There are some good main 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 a crisis and which forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it’s easier when group is enrolled.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to and also confident and also resounding yes, then then it’s time for one to go ahead and register the new. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the business and the way you want to flourish it, your startup could be registered as among the many legal formats of the structure in a company available.
So permit me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by one particular individual. No registration is actually required. This is the method to be able to if you must do it alone and the goal of establishing the organization is obtain 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, just as the 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 answer to your problem risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a one Person Company in that this company is really a separate legal entity which in effect protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally prone to lose their personal holdings.
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 quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum maximum of fifty five. The number of directors must be 2.