There are several good some reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests and not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and is forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited group. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes to transfer their shares to another it’s easier when company is registered.
Very almost always there is a dilemma as to when organization should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not. And if the answer to the confident properly resounding yes, 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 will be saddled with liabilities.
Depending upon the type and size of the business and like you would want to inflate it, your startup could be registered as one of the many legal formats in the structure of the company on the market.
So let me first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only individual. No registration becomes necessary. This is the method to if you want to do it for yourself and the reason for establishing firm is to achieve a short-term goal. But this puts you prone to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust concerning the partners. But similar the proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is single Person Company in how the company is a separate legal entity within turn 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 that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 by using a maximum upper limit of 45. The number of directors must be 2.