There are many good some reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard one’s own interests as an alternative to risk personal assets to the point of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is 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 a limited firm. (These are terms which have been described later on). Another valid reason is, in the eventuality of 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 solution to which is, primarily, if your business idea is good enough to be converted to a profitable business or not solely. And if the answer to method has . confident which has a resounding yes, then it’s time for one to go ahead and register the new. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of corporation and how i want to inflate it, your startup can be registered as the many legal formats with the structure associated with company available.
So permit me to first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by just one individual. No registration is needed. This is the method to if you must do it all by yourself and the reason for establishing the company is gain a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust concerning 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 one Person Company in that the company is a separate legal entity which usually effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 with a maximum maximum of corporation. The number of directors must be 2.