There are a couple of good some reasons why it makes ample sense to register your company. The first basic reason is to guard one’s own interests by no means risk personal assets to the point of facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited group. (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 enrolled.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, if your business idea is good enough to be converted into a profitable business or not too. And if the answer to that is a confident which has a resounding yes, then it is time for one 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 size and type of the business and the way you want to expand it, your startup could be registered among the many legal formats with the structure of a company open to you.
So permit me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration is actually required. This is the method to adopt if you wish to do it for yourself and the reason for establishing business is gain a short-term goal. But this puts you liable 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 aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust in between the partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a one Person Company in that this company is often a separate legal entity which usually effect protects the owner from being personally liable 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 corporation and the partners are not personally liable to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 by using a maximum upper limit of 50. The number of directors must be 2.