When anyone person wants to start the business in India they are always confused about the legal registration like whether is it mandatory or necessary to register a startup in India or not. so in this FAQ we give you some valid reason to register a startup in India.
8 Reasons for “Is it Mandatory or Necessary to Register a Startup in India”
Reason 1 : Legal Entity Name –
when you start the business, you have to always keep a brand name so in the business are not dealing with your personal name. for the brand name you always need to register it with the government of India so another person can’t use that brand name or you can present your company products or services on your brand name.
Reason 2 : Business Bank Account –
In the starting of business you have a just personal saving bank account but as per the government rules, you always need to a business current bank account which is in your company name. Now the problem is banks can’t open the current bank account on the firm or company name without the valid registration certificate & legal documents so this is 2nd one most important reason to register your startup in India.
Reason 3 : Invoices –
In the business you have to always gain the customer trust so now for the customer trust or as per the government rules you have to always issue a proper tax invoice to your customer so now for the issue the invoices you need to register your startup in India. without the registration, you can’t issue the proper invoice to your customers.
Reason 4 : Agreements with third parties –
In the business you have to always need of the other business or consultant or people so now you invite them as tie up a partner or build a relationship with them as the alliance partner. so creating these type of the partnership between the business you have to always sign the some MOU Agreements. Now for the singing purpose on your company name registration is mandatory or necessary for your startup.
Reason 5 : Payment Gateway –
if you have an online business then you need always payment gateways to accept the online payments via debit card | credit card | net banking | mobile wallets | UPI etc. so for the payments gateways integration on your website, you have to apply from these payment gateways companies. Payment gateways companies are required the valid legal documents to open a payment gateway account on your business name. here is the checklist of the documents which is required to open a payment gateway for your business.
Reason 6 : Telephone or Internet Connection –
if you are running a business & you need commercial telephone connection for the Tele caller or high-speed corporate broadband connection then it’s also required the registration of your startup to providing the legal documents.
Reason 7 : Internship Certification –
if you hire any interns for your company or startup then you have to always provide them certification at the end so now college students always join a company which is registered and provide them a valid certification with the stipend. so, for this reason, you have to always necessary or mandatory to register your startup in India.
Reason 8 : Liability in the business –
when you start the business that time you take the risk on the personal level but on the later stage when your business is growing that time you can’t take the too much risk on personal level so you need the limited liability in the business so for this reason you have to always register your startup in India.
So above are the 8 valid reason which says ” Yes it is Mandatory or Necessary to Register a Startup in India”. Registration can be any type of the legal entity from Sole Proprietorship Firm | Partnership Firm | Limited Liability Partnership | Private Limited Company | One Person Company etc.