The process of getting a private company register, no doubt, is a matter of choice. But still, getting the same registered under the law facilitates the benefits as per taxation and credibility of business expansion in addition to the quick sanction of business loans. Moreover, as per the Audit service agency in Pune, different companies can be registered as Pvt. Ltd. under the heads of a sole proprietorship or limited liability, etc. As per the companies act registered under the minister of corporate affairs, registering a business as a private limited company or firm helps in seeking professional guidance with greater flexibility and limited liability.
Five prominent reasons why registering a private limited company is worth the value are given as under.
- Transferring ownership at some point in time is easy
If there is a need to transfer the ownership of the business at some point in time, then for unregistered business firms, the procedure becomes complex and hectic. While the transfer of shares and related business documents is easy for the registered entities that come under the head of LLP or Pvt. Ltd. Transferring ownership of business and assets is easy in the case of registered entities and firms, whereas the sole proprietors even find a tough to transfer the ownership at the time of need.
- Ease of opening firm’s or entity’s bank accounts
Under a registered private limited company opening commercial bank accounts is easy and forms an important asset for working requirements business. The existence of a current bank account forms the basis of legal proof of a company’s existence, and with respect to opening the same for a registered company; it is easy to issue the incorporation certificate and the memorandum of association.
- Protection under limited liability clause
Under the clause of limited liability, the best feature of getting a private limited company register is the protection of personal property. Under this clause, in case any business form curse losses in the financial year and is unable to pay off debts, then the personal property of the owner is not attached for reimbursement of the same. The debtors can claim their money only through the disposal of the property belonging to the business or the firm. That is why registering a private limited company proves to be beneficial and worth the value.
- Security of funds
As the business boobs towards growth and expansion, the efforts to secure investment and seek the same cannot be looked over. Funds could be attracted in the form of equity or debt. The incorporated company has the facility of fund processing and attracting potential investors to gain capital investment in the company. The trust for dinners offer Register Company helps to create a sense of trust among banks and other financial institutions in comparison to the unregistered business firms.
- Brand recognition and other miscellaneous benefits
As per the audit companies in India, brand recognition and taxes levied on the registered private businesses are imposed as per the GST code in the context of input tax credit and GST search. The registered private forms qualify to get a credit of input GST calculator in accordance with the delivery and purchase of goods in the form of raw material or services using the documents such as tax invoices, entry bills, debit notes, etc.