There are a few good reasons why it makes ample sense to register your company. The first basic reason is preserve one’s own interests and not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and and that is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if organization is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes managed their shares to another it’s easier when enterprise is registered.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to that is a confident properly resounding yes, then it is time for in order to go ahead and register the new. And as mentioned earlier on it is always beneficial find a quote as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the business and when there is want to expand it, your startup can be registered as the many legal formats in the structure associated with company on the market.
So i want to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by 1 individual. No registration is actually required. This is the method to be able to if for you to do it for yourself and the purpose of establishing firm is to attain a short-term goal. But this puts you prone to losing complete 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 case of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust concerning the partners. But similar using a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a Person Company in that the company can be a separate legal entity within turn effect protects the owner from being personally accountable for any cutbacks.
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 prone 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 is no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 along with a maximum maximum of corporation. The number of directors must be 2.