A company is a business registration type which is regulated by Ministry of Corporate Affairs. If you are planning to form your business or you have been operating as sole proprietorship or partnership firm. You will be wonder after knowing the benefits of Company Registration. Many of people thinking that registration and operation of a company is not too easy and required too much costing also. Here the answer is NO.
If you are maintaining all the requisite criteria and utilising your Company Registration in market, than it will reward you much more which you have invested in it. Here i am disclosing some amazing benefits of New Company Registration which usually business owners don’t know.
No Personal Liability- May be you have heard or read about separate legal entity feature of Company Registration in India. But you know what exact it means and how this feature works for you. I will tell you here. If you register a Private Limited Company, it has a feature of separate legal entity. It means the act done by the name of company will not make liable you personally until there is a malafide intention.
For example- if company took a loan from market or any third party and committed a default in payment. It will not create a personal liability on you if you are director or member in company. However if there is a bad intention behind the curtain, in such case separate legal entity feature will not work.
Startup India Registration- Companies registered with Ministry of Corporate Affairs is eligible for participating in Startup India initiative which is called as DIPP Registration or DPIIT Registration also. Under this scheme government is providing tremendous support to start-ups. Such as funding, waiver of IPR filing fees, incubators support, investors support, B-B Support, free technology support, free mentorship by big Corporate. Major attraction of this scheme is Tax Exemption.
If your start-up is recognised by DIPP and eligible for taxation benefits and got approval for same. In such cases your company do not need to pay for certain period of time as prescribed under this scheme. However this exemption is subject to certain conditions also.
Easy Loan Processing- As compare to sole proprietorship, partnership, etc., a Private Limited Company consider as better option due to its registration with Ministry of Corporate Affairs. New Company Registration provides a better credibility in market and creates an impact in customers mind that this company is well established because of its Private Limited status. Company Registration provides a reliable business structure so that they can rely that th9is business is registered with central authority, hence not doing their business fraudulently.
Bank can easily trust on private limited company because they know that a company can only register after due verification of documentation. Various banks or other private or non private lenders only prefer to Companies registered under Companies Act, 2013 for lending their money.
Easy investor approach- If you have done Online Company Registration, it means you have one step near of your investment approach. In Company Registration (Private Limited) it is easy to get funding (of course if you attracted any investor). Legal structure of your company makes it convenient to receive investment from a person. In private limited company if a person invested in your company you can add him as director or member or both in your company. After that if you or that concerned person want to take exit from company, it is also easy for both persons.
Company registration provides so many benefits in terms of funding, investments, loans, guarantee, etc,. due to its flexible features. Private Equity can be allotted to person who is interested for investment in your company.
Lower Tax Liability- in case of Private Limited Company there is lower tax burden as compare to non MCA registered entity such as sole proprietorship, partnership firms, Ghumasta registration, etc. in sole trader your tax slab will be like individual tax payer but not same in company incorporation. According to Income Tax Act, 1961 there are various provisions under you can claim various expenses, allowances for the purpose of tax deductions. However in Private Limited Company you just need to pay 25% taxes of your profit. However there are some provisions also prescribed under the law related to tax rates.
Better credibility in market- Online Company Registration establishes better reputation of your business in market because of its better known impact. Company registration process allows you to set a mark in about your services or products among your customers and market space. It helps in creation of better goodwill of your company. Which leads in building of your intangible assets.
Unlimited Life of Company Registration – Online Company Registration is not for few years. It last for infinite subject to conditions that you are maintaining requisite criteria as prescribed under Companies Act, 2013 or other act or law in force. A company cannot dissolve if a member or director leaves the company. It has perpetual succession. It can only dissolve according to the provisions of law.
For example- You register a company and become member and director in company and doing all requisite compliances. After few time you left company and some other person join it and maintaining its compliances. In such case only director or member will change not company’s existence.
Less Paper work in Online Company Registration- Online Company Registration process requires less paper works. You just need to provide some basic id address proof documentation of members, directors of Company such as-
- Copy of Adhaar Card/ PAN/ Driving License/ Voter ID/ Passport
- Bank Statements
- Updated Electricity Bill of Registered office
- Email Id and contact numbers of members of directors
- NOC or Rental agreement of Registered Office
Less cost of registration- Government has waived off stamped duty capital contribution made by the shareholders of company. Due to which the cost of registration has reduced. Now online Company Registration company registration is not only a easy process but also budget friendly. Government are providing various additional registration certificates with Private Limited Company such as PAN, TAN of Company, PF & ESI Registration, MOA, AOA, DIN, DSC, COI, Name approval, Bank Account opening, etc.
Conclusion – Here we can say that a company registration process has various benefits. If you want to start your business apart from sole proprietorship, Partnership Online Company Registration will help you in growing your business. Here you have found some most unique benefits of new company registration. If you have any queries don’t hesitate to call our CA Service section at 9625279785 – 9267941961 or you may write to LegalPillers at [email protected].