There are several good some reasons why it makes ample sense to register your little. The first basic reason is to safeguard one’s own interests and is not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes managed their shares to another it’s easier when group is registered.
Very there’s always a dilemma as to when organization should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or truly. And if the answer to the confident too resounding yes, then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it is always beneficial find a quote as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of corporation and when there is want to be expanded it, your startup could be registered among the many legal formats belonging to the structure of the company on the market.
So ok, i’ll first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by 1 individual. No registration it takes. This is the method to if you wish to do it for yourself and the purpose of establishing business is to achieve a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the case of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust concerning the partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a single Person Company in how the company can be a separate legal entity which in effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 by using a maximum maximum of 50. The number of directors must be 2.