There are a couple of good reasons why it makes ample sense to register your company. The first basic reason is guard one’s own interests as an alternative to risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and is forced to close down. Secondly, it is much easier 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 firm. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes to transfer their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted to a profitable business or not too. 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 start-up. And as mentioned earlier on it will be beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and how i want to flourish it, your startup can be registered among the many legal formats belonging to the structure on the company available.
So ok, i’ll first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only 1 individual. No registration becomes necessary. This is the method to if you wish to do it alone and the objective of establishing vehicle is to attain a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more 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 demands a associated with trust between the partners. But similar in order to some proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a single Person Company in which the company can be a separate legal entity which in effect protects the owner from being personally liable for any losses.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 using a maximum upper limit of 45. The number of directors must be 2.