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Benefits Of Registering A Company In India A company is a business registration type that is regulated by the Ministry of Corporate Affairs. If you are planning to form your business or you have been operating as a sole proprietorship or partnership firm. You will be wonder after knowing the benefits of online company registration in India. Many people thinking that the 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 utilizing your Company Registration in the market, then 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 LiabilityMaybe you have heard or read about the separate legal entity features of Company Registration in India. But you know what exactly it means and how this feature works for you. I will tell you here. If you register a private limited company registration process, it has a feature of a separate legal entity. It means the act done by the name of the company will not make liable you personally until there is a malafide intention.
For example-
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From Legalpillers if the company took a loan from the market or any third party and committed a default in payment. It will not create personal liability for you if you are a director or member in the company. However, if there is a bad intention behind the curtain, in such a case separate legal entity features will not work.
Startup India RegistrationCompanies registered with the Ministry of Corporate Affairs are eligible for participating in the Startup India initiative which is called DIPP Registration or DPIIT Registration also. Under this scheme, the government is providing tremendous support to start-ups. Such as funding, waiver of IPR filing fees, incubators support, investors support, B-B Support, free technical support, free mentorship by big Corporate. The major attraction of this scheme is Tax Exemption. If your start-up is recognized by DIPP and eligible for taxation benefits and got approval for the same. In such cases, your company does not need to pay for a certain period of time as prescribed under this scheme. However, this exemption is subject to certain conditions also.
Easy Loan ProcessingAs compared to a sole proprietorship, partnership, etc., a Private Limited Company considers as a better option due to its registration with the Ministry of Corporate Affairs. New Company Registration provides better credibility in the market and creates an impact in customers minds that this company is well established because of its Private Limited status. Company Registration provides a reliable business structure so that they can rely on that th9is business is registered with a central authority, hence not doing their business fraudulently. Bank can easily trust on private limited companies because they know that a company can only register after due verification of documentation. Various banks or other private or nonprivate lenders only prefer Companies registered under the Companies Act, 2013 for lending their money.
Easy investor approachIf you have done Online Company Registration, it means you have one step near your investment approach. In Company Registration (Private Limited) it is easy to get funding (of course if you attracted any investor). The legal structure of your company makes it convenient to receive investment from a person. In a 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 the exit from the 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 a person who is interested for investment in your company.
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From Legalpillers Lower Tax Liabilityin the case of Private Limited Company, there is lower tax burden as compared to non-MCA registered entities such as sole proprietorship, partnership firms Registration, Ghumasta registration, etc. in sole trader your tax slab will be like individual taxpayer but not the same in company incorporation. According to the Income Tax Act, 1961 there are various provisions under you that can claim various expenses, allowances for the purpose of tax deductions. However, in a 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 the marketOnline Company Registration establishes a better reputation for your business in the market because of its better-known impact. The company registration process allows you to set a mark in about your services or products among your customers and market space. It helps in the creation of better goodwill for your company. Which leads in the building of your intangible assets.
Unlimited Life of Company Registration – Online Company Registration is not for a few years. It lasts for an infinite subject to conditions that you are maintaining requisite criteria as prescribed under the 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 exampleYou register a company and become a member and director in the company and doing all requisite compliances. After few time you left the company and some other person join it and maintaining its compliances. In such a case only the director or member will change not the company’s existence.
Less Paperwork in Online Company RegistrationThe Online Company Registration process requires fewer paper works. You just need to provide some basic id address proof documentation of members, directors of the 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
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NOC or Rental agreement of Registered Office Less cost of registrationThe government has waived off stamped duty capital contributions made by the shareholders of the company. Due to which the cost of registration has reduced. Now online Company Registration is not only an easy process but also budget-friendly. The 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 a 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 info@legalPillers.com.
Source https://legalpillers.doodlekit.com/blog/entry/10622445/benefits-ofregistering-a-company-in-india
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