There are a few good main reasons why it makes ample sense to register your company. The first basic reason is preserve one’s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if an additional is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited reputable company. (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 subscribed.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to that is a confident which has a resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the organization and how i want to be expanded it, your startup can be registered as one of the many legal formats in the structure of the company available.
So allow me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by one particular individual. No registration it takes. This is the method to be able to if for you to do it alone and the reason for establishing the organization is to achieve a short-term goal. But this puts you subject 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. You should a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust between the partners. But similar in order to some proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a single Person Company in that the company is really a separate legal entity that effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally liable to lose their personal power.
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 associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 with a maximum maximum of corporation. The number of directors must be 2.