As an entrepreneur sets up a business, various legal aspects invariably ensue to be taken care of. Starting from registration of the business with concerned local authorities to understanding prevalent labor laws and other regulations, to handling the entire taxation system and environmental concerns and so on – any form or size of organization faces a whole set of legal formalities.

Delving deeper into each formality, Business unit registration is important and required for the purpose of maintaining statistics. Business registration also helps the government to keep a track of similar or identical units for the purpose of providing support service and other incentives from time to time.

Business Registration not only helps the entrepreneur but also the local authority in order to be meaningfully useful to the registered businesses. As business registers with them, these local authorities maintain a list of units functioning in the vicinity; decide upon various incentives and support that must be provided to them, help these units to avail statutory benefits by providing certification and so on. The local authorities maintain statistics of these units and create nodal agencies at the center, state and district level. This helps the agencies to estimate income tax and service tax revenue, thereby helping the business in question eventually.