There are a couple of good the actual reason why it makes ample sense to register your tiny. The first basic reason is to protect one’s own interests and not risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and is also forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes managed their shares to another it’s easier when group is recorded.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, in case business idea is good enough to be converted into a profitable business or not too. And if the answer to the confident and also resounding yes, then it’s the perfect time for in order to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to write 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 grow it, your startup could be registered among the many legal formats in the structure of the company available.
So allow me to first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by only 1 individual. No registration it takes. This is the method to adopt if you should do it yourself and the goal of establishing firm is to achieve a short-term goal. But this puts you prone to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. For a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust within partners. But similar together with proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is single Person Company in that this company is a separate legal entity which in effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 with a maximum upper limit of 150. The number of directors must be 2.