Incorporating your business is a significant step towards becoming a successful business owner. There are multiple benefits associated with incorporating your company, which is why so many companies are going for company registration. In fact, we have seen a significant rise in figures for registered companies in India over the years. In 2021, the count of registered companies in India was 155,377. In 2022, the count rose to 167,076. If we go back to 2015, this count was 64,395. These figures clearly show that people understand the importance of incorporating their company. So, let’s have a look at some of the benefits of incorporating your company:
- Limited Liability Protection
One of the most crucial benefits to leverage by going for pvt limited company registration is limited liability protection. As per the Company Act, Section 34, the members are solely responsible for the liabilities of the company in case the company gets shut down. However, if your company is incorporated, the members are legally bound to contribute some nominal share held by them along with a few other liabilities.
- Tax Advantages
When you incorporate your company, there are numerous tax benefits available at your disposal. You can spread out the losses over a particular period. You can also deduct operational and startup expenses and employee benefits. Your local and state taxing authorities will offer you incentives from time to time. You also enjoy multiple tax benefits if you have business setups in multiple locations.
- Enhanced Credibility
Your brand’s credibility shouldn’t depend on unreliable online sources and word of mouth. Incorporation can allow you to build the credibility of your brand. This can turn out to be resourceful for branding. You will find no trouble driving potential customers toward your brand. You will also be able to give your business the exact boost it deserves.
- Access to Capital
Incorporating your business makes it easy for you to acquire funds. It gives a sense of legitimacy to your business, opening the door to multiple opportunities to access capital. You can easily apply for a loan for your business. You can also open a bank account and build your line of credit. Even if you plan on expanding your business in the future, you will never have trouble getting the initial investment.
- Perpetual Existence
By incorporating your company, you are authorized to protect your business forever. Yes, your business can shut down, but if that doesn’t happen, it will remain in perpetual existence as it has its entity. This will pave the path for you to build long-term plans for your business. You will also be able to ensure that your business remains operational constantly without re-establishing it repeatedly.
- Transfer of Ownership
With incorporation, it becomes easy for you to pass the ownership of your business. Whether for short-term or long-term goals, your business may need to be passed on to someone else. This can easily be done when your business has an identity. You will also find it easy to pass your business to future generations when you grow old.
- Brand Protection
You are not just protecting your company’s name when you incorporate your business. You are also protecting the overall image of your business from being used in any undesirable way without your consent. Your brand reputation remains intact. You will be able to maintain the brand originally. Incorporation also allows you to protect your brand name, logo, and trademark.
- Personal Privacy
Incorporation creates a distinct boundary between you and your business. If you don’t incorporate your business, you always have the risk of losing your assets. In case your business gets sued, incorporation protects all the personal assets. Even if a lawsuit is filed against you, you can protect your assets from creditors who want to collect their debts from your business.
- Professional Image
Every business needs to build a professional image for themselves, which can be done with company incorporation. Once you incorporate your business, it acquires a professional image. This makes it easier to expand your business further and drive more customers. You will also find it easier to conduct your business venture successfully.
- Employee Benefits
Business incorporation also offers multiple benefits to the employees. Incorporation can provide employees with tax benefits like retirement contributions and health insurance. This can enhance the overall compensation package of the employees. The employees are also able to plan for their financial options. They have the liberty to become shareholders of the companies.
For more details on how you can get the certificate of incorporation for your business, you may contact us, and we will share with you the details.
