There are some good some reasons why it makes ample sense to register your little. The first basic reason is preserve one’s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited reputable company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes to transfer their shares to another it’s easier when group is subscribed.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or truly. And if the answer to the confident too resounding yes, then it’s the perfect time for in order to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the organization and the way you want to flourish it, your startup can be registered as one of the many legal formats of the structure on the company open to you.
So ok, i’ll first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by just one individual. No registration it takes. This is the method in order to if you want to do it alone and the purpose of establishing the company is obtain a short-term goal. But this puts you liable to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. For a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust within partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a 60 minute Person Company in that this company is a separate legal entity which effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not 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 isn’t any upper limit; the number of directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 with a maximum maximum of corporation. The number of directors must be 2.