There are a couple of good good reason that it makes ample sense to register your little. The first basic reason is to protect one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and is also forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it’s easier when group is authorized.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted to a profitable business or not solely. And if the answer to method has . confident properly resounding yes, then it’s time for one to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the business and like you would want to expand it, your startup can be registered among the many legal formats for this structure on the company accessible to you.
So i want to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration is actually required. This is the method to be able to if you want to do it alone and the goal of establishing the company is to attain 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 or maybe than two individuals. In the case of a Partnership firm, as 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 you will find a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a Person Company in which the company can be a separate legal entity which in effect protects the owner from being personally accountable 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 company and the partners are not personally prone to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 along with a maximum upper limit of corporation. The number of directors must be 2.