There are many good some reasons why it makes ample sense to register your little. 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 a crisis and and that is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited group. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes managed their shares to another it’s easier when group is subscribed.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, when the business idea is good enough to be converted to a profitable business or not solely. And if the answer to that is a confident and a resounding yes, then it is time for someone to go ahead and register the startup. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the organization and how i want to grow it, your startup can be registered among the many legal formats belonging to the structure in a company available to you.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by one particular individual. No registration it takes. This is the method to be able to if you should do it alone and the reason for establishing business is to achieve a short-term goal. But this puts you liable to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the event of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust regarding the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is single Person Company in which the company is really a separate legal entity which in effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners are not personally liable 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 should be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 having a maximum upper limit of corporation. The number of directors must be 2.