There are a few good the actual reason why it makes ample sense to register your company. The first basic reason is to safeguard one’s own interests by no means risk personal assets to the point of facing bankruptcy in case your business faces an emergency and also is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if firm is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited enterprise. (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 the company is registered.
Very almost always there is a dilemma as to when organization should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or truly. And if the answer to and also confident properly resounding yes, then it is time for in order to go ahead and register the startup. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of enterprise enterprise and how i want to expand it, your startup can be registered as among the many legal formats in the structure associated with company open to you.
So permit me to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by just one individual. No registration it takes. This is the method to if you must do it all by yourself and the purpose of establishing business is to attain a short-term goal. But this puts you subject to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the event of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust within partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a Person Company in that this company can be a separate legal entity within turn effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally liable to lose their personal holdings.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.