Why is company registration in India mandatory?

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Why is company registration in India mandatory?
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Introduction
There are several steps involved in forming a
corporation. Before founding a Company, the
firm's structure should be determined, i.e.
whether the Company will be registered as an OPC,
LLP, or Private Limited Company. After deciding
the structure, the Company name must be
determined, and the directors must obtain DIN and
DSC before submitting for Company Registration.
company Registrationn
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Is Company Registration Mandatory?
Yes, company registration is required. When a
company is formed and registered with the
Ministry of Corporate Affairs. The Ministry's
primary focus is on enforcing the Company Act
2013, the Companies Act 1956, the Limited
Liability Partnership Act of 2008, and other
relevant Acts, rules, and regulations that govern
how the corporate sector operates legally.
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What happens if the company is not registered?
There are several disadvantages if the Company is
not registered. Let us go over it in detail below

• Penalties
• No Recognition
• Opportunities for business is Limited
• Difficulty Obtaining Funding

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What are the Different Types of Company
Registration?
There are three major types of company
registration
One Person Company
Private Limited Company
Limited Liability Partnership
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What is the best type of company registration?
Private Limited Company is the most widely used
Company name among enterprises. It has a variety
of advantages. For starters, it provides the
Company with a distinct identity. The
responsibility is limited, and earnings and
losses are divided among the shareholders. There
is no compulsion in the professions.
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