial institutions prefer to lend to registered businesses, it would be a mistake to incorporate a partnership or sole proprietorship company with plans to raise equity funding. Therefore, if a company intends to raise equity or debt capital in its name, it strongly recommends that it be registered.

3. Making a bank deposit:

It takes a long time to open a bank account for a proprietorship or partnership company because the business entity lacks legal proof of existence. Therefore, a proprietorship or unregistered partnership must demonstrate its existence through various tax registrations in the company's name to open a bank account. In contrast, a limited liability partnership (LLP) or company receives a certificate of incorporation and memorandum of association from the Ministry of Corporate Affairs to demonstrate its existence. Therefore, opening a bank account is difficult without submitting a copy of the memorandum of association and certificate of incorporation.

4. Separate legal entity:

When you start up a small business and register it, you establish a separate legal entity. Compared to all unregistered business entities in India, a company is a separate legal entity. As you incorporate it with the assistance of your business consultants, you give it a new name. It's similar to giving birth in a business setting. This individual is authorized to possess a PAN card and a bank account.

5. Helps in expansion:

A business that has been properly registered can better control its inflows and outflows as it keeps its books and records more effectively. A business can use it to keep a close eye on its funds, which can be used to grow the business. Over time, it becomes easier for a small business to increase its product and service offerings.

6. Tax relief:

The government is developing new strategies to assist small businesses. For example, numerous initiatives, such as Startup India, have been launched to encourage small business owners to enter the formal business world. In addition, the new businesses get a few tax exemptions and only a few facilities for compliance. Consequently, the promoter can inject more capital into the company without incurring excessive tax liability.

7. Meeting Customer Needs:

Most enormous organizations with provider choice models like to manage a registered business firm instead of an unregistered one. Consequently, a small business registration can make it eligible to satisfy buyer requirements, participate in tenders, and satisfy customer or buyer requirements.


The legal firms providing services for company registration online have enabled business owners to register a business entity smoothly and easily. We offer the best services for business registration in India and can register your business quickly. Visit our website for more information.

Leave a comment
Book a quick call and avail free
offers with a business setup.