A company is a separate legal entity registered under the companies act, 2013. It attracts investors and raising money in the long term is easier. The company can enter into contracts and function like a legal entity. The company has a higher credibility because of the regulatory framework over a company. The liability of the promoters and directors is also limited.
What are the Advantages of Registering a Company?
Limited Liability: The liability of the shareholders is limited to the extent of capital invested in a company registered in India.
Startup Friendly: Entrepreneurs often register a limited company when they plan to raise funds by issuing share to Venture Capitalists, and Investors.
Enhanced Reputation: Large Indian businesses are almost always companies. Thus, even small business prefer to register a company to enjoy enhanced reputation.
Directors: Being a director of a limited company is in itself a matter of pride.
Easy Transfer of Ownership: The ownership of a company can be changes by transferring the shares of the company to the purchaser.
Continuity: Being a separate entity, a company continues to exist, even if its ownership changes.
Documents Required for Company Registration
Documents required for Company Registration:
- Pan Card of Proposed Directors and shareholders
- Identity proof of proposed directors and shareholders – Passport, Election Card or Voter Identity Card, Ration Card, Driving License, Electricity Bill, Telephone Bill, Aadhaar Card
- Residential Proof of Proposed Directors – Bank Statements, Electricity Bill, Telephone Bill, Mobile Bill
- Registered office proof – Rent agreement, registered document of title.
- Company Name approval process
- DIN Number for proposed directors