There are many good some reasons why it makes ample sense to register your company. The first basic reason is to safeguard one’s own interests by no means risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it’s easier when group is registered.
Very there’s always a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or not too. And if the answer to and also confident too resounding yes, then it is time for one to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the actual and the way you want to inflate it, your startup could be registered as one of the many legal formats belonging to the structure of a company accessible to you.
So i want to first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only 1 individual. No registration is needed. This is the method in order to if for you to do it for yourself and the objective of establishing vehicle is gain a short-term goal. But this puts you liable 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. In the case of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust regarding the partners. But similar in order to some proprietorship you will find a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a 60 minute Person Company in that the company is really a separate legal entity which usually effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), from where the 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 wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 using a maximum maximum of corporation. The number of directors must be 2.