Although company registration seems like a cumbersome requirement, it lends various benefits to the entities. Unregistered businesses often have trouble carrying out their affairs because they lack much-needed legal stability and transparency. Therefore, registering a business should be the upfront priority for any emerging or new business. Let’s take a look at the benefits of company registration in Noida.
List of Benefits of Company Registration in Noida
The following are the top-of-the-line benefits of company registration in Noida:
1. Legal Entity: A registered company has a separate legal identity and hence it is recognized as a legal entity. Its legal coverage is isolated from what is offered to any director and shareholder. Being a legal establishment, an entity is awarded a host of privileges namely the right to sue, independent legal existence, the right to purchase the property in its name, and so on.
2. Perpetual Existence: Regardless of what happens to the members or other key officials, the business will continue to run. Nothing will halt the company’s operations until and unless board members collectively decide to shut it down. It is one of the prominent benefits of company registration in Noida. Even in the worst-case scenario or financial collapse, the company stays in existence on paper so there is no need to reinvent the wheel when a company tries to revive itself. The companies that fall under the Companies Act, 2013 adhere to this concept, making them stand out structure among the rest.
3. Better Control and Transparency: The Companies Act, 2013 provides for an explicit organizational hierarchy that ensures better control and transparency. Key decisions are taken by the elected board members and Directors.
There is no prejudice relating to who can be the new director of the company as such subject matters are handled by the collective decision of the top management. It is at the discretion of the board members whether or not to expand or run the company. Coming to finances, registered companies need to abide by mandatory auditing requirements. This way investors have more trust in the company, encouraging them to make the investment.
4. Limited Liability: It is one of the most valuable benefits of company registration in Noida or anywhere else. Limited liability means that the shareholders are only liable to cater to the company’s losses to the amount equivalent to their investment threshold. This ensures peace of mind for the members who are skeptical about the company’s future. It is one of the valuable benefits of company registration in Noida.
5. Scope of Expansion: Entities that fall under the Companies Act 2013[1] generally have better potential to expand their footprint. It is because their structure is robust enough to cater to ever-changing legalities that come with expansion.
6. Transferability of Shares: Structures like private limited companies and public limited companies support the notion of the transferability of shares. This lets the company’s members engage in the shares trading without having to comply with endless compliances. The only legality members need to follow is to share the signed copy of the share transfer and share certificate with the party in question to keep things transparent and legal.
7. Scope of Property Ownership: A company has the right to purchase any property in its name. It means nobody else can claim its property, not even the in-house members. The only thing that shareholders can claim in his favor is his investment amount. Neither the shareholders have the right to claim the company’s profit nor can they reap the profit earned by the company unless it is mentioned in the AoA.
8. Access to Legal Rights: Just like a legal person, the registered company also has the right to sue any party allegedly involved in hindering its interest in any way. Registered companies have a vast legal coverage that helps them cope with legal nuisances of any kind.
9. Dual Relationship: The Company offers the flexibility of appointing the same person as an employee, shareholder, and director at the same time. The individual can serve all these designations at once after agreeing to a legal contract or agreement.
10. Borrowing Capacity: Registered companies can procure as many funds as possible depending on their credit reputation. They can also issue and accept debenture through a public offering. Most reputed banks are ready to give financial support to registered companies.
11. Equity Raising: Most registered companies easily qualify for equity funding via Angel Investors, stock exchanges, and private equity firms.
Conclusion
The benefits of company registration in Noida can exceed your expectation provided you adhere to what is necessary. Companies in general have a lot of things to handle, from in-house operations to outdoor affairs. Thus, paying attention to compliance is not something they can prioritize because it hardly adds any value from their perspective.
Businesses need to change this mindset and approach if want to reap benefits after being registered under a given legislation. No registration will add any value to the organization if they fail to cope with ever-changing operational norms.
Also Read:
Process Of Registering A Company Logo In India
10 Invaluable Advantages Of Trademark Registration
Process To Register A Logo Trademark In India – An Overview
