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Why should you incorporate company in India

Why should you incorporate company in India

Why should you incorporate company in India

Ayush License in India

Registering a Private Limited Company is the best option because it allows for tax benefits, credibility, business expansion, and faster loan approval.

India has the world's second-highest proportion of unregistered businesses. However, the number of registered companies has steadily increased, with a More than 17 lakh according to Ministry of Corporate Affairs data.

Starting with the baby step of shortlisting your business idea, doing in-depth research and development of market trends, developing the product or service, looking for funds, and sketching out a rough business plan, the final step towards realizing your entrepreneurial dream is company registration.


Companies can be registered as private limited, sole proprietorships, partnerships, limited liability companies, one person companies, and so on, each with its own set of rules. All private limited companies and LLPs, for example, are governed by the Companies Act 2013 and registered with the Ministry of Corporate Affairs. Previously, registering a business was a time-consuming and costly process fraught with legal complexities. However, seeking professional assistance is now simple and inexpensive, and it comes with a slew of advantages.

Private Limited company

This is one of the most common types of registration, and it is widely used because it provides greater flexibility, limited liability, and a high potential for expansion. The Companies Act of 2013 governs the formation of a private limited company.

Sole proprietorship

A sole trader company, also known as a sole proprietorship, is a type of business entity in which only one person owns and manages the business operations. It is simple to set up and requires no capital. There are no advantages to limited liability, and there is no legal distinction between the business and its owner.


A partnership company, as the name implies, is run by two or more partners. A partnership agreement is first drafted, outlining all of the partners' roles and responsibilities, as well as other terms and objectives. This has the advantages of being simple to implement, requiring little compliance, and being relatively inexpensive.

Partnership with limited liability

According to the LLP Act of 2008, the limited liability partnership, or LLP, was first introduced. It limits owners' liability and is simple to maintain. One disadvantage of LLP is that it cannot easily accommodate employee stock options and does not attract investors.


Opening a business bank account: 

A current bank account is a basic requirement and an important asset for any business, whether it is a sole proprietorship, partnership, private limited company, or other entity, and serves as legal proof of existence. Copies of the incorporation certificate and memorandum of association are required when opening a business bank account for a private limited company in the respective state, whereas no such documents are required for sole proprietorship and partnership companies.

Transfer of ownership is simple:

At some point, the need to transfer ownership of a business arises, and in such cases, it becomes more complicated for unregistered business entities. Sole proprietorships cannot be sold; only asset ownership can be transferred. Transferring shares and business-related documents, on the other hand, is simple for entities registered as a private limited company or an LLP.

Limited liability protection: 

Any business is prone to loss, and one of the main benefits of registration is that it provides limited liability protection, which means that the business promoters are not liable for the business's liabilities. There is no way to lose personal belongings.

Obtain funding

Seeking and securing investment is essential for moving your business forward. Debt or equity may be used to fund the project. The incorporation of a company facilitates the funding process and attracts more potential investors. Furthermore, most banks and financial institutions prefer to fund registered entities over unregistered entities.

Recognized brand

A registered business is the most valuable asset and can be passed down as an inheritance to future generations or sold to new breed entrepreneurs. For long-term viability, a company must be registered.


10-15 Working Days

Simply tell us a few details about your company and submit the necessary documents, and we'll get started. You'll be able to operate as a private limited company within 15 working days – without even leaving your house.


We make your connections with the public authority as simple as conceivable by taking care of the entirety of the desk work. We will likewise give you complete straightforwardness about the cycle with the goal that you can set practical assumptions.

100+ Experience Staff to guide you 

Assuming you have any inquiries regarding the interaction, kindly contact our group of experienced Startup Consultant. Be that as it may, we will really bend over backward to dissipate any questions you might have.

19 Apr

Neha Puri
Neha Puri

To start a new business is easy, but to make it successful is difficult . So For success, choose the best." Be compliant and proactive from the beginning and choose NEUSOURCE as your guidance partner.

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