There are a couple of good main reasons why it makes ample sense to register your little. The first basic reason is to safeguard one’s own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited 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 the company is enrolled.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, if your business idea is good enough to be converted into a profitable business or not too. And if the answer to and also confident and a resounding yes, then it is time for someone to go ahead and register the new. And as mentioned earlier on it is always beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to grow it, your startup can be registered among the many legal formats with the structure of a company on the market.
So let me first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only individual. No registration is needed. This is the method to be able to if you wish to do it alone and the objective of establishing vehicle is obtain a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the event of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust in between the partners. But similar together with proprietorship you will find a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is single Person Company in that your company is a separate legal entity which effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally liable to lose their personal wealth.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 along with a maximum maximum of corporation. The number of directors must be 2.