Anyone can think of starting a business, especially in today’s time when internet has made everything way too convenient for us to do. A business idea can pop up anytime but its successful execution requires proper planning and preparation. One cannot simply go ahead with setting up a business without any planning and dream of becoming successful. Success is guaranteed only if you have a clear idea about each and everything required to set up a company. The major confusion that most of the people face while going ahead with their plans is regarding the registration.

Why Register A Company?

Registration process is considered optional by most of the people who plan to start a business as it is not a necessity. An individual can launch his business and start making money without registering his company. Many consider it to be a complicated and costly process and continue doing their business being sole traders. Here are some of the pros and cons of registering your company-


  • Esteem: By registering a company, one can raise the status of their business as it becomes more trustworthy in the eyes if clients. A registered company means that it has a longer lifespan and is here in the industry to stay for long. This would bring a change in the way they are approached by the clients. While running the business as an individual it becomes difficult to convert customers whereas with a registered company, one can do it with ease.
  • Professional Account: Maintaining a bank account in your company’s name will require your business to be registered as an entity. This will help you in keeping your personal and professional life separate.
  • Hiring employees: It is not possible to legally hire employees unless you are a registered company. Hence, it is always suggested to register the business as soon as one is ready for operations.
  • Loans and Investors: Getting loans and investors become much easier when you have registered your company. Funding is crucial as far as a business is concerned. Registering a business means increases the chances of getting hassle-free funding.


  • Expense: It is expensive to register a company when compared to running a business being a sole trader.
  • Legal Hassles: Registering a company involves many legal requirements.
  • At least one director is required.

One may ask, why register a company? But depending on the nature of the business one owns, it is crucial to make a decision on company registration. Stay legally protected by registering your business.

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