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Benefits of Incorporated Business Structures |
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Know about the benefits of Incorporated Business Structures and Company Registration |
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| Author: Sonia Shekar |
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- Personal Assets Protection
Liabilities of owners of incorporated business organisations are limited to their agreed contribution. It means a shareholder of a Company or a partner in an LLP only need to contribute his agreed share. After he contributes his share, he is not liable to contribute additional amount even if the company or LLP creates further liability in its name.
- Perpetual Succession
An incorporated business continues irrespective of change in its owners. It is because, as per the law an incorporated business is a legal person distinct from its owners. So change in the owners will not affect the existence of an incorporated business. This is not the case for a partnership or sole proprietorship. If a partner resigns or dies, it is the end of the partnership firm. Same is the case of a sole proprietorship firm.
- Credibility & Acceptance
Since information about the owners, the registered office and capital contribution etc are available to public verification; incorporated businesses are more acceptable to general public and prospective trade partners.
- Name Protection
An incorporated business is registered with a name and the same name will not be available for registration for any other firm.
- Investment and Loan availability
Investors always prefer an incorporated business as the same is regulated under a law. Its business scope and financial information etc are available for verification at any time.
Company registration in India is regulated by the Companies Act, 1956 and is administered by the Ministry of Corporate Affairs (MCA) through the Offices of Registrar of Companies (ROC) in each State.
Types of companies that can be registered in India are Private Companies and Public Companies.
Company Registration process starts by filing of name application with the ROC. Once, name is allotted, company registration documents have to be prepared and filed with respective ROC for registration. Up on scrutiny of documents, in a day or two the ROC registers the Company and issue the Certificate of Incorporation.
About Author
Sonia Shekar - Working for a software company called Denisys Technologies.
For more details on Company Registration in India, visit http://companiesinn.com
Article Source:
http://www.1888articles.com/author-sonia-shekar-46926.html
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