There are many good good reason that it makes ample sense to register your specialist. The first basic reason is to guard one’s own interests by no means risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited firm. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes to transfer their shares to another it’s easier when group is recorded.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, if your business idea is good enough to be converted to a profitable business or not. And if the answer to that is a confident and a resounding yes, then it’s time for one to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of corporation and the way you want to inflate it, your startup could be registered as the many legal formats belonging to the structure associated with company on the market.
So ok, i’ll first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by one particular individual. No registration it will take. This is the method in order to if for you to do it alone and the objective of establishing firm is obtain a short-term goal. But this puts you at risk to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the case of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust in between the partners. But similar the proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a Person Company in that your company can be a separate legal entity within turn effect protects the owner from being personally responsible for any cutbacks.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally liable to lose their personal wealthiness.
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 connected with directors end up being at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum maximum of 45. The number of directors must be 2.