Registered companies are seen as symbols of trust.

Business acumen and finance are the two very necessary conditions to start a business. However, they are not sufficient. Authenticating the business venture is as important as sweating out in planning and executing. This one sticky area where newbies find it difficult to navigate around. This process of authentication is achieved by registering the company with the Government according to the provisions of the Companies Act 2013. In India, this process is also known as the incorporation of a company or the formation of a business. With registration, your business becomes a distinguishing entity and gives it a legal existence.

Types of Registered Companies.

 A company can be registered as one among many types as below, depending on the nature of investment and the type of partners holding the capital shares.        


Name of Company & cost for Registration

Sole Proprietorship

Partnership Firm

One Person Company

Limited Liability Partnership

Private Limited Company

Public Limited Company

Benefits of registering a company

Though one can start a business and avoid the pain of going through lengthy procedures, it is better advised to register the business entity as it is beneficial for the company and its legacy in long term. Registration provides enough legal protection, enables a business entity to operate effectively and comply with Indian law. Unlike unregistered companies, we can reduce personal liability ie., the entrepreneur can take risks without fear of losing personal assets or savings. As we consider a registered company a separate legal entity, it is pretty much easy to exit. Apart from the security one gets, registration gives the company the credentials for borrowing money in times of need. Registered companies are seen as symbols of trust. So, building the brand image gets easy with registration.

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