Company Registration
A company is a legal entity initiated by a group of people to involve in business. A company is a body corporate business organization registered under the companies act. It can be an artificial person created by the law.
About Company Registration
It can be a public or a private company, unlimited company or a limited, company having a share capital or a company limited by guarantee, or a community interest company. A company is an association of people who lay down money or money’s worth to a common fund and use it for an objective. It is an artificial person that exists as a corporate legal entity which is different from its core members or shareholders and has a particular authentication utilised for its signature. A company has its own legal entity differ from its owner. It’s a difficult business structure, with higher set-up and administrative costs because of other reporting needs and higher-level legal regulations. A company is a business entity registered under the Companies Act.
Benefits Of Company Registration
Capital Requirement
Companies are usually best able to attract capital because investors are confident that their liability will be limited, their operations are in public domain in the transparent manner, easily accessible and ownership can be assigned to other investors.
Marginal Ability
Company form of organization is a better alternative if the operations are deep, tough in nature and require skilled management at various levels.
Degree of control and management
There is difference between ownership and management, the management and control of the company business is assigned to the board, who are generally the elected representatives of shareholders.
Stability of Business
Companies have the most business strength due to its features or everlasting being an artificial or legal person. The life of the company is independent and cannot depend upon the life of the members.
Managerail need
When a business is run on a large- scale basis, it will require the services of professional to manage different departments. The company form of organisation is able for such concern.
Transferability of Shares
If the shareholders of a company are dissatisfied with the growth of the business, they can sell their shares any time. During all this change of ownership, the business continues to command.