If you are thinking of setting up a business here in India, this is a very wise decision indeed. There is huge potential for growth here, and the number of potential customers out there is massive. Many people who set up a new business want to test the waters first, to see if their business idea is going to work or not. By not taking the step of registering their business initially, they are taking a huge gamble, because if the business is successful, someone else might sweep in and steal it from right under their nose. It is fair to say that registering your business is a pretty smart move.
Thankfully, there are a number of foreign company registration options in India that you can take advantage of, and you will get to enjoy the tax benefits, the other legal benefits and any liability protection when it comes to your personal assets. If your business starts to grow, you will want to reach out to various lending institutions and having it properly registered makes all of this easier. If you’re still not sold on registering your business properly, the following are some of the reasons why it is essential.
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- It gives you legitimacy – Starting a new business is incredibly difficult, and finding a customer base, even more so. You need to do all within your power to establish your business enterprise as completely legitimate. People want reassurances that you are not a fly-by-night business that will be here today and gone next year. Credibility is everything here in India, and anything that you can do to improve upon your company’s reputation is time and money very well spent.
- You’re protecting your name – You’re not only protecting your name, but your brand as well. By registering your business, nobody else can steal your name or set up another business with a name very close to it. You will be provided protection the same as any domestic business, here in India. It is also essential if you are to create a brand, a company logo, or some kind of slogan that you want to use.
- It gives you liability protection – Obviously, you want your business to be a complete success, but what happens if everything goes pear-shaped? There may be money owed to wholesalers and other suppliers, as well as people who have invested in the business. By registering your business as a legal entity, your personal assets are protected. It also helps you to be compliant with the various government agencies, which indicates that you are following the relevant laws, and you are a totally legitimate business operation.
There are also tax benefits to be enjoyed here when you register your business enterprise. As was touched on briefly before, you may want to approach lending institutions to borrow essential financing to expand. They will want your business to be registered, and they will actually want your business registration number, before they move ahead.
