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5 Reasons You Should Register Your Business Now

Register Your Business: The Indian government has been trying hard to improve the ease of doing business in India. This has ensured that registration of business remains optional providing entrepreneurs with a hassle-free option of starting a business. Yet, increasingly businesses have opted for company registration.

Once your business idea, revenue model, and MVP are in place, you can start considering options for registering a company. Let us look at the types of business entities you can register in India.

Types of business entities

Registering a business was a costly affair once in India. Today, it is absolutely simple, online, and cost-effective. The rules for all forms of business entities are clearly defined. Based on your requirement, you can select any of the following types of business registration.

  • Sole Proprietorship

This is one of the easiest forms of business registration available in India. It is ideal for small businesses and those being run by an individual. The cost of set-up is minimal, compliances are minimal, and the process is quick. However, there is no legal distinction between the individual and the company. You also don’t get the benefits of limited liability which come with other forms of company registration.

  • Limited Liability Partnership

Limited liability partnership or LLP is an easy to register business registration type which gives your business separate legal entity status. The compliance for LLP is comparatively less than that of OPC or Pvt Ltd company, but slightly more than that of a proprietorship firm. LLP registration is better than the partnership registration form which does not offer limited liability or separate legal status for your business.

  • Private Limited Company

Private limited company registration is ideal for established or funded start-ups that can handle compliance. Registering a private limited company will offer a completely separate identity for your business. Besides, private limited company registration is ideal for raising capital or applying for funding. Investors prefer this type of registration due to its legal clarity.

Why Company Registration?

Well, so now you know the type of company registrations possible in India. That should give you some clarity about what business registration type suits your business. Still confused, let us share the top 5 reasons for company registration:

  • Limited Liability

Registering your company will limit your liability and help you protect your personal asset. Registering a business helps the founders separate their individual liabilities and that of the business. Once a business is registered as an LLP, Private Limited Company, or One-Person Company, the personal assets of founders will be protected against any liability.

  • Funding Options

Businesses require funds to expand and turn their vision into reality. Registered businesses are more likely to be eligible for funds by a traditional source of funds such as banks and financial institutions. On the other hand, raising funds via debt or equity is impossible without a registered company. VCs and investors would prefer doing business with registered companies.

  • Business Bank Account

Individuals in India with no form of business registration find it next to impossible to open a business bank account. Company registration irrespective of the type makes you eligible to open a business bank account. A current business bank account will be an important asset for your business and will help you in doing business with top companies with ease and without any hindrances.

  • Business Continuity

Start-ups operate in a dynamic environment and frictions between teammates are a common occurrence. If one of the founders decided to quit, a registered business would continue which might not be the case with unregistered businesses. Registered companies can continue to remain in business even if any partner were to retire or after the death of any of the founders.

  • Brand Recognition

Today, it is comparatively easier for your competitors to copy the USPs of your business. The brand value of your business among your customers may help you ensure customer loyalty and increase the customer lifetime value. Company registration will help you in branding your business and create a huge brand over the years.

Apart from the reasons already mentioned, company registration also helps in creating additional credibility, allows you to award internship certificates, generate official invoices, and brings trustworthiness to your business.


Company registration is an easy process that can be done online. As a business, there should be absolutely no reason for you to not register your company. Start-ups can also seek the help of professionals who can help in completing the company registration process.

If you are not sure about the type of company registration suitable for your business, you can get in touch with Provenience or other such companies that can guide you in the process. Company registration could be the next big step for your business which will open the doors to several new opportunities.

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