There are several good reasons why it makes ample sense to register your little. The first basic reason is to safeguard one’s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if an additional is registered. 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, from a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is subscribed.
Very there’s always a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when your business idea is good enough to be converted into a profitable business or not too. And if the answer to method has . confident and a resounding yes, then then it’s time for someone to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the organization and a method to want to be expanded it, your startup could be registered as among the many legal formats for this structure associated with company on the market.
So ok, i’ll first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by just one individual. No registration becomes necessary. This is the method to if you must do it for yourself and the purpose of establishing the company 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 even more than two individuals. For a Partnership firm, as the 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 belongings in any eventuality.
c) Online OPC Registration in India is a Person Company in which the company is often a separate legal entity which in effect protects the owner from being personally to blame for any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 having a maximum maximum of corporation. The number of directors must be 2.