Business registration is the main step in establishing your business. Business registration can be done by both online and offline modes in India through the MCA (Ministry of Corporate Affairs) portal. There are certain benefits of business registration.
A business owner can raise funds easily from banks, NBFCs, and other online lenders when the business is registered.
Reasons registration helps in faster loan approvals:
Minimizes personal liability
Every business owner is liable to pay the debts and the losses but if you are in a partnership with anyone or a sole proprietor, the company registration makes you less liable to the debts and losses. After registration of the company in Delhi and Mumbai, the company becomes a separate legal entity, this protects assets from business loss if any.
Decreases tax liability
After registering your business, the business becomes a separate entity and a separate taxpayer as well. This will allow the owner to apply for subsidies and tax rebated under various programs by the government like Startup India and Skill India.
Establishes your brand
By registering your small business, you will be able to establish a brand image of your business among the target, customers, and suppliers. Since the business agreement or contract would be between the companies, this will strengthen your business’s position when dealing with a third party.
Defines ownership
business registration helps in defining the role of different members of the company and also their shares in the business. This will help in resolving any conflicts that may arise in the future.
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