startup registrations

Top 5 Reasons Why You Should Register Your Company

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How can one own a business which does not legally exist, that’s where this article will help you as it answers the most vital question: Why you should register your Company. In the initial stage entrepreneurs focus on the development of their unique product/ service that they intend to offer, but market research has proven that registering the Company is a necessity and not an option as it is the determining factor in the success of any business. It is advisable to register your Company keeping in mind the following factors: 

  • Establish a presence:

In a competitive market like India, establishing a Company’s presence can be a big challenge. Due to an increased number of startup registrations, it is very important to register your Company. Company registration gives a unique identity to the business. Once a new company registration is done no other company can be registered with the same name all over India, hence it gives establishes a presence and gives a unique identity to the business. New company registration also adds to the credibility of the Company.

  • Banking operations:

To operate any business irrespective of its scale of operations one requires a current account to separate personal and business finances. To open the bank account registration documents, certificates, etc. need to be attached with the application which are further cross verified by the bank. Similarly for getting loans the banks have a lengthy documentation procedure which can only be fulfilled if the company is registered and compliant. For a registered Company there is an increased access to funding sources as it is highly preferred by investors.

Also Read this blog: What is a Sec 8 company under Companies Act, 2013 with basic key points

  •  Limited Liability:

The biggest reason why people opt for company incorporation is limited liability. As the company is treated as a separate legal entity, the Company protects its owners from personal liability. This means that if the company is sued, or incurs penalties, debt its members are not liable to satisfy the claims with their personal assets. The owners/ shareholders/ promoters are only liable upto the amount invested in the company, therefore the company provides limited liability as it has a separate identity.

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  • Makes you look serious and contract ready:

Once you enter the market with a registered business it adds to the brand building of the new company registration. It also increases the chances of getting contract as the documentation and registration is complete, and enables discounts in case of suppliers, as everyone prefers to do business with a registered Company. Even for applying for tenders one needs to have a registered entity whether its government tenders or commercial tenders.


  • Perpetual Succession:

Any change in the ownership of the Company does not affect the status of the Company. The Company goes on irrespective of its owners/ promoters/ shareholders. Even death, insolvency, insanity of any member of the Company does not affect its continuity. New Company registration is an asset for the owners, it can be passed down, sold, transferred for running the business.

Company registration is a big step and brings with it a lot of compliances, and filing obligations but at the same time it offers huge benefits which are incomparable.

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