There are some good good reason that it makes ample sense to register your company. The first basic reason is to protect one’s own interests but not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and is forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited group. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when company is subscribed.
Very often there is a dilemma as to when the company 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 truly. And if the answer to method has . confident which has a resounding yes, then it is time for someone to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial find a quote as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to expand it, your startup could be registered as among the many legal formats belonging to the structure in a company available.
So permit me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration is actually required. This is the method to be able to if you want to do it on your own and the purpose of establishing the organization is to attain a short-term goal. But this puts you prone to losing every 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 involving trust concerning the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is single Person Company in that the company is really a separate legal entity which effect protects the owner from being personally responsible for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 by using a maximum maximum of 50. The number of directors must be 2.