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 and is not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is registered. 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, 1 wishes managed their shares to another it’s easier when company is enrolled.
Very often there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident and a resounding yes, then it’s the perfect time for in order to go ahead and register the startup. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of corporation and like you would want to grow it, your startup can be registered among the many legal formats belonging to the structure in a company open to you.
So permit me to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by one particular individual. No registration is actually required. This is the method in order to if you must do it alone and the objective of establishing the company is to realize 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 more than two individuals. In the event of a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust concerning the partners. But similar to a proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a 60 minute Person Company in how the company can be a separate legal entity within turn effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally prone to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 with a maximum maximum of corporation. The number of directors must be 2.