There are a couple of good some reasons why it makes ample sense to register your company. The first basic reason is to safeguard one’s own interests but not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited firm. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes managed their shares to another it’s easier when the company is registered.
Very almost always there is a dilemma as to when business should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not. And if the answer to method has . confident and a resounding yes, then it is time for someone to go ahead and register the new. And as mentioned earlier on it’s always beneficial find a quote as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the business and a method to want to be expanded it, your startup can be registered as one of the many legal formats for this structure of the company available.
So i want to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by 1 individual. No registration it will take. This is the method in order to if for you to do it for yourself and the reason for establishing the company is to realize a short-term goal. But this puts you at risk of losing your own 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 a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust regarding the partners. But similar to a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a Person Company in that your company is a separate legal entity within turn effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the regarding directors should 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.