Before starting any business, it is important to comply with all required legal formalities, in case of failure of compliance with legal formalities you may have to face legal consequences. If you are planning a startup, then you have to comply with all legal formalities so in future there will be no problem arises for you. Most Important Registration for a startup is its incorporation Registration, and it is very important to register your startup because this will give you legal protection and secure your business. Startup Registration is mandatory for your business if you want to make your business as a legal entity and by various laws, it is important to register your business under the Indian laws like Companies law, LLP laws, Partnership Laws, etc. This article talks about the Importance of the Legal Registration for startup, so you will find that why registration is important to document for your business.
Importance of Startup Registration
- If you want to protect your business under the laws, then you have to register your business. For e.g. If you register your business as an LLP then you will get many rights under the LLP laws and registration of an LLP will make your business as a Separate Legal Entity which can sue the third parties and can be sued from other and there will be limited liabilities on the partners, and a partner will not be liable for other partners act. If you register your business as a Company or Partnership Firm then also you will get many rights under the laws, and you will get tax benefits also. Without registration of your startup, you may have to face legal consequences.
- Your startup registration is a very important document for you because without registration certification you may not be able to open a current account on the name of your startup and it is very important for getting a loan from the bank, so you should register your startup.
- A Startup Registration is also important for creating credibility in the Market because nowadays it is very important to register your business, no will trust you in the market if you are not registered under laws.
- A Startup Registration is also important for creating a brand name because if you want to register your startup under the Intellectual Property Laws then Incorporation certificate is primary document for registering your brand name under the Intellectual Property laws, as nowadays it is important to secure a brand name so no one can copy your brand name, and in the case if anyone copy your brand name then you can ask for remedies.
- As above mentioned in the article that Registration will decrease your liability in the startup. You can limit your liability in your startup by Registration of your Startup. It will avoid you in your startup as after registration it becomes a separate legal entity.
- Registration is also important for minimizing the Personal Tax Liability.
- Registration is also important for making an agreement with the 3rd parties because without this you may not be able to make agreement with a 3rd party on behalf of your startup.
- Registration of your business will make your business Perpetual Succession, so your business will never die if there is the death of an owner or any partners.
- Registration is also important for getting Telephone Connection and Electricity Connection as you may not able to get this connection without Registration of your Business.
- Your Startup Online Company Registration is also mandatory for getting benefits from the government Schemes, if you want to get benefits from Udyog Aadhar then you have first to register your Startup, and then you become able to get benefits from Udyog Aadhar. After obtaining Udyog Aadhar, you will get a loan on Low-interest rates, and you will get a subsidy from the Government.
- Your Startup Registration is also important for registering your business with GST. During GST Registration you have to produce your Incorporation Certificate. As you now GST is an important document and you have to mention your GST identification number on your Invoice and have to file the GST Return Filing .
If you are thinking of starting a business then you should register your business, as you can see above that why it is important, why you should register your business. Registration is mandatory for obtaining many benefits from the laws, and it will give you protection under the laws, in the case of failure of registration you may have to face many problems, so you should register your business.