Why Business Registration is Important?

Introduction

If you are planning a startup then you should register it. We recommend you to use this service to register your company. Registration of business is very important, it will give you many benefits, and it will protect your business and secure your rights against the third party and in the case of failure of registration you may have to face legal consequences. Registration of business is a primary thing for any business during incorporation. Business Registration in India is not that difficult because there are types of form of business available you can register your business under Company law, LLP laws, or Partnership Laws. This article talks about the importance of business registration.

Remember it’s just as easy to register and open a business, however, you also need to be careful about insolvencies and bankruptcies. If the business is not doing well and it is unable to pay its debts then it can be declared insolvent or bankrupt. This will have a very bad effect on the company and all the shareholders will lose their investment. So, it is important to take the help of an insolvency practitioner to save your company from such situations.

Accountants that specialize in insolvency are called turnaround accountants or corporate recovery accountants. They have expertise in negotiating with creditors and they also help to put together a plan so the organization can continue to operate. They are also specialized in tax and can help to minimize the tax liability of the organization. CFS have more information and it can be found at https://www.cfsinsolvencypractitioners.co.uk/professional-support-services/.

Why Business Registration is Important

Registration of business will give you protection under the laws. For e.g., if you register your business under company laws or under LLP laws, then it will protect your business and you also. As you know that company and LLP are the separate legal entity so there is limited liability upon you and after registration, your company or LLP can sue or can be sue as it is the separate legal entity. In the case of failure of registration, you may have to face some legal consequences.

• Business Registration is also important for getting a loan from the bank because it will be difficult for the unregistered company to get a loan from the bank.
• It is important for obtaining benefits from the government schemes; you may have to face problems in the case of failure of registration. For e.g., if you want to register your business under Udyog Aadhar then you have to mention your registration number except if you are running a sole Proprietorship, if you want to get benefits from the Udyog Aadhar scheme then you have to register your business.
• It is important for creating a brand name because nowadays it is very important for any business to obtain a brand name, so it is important for creating a brand name. A brand name is a valuable asset of any business so before getting a brand name you have to register your business. To do so, you’ll need to register a trademark also.
• If you want to open a current account on behalf of your business then you have to register your business, without registration, it will be difficult for you to open a current account on behalf of your business.
• If you are running a partnership firm then business registration is important for you because without registration you may be not able to file a suit against the third party or against the other partners because without registration you may be not able to prove that you are running a partnership firm.
• If you are running a sole proprietorship firm then business registration will help you to prove your business identity, there are formal laws on sole proprietorship but if you want to register your business then you can register it with the Udyog Aadhar, PAN card, GST and Trademark.
• This will help you to create valid invoices; this will help you to crease your sell because a customer will trust you more if your business registered under the laws.
• This will help you under the tax laws, you may be able to get deduction under the various tax laws, without registration it will not possible for you to obtain such deduction under the tax laws. For e.g., if you are running a registered LLP then you will become able to get deduction under the tax laws.
• This is also important for obtaining GSTIN, it is your duty to register your business under the GST laws, it is mandatory for those whose turnover is more than 20 lakh rupees or in some states it is 10 lakh, in the case of failure of GST registration you may have to face legal consequences. How to File GST Return application online on the official website of the GST.
• This is also important during the hiring of employees because no one wants to become an employee of the unregistered company.
• Business registration is also important for finding investors, after registration of business investors will easily trust you, it will be difficult to find investors for unregistered business.
• Business registration will increase your credibility in the market and customer will trust you more because they know that the company is registered so there is less chance of fraud will be made.

Conclusion

If you are planning a startup then you should register your business as you can see above that it is very important to register your business. Business registration in India is simple if you want to incorporate your business as a company or an LLP then you can apply your incorporation form to the Ministry of Corporate Affairs. Nowadays process is simple as the whole process of incorporation is governed online. So if you are planning a startup then you should register your business as it is very important, in the case of failure of registration you may have to face legal consequences.