What is the purpose of a company setup? Why is it necessary for a registration?

What is the purpose of a company setup? Why is it necessary for a registration?

Credibility Although a company is operating on the regular, there are legal processes for managing expenses, providing clarity and credibility to business associates whether it’d be owners, business partners, business contacts with the company, investors, as well as new investors who are interested in joint ventures with the company.

Stability Establishing a company or business is something that requires long-term benefits until the shareholders who own the company decides to go out of business. The stability of the company still hopes to reach a certain level where if a shareholder dies or becomes incompetent, the business itself can continue to build trust with other people who will join the business.

Risk reduction Responsibilities of the business owner is what investors are most interested in when it comes to top priority. When investors can limit the risk investing, the company can therefore become a suitable business model for investors who prioritize limiting their liabilities.

company setup

Fundraising The company can answer the business where funding is required, in which does not relate to the shareholders that owns the business as there are business operations within the committee. 

Future growth Entrepreneurs who want to start a business do not actually require a large amount of capital as there is a strong tendency to expand the business in the future. The establishment of a limited company will facilitate the growth of the business which will then be transformed into a public limited company in the future

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