How to Open Small Business in India? SMB Company Registration

Narendra Kumar

04 Dec, 2020

Firstly, it is very important to register a company to do business or to do extend the business. Company Registration is done to make transparency in the market as well as increase the credibility of the business. You should register your company even if you are doing a small or large business. A small or large business deals with several large entities. If your company is registered, it will be easier to do business as a private limited company or Limited Liability Partnership or as a sole proprietor. In addition to this, your company will adhere to the laws, acts, rules, and regulations that are prevalent in the business environment and you will not attract any legal penalty due to non-compliance with the rules and laws.

If the Private Limited Company Registration is under the Ministry of Corporate Affairs, then all such businesses will enjoy several benefits and advantages given by the government. The government has given various incentives to registered companies like tax reduction. You can enjoy this incentive only if the company is registered. Your SMB/ MSME will be eligible for the incentive given by the government.

If you need workers or business partners who want to work in your company, these people will only work if your company is registered because they trust the registered company. Any business partner will happily work with an organization that is registered, as it proves the credibility and authenticity of the organization.

SMB Company Registration will help in many ways. Some of the reasons are listed below-

• Business growth:

The first step is to increase your business growth by registering your company with MCA/ROC. If your company is registered, it ensures transparency in the market. If you need bank loans for improving your business, they will like to see tax receipts, last year earning transaction and figure out your futures earning before they give the loan to your company.

• Quick payment:

If you are running an online business transaction, it is important to tie up with a payment gateway. The big banks offer most of the services of quick payment. Payment gateways which transfer the cash will not entertain if your SMB Company is not registered. If your company is not registered with MCA/ROC, you will get smaller payment gateway service that will pay you the money once in a week and commission will be higher when compared.

• Exporting goods:

Company registration is much important in exporting goods. Without company registration shipping the goods across India is not easy. Again, this is because if your company is not registered, then the importer will not be sure of the quality of the goods that you will sell him/her. But, if it is registered, then the transaction, as well as the payment process, is much easy.

• Personal assets protected:

If you are facing loss in the business and you are unable to pay the supplier. And if the company is not registered, the supplier can ask to pay off by your personal assets like house, car if your business does not have money. If the company is registered the company can take all his dues from his business and the personal properties cannot be touched.

• Opening your business account:

You need to provide proof that the company is registered to open the business bank account. The personal activities can be kept separate from your business activities. You can pay the payment to the client on your business name instead of your own name. This makes the business dealings an easy process.