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What is a company?

A company is an intangible and invisible entity. It is created by law to perform business activities. It has a distinct legal personality and perpetual succession. A company is not affected by death, insolvency or insanity of an individual.

To have a legal identity, it is important to register your company. There are myriad of benefits of company registration in India, let us throw some light on a few of them!.

Company registration in India gives your company a legal identity

As far as law is concerned, the company is separate from its owners or partners. Hence, the company enjoys its own rights and handles its liabilities on its own. The company has its own personality and handles its legal obligations on its own. This ensures that the owners do not owe any liability to the creditors. If you want a hassle free company registration, you can contact a CA in Janakpuri.

2. Limited liability of the company

This is another important benefit that you avail by getting your company registered. The liability of partners or owners of the company, in a LLP, cannot exceed the amount of shares they own. Yet, there is an exception to the case. In case the owners have agreed to unlimited liability as per contract, they can be deemed liable. To understand these legal boundations, get in touch with a ca firm in Janakpuri and get reliable advice.

3. A registered company enjoys perpetual succession

Once you register your company, it enjoys perpetual succession. This implies the company does not cease to exist unless you dissolve it by law. Irrespective of changes in the organisation, the company stays. As mentioned before, the company is not affected by human factors. Members may come and go, but the company continues.

4. Easy transfer of ownership

When registration is done in the name of owner, the documents cannot be transferred. In a registered company, the owners are only shareholders. This makes it possible and easy to transfer ownership rights to someone else.

5. Company registration makes it easy to arrange funding

There are better prospects of fund borrowing in case of company registration. Besides loans, the company can issue debentures and receive deposits from public. There are many banks also, which prefer to give loans to registered companies.


Since company registration in India has so many benefits, it is a good idea to talk to a legal expert soon. After all you will enjoy various benefits and at the same time will be able to secure your finances.

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