With country borders disappearing and the world turning into a single market, it has become necessary for every business entity to secure its name and fame for the future. How do you do that? By registering your company!
The era of 5G is here. The era of startups is here. Everything today is changing rapidly. From the way we shop, to the way we conduct our business. And yet, every day there is a new change and a new challenge. In such a dynamic world, wouldn’t you want to establish your business as an everlasting entity and make up its own space and build its own name in the market? Why company registration is mandatory?
What is a Registered Company?
Registration means bringing a firm into legal existence. An organisation that has been created and registered as a ‘company or corporation’ with the relevant statutory authority of the nation following the corporate and securities law of that nation is known as a registered company. It is the procedure for new company registration of any organisation with appropriate authority, in compliance with the corporate laws of the country. An unregistered company is any firm that operates without registration.
How Does Registering Concern the Future of Your Company?
It Secures Your Entity
You might have an unregistered company running successfully. As competitiveness increases, there will come a time when innovativeness crashes, frauds may increase, and someone might take over the name of your business or your customers. Since your company isn’t registered, anyone can run an entity under the same name as yours. Benefiting from your entity’s well-earned name, they might sell their products/services and snatch away all your great customers and markets. Not registering your company would pave the way for such fraud. Would you risk losing your long-earned business?
It Saves Your Identity
Do these names ring a bell for Tata, Reliance, Adani, and Airtel? These are Indian companies that are so popular that they are recognised by their company names rather than brand names. Now, how did that happen? Customers showed faith in these lawfully registered companies. They believed in the credibility of these companies. It gets easy for registered companies to grab opportunities and markets as people believe in these entities because the law acknowledges their presence. So if you want to expand your business to every corner of the country, or the world, make sure you register it.
It Generates Capital
Let’s say someday, you want to expand your business, especially when the growth in competition squeezes the markets.
Or as a sense of uncertainty looms over the world as digitization kicks in with full force. Now that everything is going online, most businesses have to move online too. No matter if you own a manufacturing business, or you are a seller, sooner or later, you might want to enter the digital world to beat the competition.
You would need funds to digitize or expand your business. You would reach out to banks or investors. But most investors and banks prioritize legitimate companies. They want to invest in companies that are legally guarded.
To acquire that new technology or spread your company’s reach, you might want to register your entity.
Mandatory Registration Requirement
An association or partnership company with more than a hundred folks for any enterprise ought to be registered as a company. As in step with Section 464(1) of the Companies Act, 2013, no affiliation or partnership together with greater than a hundred folks will be shaped for the motive of sporting on any enterprise that has for its gadgets the purchase of benefit with the aid of using the affiliation or partnership or with the aid of using the man or woman contributors thereof, until it’s miles registered as a company.
Have You Not Decided on Registering Your Company Yet?
Your company name and position in the market are reserved when you register it. You must turn your company into a legal entity so that it has the ability to sue anyone who commits fraud in light of the country’s expanding competitiveness.
With things moving online, now you can even register your company online. Experts at Vakilsearch will guide you through every legal aspect of registering it. All you have to do is just get in touch with Vakilsearch.
Also Read,
