There are several good main reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests as an alternative to risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes managed their shares to another it’s easier when group is enrolled.
Very almost always there is a dilemma as to when organization should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to and also confident too resounding yes, then then it’s time for in order to go ahead and register the international. And as mentioned earlier on it is always beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the actual and like you would want to grow it, your startup can be registered as one of the many legal formats of the structure in a company on the market.
So let me first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only 1 individual. No registration it takes. This is the method to if you must do it yourself and the goal of establishing the organization 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 or higher than two individuals. In the a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust concerning the partners. But similar in order to some proprietorship there could risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is single Person Company in how the company is often a separate legal entity which in effect protects the owner from being personally accountable 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 corporation and the partners aren’t personally prone to lose their personal wealthiness.
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 associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 with a maximum upper limit of 150. The number of directors must be 2.