There are a couple of good main reasons why it makes ample sense to register your company. The first basic reason is to guard one’s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited firm. (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 enterprise is subscribed.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, when your business idea is good enough to be converted into a profitable business or not solely. And if the answer to that is a confident and also resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it is often 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 a method to want to expand it, your startup can be registered as the many legal formats with the structure of the company on the market.
So allow me to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration it takes. This is the method to adopt if you should do it yourself and the reason for establishing business is gain 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 maybe than two individuals. In the event of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust in between the partners. But similar using a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a single Person Company in that the company is often a separate legal entity which effect protects the owner from being personally liable for any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally liable to lose their personal holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 having a maximum maximum of fifty five. The number of directors must be 2.