There are more than 1 million active companies in India but it doesn’t reflect the actual number of businesses in the country. You see, many locals run a venture without registration- as per stats, there are more than 42.50 million small businesses in the country.
Many people, especially sole company owners run a company without registration. This can be convenient given that registration takes some time, however, may put the owner in legal risks and prevents them from availing of various incentives the government of India has been giving for companies.
Well, even if business registration India is not a trend for various small ventures, we look at the benefits of registering a company:
One Person Company is Now Available
For a single business owner, a one-person company is now available in India. In simple words, a one-person company is a limited company with a single share that is bought by the director. It gives the company a separate legal identity, and at the same time, saves the personal funds of the owner.
You go for a one-person company if you own a business individually and want to run it as a proper corporate body.
Other benefits include easy transferability of shares, and legal successions even if the person currently running the firm wants to stop. The company will also benefit from the government incentives and can easily convert to a Limited Liability Company upon need.
Note: NRNs and Foreign investors can only register a company if it is a private limited company. Depending on the sector, they may need an Indian partner.
A company can acquire and own a property in its name. When a company owns the estate, a shareholder can’t claim the property. It brings a degree of fairness in especially a firm that is run by partners.
Registering is Easy
Even if you don’t have a lot of ideas about registration, you don’t have to worry because there are many India company incorporation services like 3E Accounting India. They make the incorporation process a piece of cake- all you need to do is tell them you need a company and give them the required details. They will do the registration for you.