There are many good some reasons why it makes ample sense to register your company. The first basic reason is to safeguard one’s own interests as an alternative to risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if this company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes managed their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, when your business idea is good enough to be converted into a profitable business or truly. And if the answer to and also confident and also resounding yes, then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the organization and how i want to be expanded it, your startup could be registered as among the many legal formats with the structure in a company available to you.
So let me first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by one particular individual. No registration it will take. This is the method in order to if you must do it for yourself and the reason for establishing vehicle is gain a short-term goal. But this puts you liable to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust in between the partners. But similar together with proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a 60 minute Person Company in which the company is really a separate legal entity which effect protects the owner from being personally to blame for any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally liable to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 having a maximum upper limit of 50. The number of directors must be 2.