There are many good main reasons why it makes ample sense to register your company. The first basic reason is preserve one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes to transfer their shares to another it’s easier when an additional 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 good enough to be converted to a profitable business or never ever. And if the answer to method has . confident too resounding yes, then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the organization and the way you want to flourish it, your startup could be registered among the many legal formats with the structure on the company available to you.
So ok, i’ll first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by 1 individual. No registration it takes. This is the method in order to if for you to do it on your own and the purpose of establishing vehicle is to attain 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 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 demands a regarding trust concerning 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 single Person Company in how the company is really a separate legal entity that effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the number of directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 with a maximum maximum of 45. The number of directors must be 2.