Top 5 Reasons Why You Should Register Your Company:
1. Company Registration gives you a unique identity (and protects it too)
There is a certain pride that comes with the identity of your own business.
It’s no longer that big idea you’ve had in your head all these years. It’s now a real thing that legally exists; with its own name and address.
Some people choose their business names on emotional grounds (like their father’s, mother’s, wife’s or child’s name or even their own name). Some other people prefer to choose names that inspire while some other will go with names they want to portray good qualities about the business.
Whatever name you choose, and for whatever reason, is totally up to you.
Once registered with the name you chose for it, you’re legally free to go ahead and design a logo, create business cards and letterheads, and do anything you want with the name.
Can you imagine your business card with an inspiring logo and the name of your business boldly written across it and your name as CEO? That’s truly unique and inspiring.
2. Registering a business protects you from personal liability
This is arguably the biggest reason why many people have to register their business.
Without the legal protection of limited liability, you could lose your business and personal property if something goes wrong.
Read more about ‘ What Limited Liability Means?’ in our blog post:
3. Registering your business makes you look serious and attracts more customers
In today’s modern world, most customers, especially corporate customers, expect a serious and responsible business to be registered.
In fact, most companies will not do business with an unregistered business. In certain cases, it’s against the law for regulatory and tax reasons.
Think about it for a moment: If your business is not registered, how can you issue receipts to customers for products you sell or services delivered?
And who exactly pays for something these days without demanding a receipt? Unless your plan for your business is to become and remain a petty trading business that sells stuff off street corners, you just have to register it to attract more discerning customers.
Nobody says you can’t survive with a business that isn’t registered. The likely outcome is that you may not grow and will probably remain small for a long time.
4. It’s easier to get bank credit and investment from investors when you register a company
For banks, there are basically two categories of loans; Personal and Business Loans. They’re both totally different and one cannot be used to represent the other.
As a result, most banks will gladly lend you money to buy a new car or house but none will give you money to fund a business that isn’t registered. To qualify for a business loan, the Number 1 and non-negotiable requirement is that your business must be registered. Period!
For investors, it’s the same thing. Investors are interested in giving you money for a share of your business, and not to finance your personal lifestyle.
If there’s no registered business, what exactly will you be giving them a share of?
Investors want to know that your business is organized, exists legally and is separate from your personal life and finances.
No investor would take you seriously if you’re asking for investment but you don’t already have your business registered. To them, it’s a sign of unseriousness and a lack of professionalism. You don’t want anybody to have that impression of you.
5. Company Registration is important for continuity sake
Tata Group, Reliance Industries, Aditya Birla Group and Infosys. Do these names reminds you of something?
Of course, they do.
These names are big multi-billion dollar businesses that have existed for decades. In fact, most of the people who formed these companies have been dead for a long time.
Nevertheless, these businesses, which were quite small when they started many years ago, remain very big and successful today.
It’s called continuity; human beings live and die but businesses have the ability to last forever as they are transferred from one generation to another.
A registered business is an asset (like a house, car and other properties) that can be passed down (as an inheritance) or sold by its owners to a new generation of people who can continue to own and run the business.
Registering your business will help you achieve your dreams of continuity.
We help start-up with Private Limited Registration, One Person Company Registration, and LLP Registrations. If you have any doubts or queries, you can connect with us. We will get you going with your venture immediately.
Why Register a Company in Mumbai?
- Mumbai is often called the ‘city of dreams’ as it is the land of opportunities.
- Mumbai is not only the commercial capital of India but also one of world’s top 10 centers of commerce in terms of global financial flow. Mumbai accounts for slightly more than 6.16% of India’s economy.
- Mumbai, Maharashtra is the entertainment, fashion and commercial center of India, with the Mumbai Metropolitan Region economy more than $400 billion (as of 2017).
- Headquarters of a number of Indian financial institutions such as the Bombay Stock Exchange, Reserve Bank of India, National Stock Exchange, the Mint, are located in Mumbai.
- Mumbai was ranked among the fastest cities in India for business startup since 2009. In the recent years, Mumbai is experiencing rapid growth.
- Several major Indian companies are headquartered in Mumbai. The three largest Private Limited Companies in India, Tata Group, Reliance Industries, and Aditya Birla Group, are based in Mumbai.
You Can Visit Our Offices in Mumbai : https://hgcorporates.com/contact-us