There are some good some reasons why it makes ample sense to register your little. The first basic reason is guard one’s own interests by no means risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and also is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited reputable company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes to transfer their shares to another it’s easier when company is recorded.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted to a profitable business or truly. And if the answer to the confident and a resounding yes, then then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and a method to want to expand it, your startup could be registered as one of the many legal formats for this structure of the company available to you.
So let me first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by 1 individual. No registration is needed. This is the method to be able to if you should do it yourself and the goal of establishing the company is to achieve a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. You should a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust between the partners. But similar the proprietorship you will find a 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 really a separate legal entity that effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally liable to lose their personal holdings.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.