There are a few good the actual reason why it makes ample sense to register your company. The first basic reason is guard one’s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes to transfer their shares to another it’s easier when group is subscribed.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident which has a resounding yes, then it’s the perfect time for one to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the actual and a method to want to be expanded it, your startup can be registered as the many legal formats for this structure of a company on the market.
So let me first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by 1 individual. No registration is needed. This is the method in order to if you want to do it all by yourself and the goal of establishing vehicle is to realize a short-term goal. But this puts you subject to 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. You should a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust concerning the partners. But similar in order to some proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a Person Company in that your company is a separate legal entity within turn effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 having a maximum maximum of 150. The number of directors must be 2.