There are many good good reason that it makes ample sense to register your little. The first basic reason is preserve one’s own interests and not risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes managed their shares to another it’s easier when company is enrolled.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, as well as business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to the 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 create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and the way you want to be expanded it, your startup can be registered among the many legal formats of the structure in a company accessible to you.
So i want to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by 1 individual. No registration becomes necessary. This is the method to if for you to do it for yourself and the purpose of establishing the organization is to attain a short-term goal. But this puts you subject to losing all your 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 event of a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust between the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a single Person Company in how the company can be a separate legal entity that effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal 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 minimal number folks needed are 7 by using a maximum upper limit of 50. The number of directors must be 2.