There are a few good main reasons why it makes ample sense to register your company. The first basic reason is guard one’s own interests by no means risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited reputable company. (These are terms which have been described later on). Another valid reason is, from 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 a lot more claims should be registered. The answer to which is, primarily, if your business idea is sufficiently good 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 the perfect time for one to go ahead and register the investment. 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 corporation and a method to want to flourish it, your startup can be registered as one of the many legal formats in the structure in a company available to you.
So i want to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company managed or run by only 1 individual. No registration it takes. This is the method to be able to if for you to do it yourself and the purpose of establishing firm is to realize a short-term goal. But this puts you subject to losing all your 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 event of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust between the partners. But similar the proprietorship thankfully risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a Person Company in which the company is often a separate legal entity which usually effect protects the owner from being personally liable 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 liable to lose their personal holdings.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 by using a maximum maximum of corporation. The number of directors must be 2.