There are some good good reason that it makes ample sense to register your little. The first basic reason is guard one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and also 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 accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes managed their shares to another it’s easier when company is registered.
Very there’s always 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 properly resounding yes, then it’s time for one to go ahead and register the startup. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the actual and like you would want to be expanded it, your startup could be registered among the many legal formats for this structure of the company available.
So i want to 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 1 individual. No registration it will take. This is the method in order to if you should do it for 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 higher than two individuals. In the case of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar using a proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is single Person Company in that the company is really a separate legal entity which in effect protects the owner from being personally responsible for any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally prone to lose their personal wealth.
e) Limited Company that’s 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 end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 by using a maximum maximum of 50. The number of directors must be 2.