Whenever
you start your own work in the form of any business it is very
important to register it. The registration of any business is very
initial and important step, without registration, your business
cannot start and gets any identity and other market benefits.
Registration gives you a proper structure to run your business idea.
In India, every kind of business can be registered. Basically,
registration means creating a separate identity for your business by
taking certification from applicable regulatory authority as per the
type of company. Different type of business require different
registration, for example, if a person start his business in the form
of private limited company or public limited company then MCA
approval is required, if you are taking GST registration then CBECcertification is required, if anyone wants to register his society or
trust they need to register it with the state government, there are
many other types of registration for business startups. The Company
registration means registering the business with Ministry of Corporate Affairs. By taking MCA approval the owner can operate
his/her business all over India without following the double
registration process. A Company gets it registration in the form of
Certificate which is known as Certificate of Incorporation which
contain 21 digit alpha-numeric identification code in which first
letter starts with alphabet which symbolizes the listed or unlisted
status of the Company next five digit defines the sector to which
company operates its activity now next one is two alphabetic letter
which denotes the state code like for Delhi it is “DL”, for West
Bengal it is “WB” etc. every state having its own state code next
there is again four digit numeric code which represents the year of
registration and the next three alphabets is the type of company i.e.
if company is private limited company then it will be “PTC” or if
public limited then “PLC” for one person company it is “OPC”
for section 8 company “NPL” is the code and the last six digit
are the registration number which is issue by the ROC.
There
are many benefits and advantages to registering a Company and these
are:
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It gives a separate and legal identification to the company
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The liability of the owner get limited as the company is responsible for its all liabilities and dues
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The Company also enjoys the financial services like banking facility, borrowing and lending of funds, etc.
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It gives the Company a market reputation and brand value as well as increase the goodwill and worth of the Company which helps the owner to calculate the value of his business
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It is very easy to transfer any property which is already registered as there is no legal issue arises while transferring any registered property so if the owner wants to transfer his business to any other person it can be easily transferred.
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The banks and financial institutes trust only those persons who are having any legal identity whether that person is an individual or any body corporate. So if any company is having valid registration certificate the banks and financial institutes can grant them funding facility by giving loans or borrowings etc.
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A registered brand is always attracting the customers and builds a healthy relationship with the consumers. A registered brand always creates trust regarding quality and quantity of the product or services in the mind of the consumers.
If
anyone fails to register the company for starting his/her business
then all the above benefits will automatically become the
disadvantages for the owner of the company. An unregistered company
cannot avail the benefits which are issued by the Government from
time to time to promote the startup's projects. Government benefits
like taxation relief, rebate in tax, subsidiaries, etc. People also
avoid such brands which do not have any legal identity and are not
registered anywhere. The owner is always personally liable for any
damages and debts. So to avoid all disadvantages it is better to
register the company before starting any business. You should always
take the consultancy and registration guidance as well as assistance
while registering your own business so there should be no legal
issue. The main hurdle before starting the business is its
registration and to overcome such issue is to take registration with
the help of qualified professionals.
Know More about Company Registration on our Blog.