The word incorporation means the process of consulting a company, organization, or city as a legal corporation. Incorporating an organization or company in India includes complying with the rules stated in the Companies Act 2013. Moreover, ensuring legal compliance involves many efforts, and the advantages of incorporation are far more. The online company registration made it easier for companies to get their company incorporated.
Benefits of Company Incorporation:
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Helps in generating capital-
Capital is needed in a company to produce goods and services. A company has two methods to obtain capital- one is equity, which means to raise funds by debt and public funds such as bank loans, and the other is different forms of credit. Hence, once the company is incorporated, the company is considered more reliable, and then it becomes easy for a company to obtain capital.
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Separate Legal entity-
A company that is incorporated is denoted as a separate legal entity that means it can hold its funds and assets. The company’s entity is treated as a separate entity rather than a shareholder’s entity. The company is known as a person who controls, disposes, and manages the property.
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Capacity to Sue–
An incorporated company is a legal entity and holds the right to sue other people, and other companies can also sue it.
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Limited Liabilities-
As per the Companies Act 2013, if a company gets shut down, members are only responsible for their own liabilities but if the company is incorporated, the members become legally bound to contribute to company liabilities with nominal shares.
These were the major advantages of company incorporation. If you need any assistance in getting your company incorporated, contact Ontaxco. Ontaxco is a trademark registration in Delhi that will help you throughout the process of company incorporation.
