There are many good some reasons why it makes ample sense to register your company. The first basic reason is preserve one’s own interests as an alternative to risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to seal 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 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 enterprise is authorized.
Very almost always there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, in case business idea is good enough to be converted into a profitable business or not solely. And if the answer to that is a confident properly resounding yes, then it’s time for one to go ahead and register the international. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and the way you want to expand it, your startup can be registered as one of the many legal formats with the structure associated with company available to you.
So ok, i’ll first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only individual. No registration is actually required. This is the method to be able to if you should do it for yourself and the purpose of establishing vehicle is obtain a short-term goal. But this puts you prone to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. For a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar in order to some proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a one Person Company in that your company is really a separate legal entity which usually effect protects the owner from being personally to blame for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 along with a maximum maximum of 50. The number of directors must be 2.