There are a couple of good good reason that it makes ample sense to register your company. The first basic reason is to protect one’s own interests as an alternative to risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and is also forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when company is registered.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is good enough to be converted to a profitable business or truly. And if the answer to and also confident and also resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the organization and the way you want to expand it, your startup could be registered as one of the many legal formats for this structure of a company accessible to you.
So ok, i’ll first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration is actually required. This is the method to be able to if you should do it on your own and the objective of establishing vehicle is obtain a short-term goal. But this puts you prone to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. For a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust in between the partners. But similar in order to some proprietorship there is a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is single Person Company in that your company is often a separate legal entity which effect protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally liable to lose their personal power.
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 regarding directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 with a maximum upper limit of 50. The number of directors must be 2.