As per Lawkidunya, if the offering is not registered, it is often called a private placement or unregistered offering. In simple words speaking, unregistered offerings are not subject to some of the laws and regulations that are designed to protect investors, such as disclosure requirements that apply to registered offerings.
What is a Company That is Not Registered as Per Law
As per law, usually, an unregistered business is a sole proprietorship, a legal structure that requires you to use your Social Security Number (SSN) in place of an Employer Identification Number (EIN) and your legal name as the name of your company.
What Does Registered Mean For a Company
According to law, a registered company is an organisation which is formed and registered with the appropriate statutory authority of the country as a ‘company or corporation’ in accordance with the corporate and securities law of that country.
Why Do We Need to Register as Per Law
If we look in the eyes of law, It Secures Your Entity
Since your company isn’t registered, anyone can run an entity under the same name as yours. Benefiting from your entity’s well-earned name, they might sell their products/services and snatch away all your great customers and markets. Not registering your company would pave the way for such fraud.
Why Registered Business is Better Than Non Registered Business
As per Lawkidunya, one of the biggest advantages of a registered business (private limited company or limited liability partnership (LLP) or one-person company) is that it affords limited liability protection to its members. Hence, the promoters of the business would not be personally liable for the liabilities of the business.
What Happens If Company is Not Registered as Per Law
As per law, if the firm registration is not done, then the firm or any other person on its behalf cannot file a suit against a third party for breach of contract which the firm has entered into. Further, the person filing the suit on behalf of the firm should be in the register of the firm as a partner.
Can I Run a Company Without Registration
As per Lawkidunya, Is it mandatory to register a company before starting a business in Pakistan? The answer is no! Registering a company is not the only way to start a business in India. There are many other ways to start your business in India, but people are not familiar with.