There are several good good reason that it makes ample sense to register your little. The first basic reason is to guard one’s own interests but not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes managed their shares to another it’s easier when group is registered.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to the confident which has a resounding yes, then it’s the perfect time for one to go ahead and register the startup. And as mentioned earlier on it will be beneficial find a quote as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and a method to want to be expanded it, your startup can be registered among the many legal formats with the structure on the company open to you.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only 1 individual. No registration it will take. This is the method to be able to if for you to do it alone and the goal of establishing the company is to achieve a short-term goal. But this puts you at risk to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the event of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust regarding the partners. But similar to a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is single Person Company in which the company is really a separate legal entity which in effect protects the owner from being personally to blame for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 with a maximum upper limit of fifty five. The number of directors must be 2.