Investors are trooping in India to set up their businesses. Among the thriving industries now here are banking, healthcare, education, food processing, information technology, and real estate.
The selling points of India as an investment hub are the following:
- business-friendly environment
- low labor cost
- ease of doing business (due to technology automating registration processes)
You can take advantage of this opportunity and register a limited company in India.
A limited company is a corporate structure wherein the stakeholders are only liable to the debts equivalent to their ownership. It means their personal assets should be left untouched when settling financial obligations.
But that is just one of the things that can entice you to register a limited company.
It Is Now Cheaper To Register A Limited Company
The Indian government released a mandate last year that made investors cheerful. It cancelled the incorporation fee of the companies registering, making the whole process a lot cheaper. Take note that this transaction also includes professional fees of the lawyers and other consultants.
This deduction can go directly to the savings of the company, which can then be used as additional capital.
Apart from this, there is no requirement minimum authorized capital stock now, which also cuts off overall initial investment.
Better Financial Management
Incorporating your limited company means that it is now a separate legal entity.
This gives your company the power to own assets and to sign contracts. It also protects you personally from the potential losses of the company.
With a legal entity, it would be easier for your company to access bank loans, which is necessary when you are seeking additional funding. More capital is needed when you are expanding your business.
Building Trust And Credibility
For your business to grow, you should be able to build a strong customer relationship.
When you register a limited company, it shows that you are taking your business seriously. This is because you are going through legal hoops to legitimize your company.
This can then lead to your company developing trust and robust credibility—two things that could boost your image and help you earn more.
Of course, these will not matter if you do not have a business concept yet in your mind. You can outline now your short-term and long-term goals for your business and turn your dreams into reality.