Want to keep the Liability Limited

Generally in other business if your business fails to pay the dues to your creditors, banks, etc then business owners are liable to pay it from their personal assets but the same is not in case of the company. In case of the company registration if company fails to pay its dues, then party cannot demand it from the personal assets of the shareholders. Shareholders are liable for only amount they invested at the start of the business. Loss of remaining amount is only suffered by the person who paid the amount to the company.

Want Management and ownership Separate

It is a unique feature which is available in company only that management and ownership both are the separate. Sometimes business owners only invest and do not manage it or after a period they want to continue to invest in their business and enjoy the profits but handover the management to others like employees, managing partners etc. But issue arises to them is that they continue to liable for the wrongdoings or acts of the person managing the business. But the same is not in the case of the company. In case of the company business owners are not liable at all for the acts of others. The person who is at the fault will be solely responsible for his acts.

Unique name is need of the business or not

As everyone found in India that a same business name is used by various entities which make it difficult for entity to create a brand of their business, expand their business nationwide or worldwide and make difficult for the customer to identify the original entity and other person take its benefit by starting the business with the same name. This issue is tackled by the Company form of business. Once a name registered for the company, it cannot be registered by any other person or entity. Hence businesses enjoy the unique name and avoid the chances of delicacy.

Need to raise Loan in future

There are various criteria of the banks which are checked while sanctioning of the loan and the same is also applicable in the case of the company. But company is preferred over other forms of business as it is registered by Central Government and banks even also provides collateral free loans to the companies.

Need Foreign Direct Investment (FDI) or Domestic Investment (DI)

Not all the businesses are allowed to take FDI or DI. But company is allowed to take FDI and DI and invest it in the business which make it easier for the businesses to grow and expand their business easily by getting the investment.

Want to avail Startup Benefits or Not

Startup is the scheme of the government to give incentives and support the new businesses. Government gives the 3 years income tax exemption to the entity registered under the startup. Reduced the government fee for applying trademark, patent, copyright, etc. Government also made a seed fund specifically for the startups to provide collateral free loans and subsidies. But not every form of business can register itself in the startup. Only Company and LLP are the forms of business which can register and take the benefits of the startups.