Benefits of Company Registration in Chennai

While looking for a suitable business to establish in Chennai, it is always recommended to look out for the advantages associated with the registration of a pvt ltd company registration in chennai. Several factors are usually looked at while determining the benefits and advantages of such an option. Among such important factors are availability of staff and trained workers who can manage the daily operations, whether the Private Tenant Liability Company has its own leasehold or outright office, etc. In this article, we shall look at the advantages of pvt ltd company registration in Chennai.

Many new entrepreneurs are encouraged to register a Private Tenant Liability Company (PTLC) so as to attract greater investments from venture capitalists. The greatest advantage with a Private Tenant Liability Company registration in Chennai is that it enables investors to become involved in the business even before the business gets a go-ahead from the local authority. Moreover, most of the new businesses that are launched in Chennai are supported by a handful of venture capitalists who provide seed money and further guidance to the startups.
However, there is one major drawback with a Private Tenant Liability Company (PTLC) registration. The main drawback with the Private Tenant Liability Company registration is that it does not provide any legal protection to the investors from the creditors of the startup company. Most of the startups fail because of lack of funding. And therefore, most of the investors who have funded their ventures lose their source of income because they have not secured legal guarantees with the startup company. Hence, the most common scenario occurs when the new startups cannot pay back the creditors of the venture capitalist on time.
The second major advantage associated with the Private Tenancy Company Registration in Chennai is that the Companies Act, 1860 provides the power to the local authorities to regulate all the activities of the Private Companies. This regulation provides an added incentive to start-ups to register themselves as a Private Company. The Companies Act specifies the maximum number of employees that can be owned by the Company and also specify the minimum number of employees that the owner can have under his control at the same time. In other words, if a self-employed person tries to register himself as a company under the Private Company Registration in Chennai, the local authorities can ask him to increase the number of employees that he is allowed to hire.
In addition to these significant advantages, the Private Company Registration in Chennai is also beneficial for the investors who wish to become self-reliant. As the government controls the distribution of goods and services, the self-reliant investor must incorporate a business that sells products or services produced by the local supply chain. If he wants to become self-reliant, he must incorporate a manufacturing unit that uses raw materials available in the area. It is only when these steps are properly followed that investors will be able to establish their businesses free from governmental interference. Thus, they can successfully establish their businesses in Tamil Nadu without fearing the harassment of the government officials.
The benefits that investors and the local businesses stand to gain through the registration of a Private Company are many. They are not only able to avoid the cumbersome process of incorporating a business but also get help from the UK business rules and regulations. The introduction of the Private Company Registration in Chennai has indeed helped the start-ups in the country to function smoothly and be assured of smooth functioning of their companies in the long run.