What is Business Registration ​

Choosing the right business structure is as important as picking the industry of the respective business because of the long-term implications entailed in the process. Business structure defines the footing of an enterprise and as a founder, you need to choose a business structure that provides you with the right balance of legal rights and protection. Considering the striving competitive environment where one needs to focus all the energy and concentration on the core activities of the business, the entrepreneurs should outsource the activities related to legal and accounting compliances to the professionals who are versed with the process. They will help you do a careful analysis of your expectations from the prospective business and inputs that are required. Every business structure comes with its pros and cons and one needs to consult the specialists for a smooth business registration process.

For every business, different compliances need to be accomplished. Like, a sole proprietor has to file only an income tax return while a company needs to file annual returns with the registrar of companies along with income tax return. An entrepreneur must be clear in his head about the legal compliances he is ready to deal with while the business registration process goes on. And, the process of company registration including private limited company registration can be way too tedious than expected. One should have a deep process knowledge for a company registration which is full of legal procedures. For a complete company registration process, you are going to need the signature of a CA or CS anyways. So, why to lose precious time surfing via websites and collecting the legit documents when the same work can be done efficiently and effectively by us with you focusing on the core business?

Factors to consider for Business Registration​

 When you do business registration as Private Limited Company registration or Limited Liability partnership registration or One Person Company registration, you are a different entity from your company which provides you legal liability protection. Getting your business registered will assist you by not being held personally liable for certain accidents and other liabilities i.e. you will not be personally responsible for the liabilities of the business which means you can take risks without the fear of losing everything. But in case you set-up business registration as sole proprietor or partnership firm then you personal wealth can be used to pay of the liabilities of your business

Given business registration as Limited Liability Company registration or Private Limited Company registration or One Person Company registration has limited liability and this protection comes at some cost. Limited Liability partnership (LLP) and One Person Company (OPC) registration has lower compliance cost as compared to Private Limited company registration. compliance cost for sole proprietor or partnership firm is minimal but has unlimited liability. Private Ltd Companies are taxed at a rate of 22% with a surcharge of 10% and cess of 4% making the effective tax rate as 25.17% which is lower than LLP registration which is taxed at 30%.

Private Limited Company registration or Limited Liability Company registration or One Person Company registration has better brand image as compared to sole proprietor or partnership firms Generally, large business firms prefer to deal with companies instead of sole proprietor firms. There might be a requirement of tender or job work, which can be applied only by the company.

All financial institutions prefer to lend money to any company or LLP registration instead of proprietary firms. The features of transparency and perpetual succession of the company/LLP give it benefits over any other business form. The Private Limited Company registration or Limited Liability Company registration or One Person Company registration has better governance, which provides more comfort to all the financial institutions.

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