There are a couple of good some reasons why it makes ample sense to register your company. The first basic reason is guard one’s own interests as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes to transfer their shares to another it’s easier when an additional is enrolled.
Very almost always there is a dilemma as to when organization should be registered. The answer to which is, primarily, when your business idea is good enough to be converted to a profitable business or never ever. And if the answer to method has . confident which has a resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of corporation and a method to want to grow it, your startup can be registered as among the many legal formats belonging to the structure in a company on the market.
So let me first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by just one individual. No registration it will take. This is the method in order to if you want to do it for yourself and the reason for establishing vehicle is gain a short-term goal. But this puts you at risk of losing every 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, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust between the partners. But similar together with proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a one Person Company in which the company is a separate legal entity which usually effect protects the owner from being personally liable for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally liable to lose their personal holdings.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 with a maximum upper limit of 50. The number of directors must be 2.