There are several good reasons why it makes ample sense to register your little. The first basic reason is 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 and that is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is subscribed. 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, if wishes to transfer their shares to another it’s easier when an additional is registered.
Very almost always there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to that is a confident and a resounding yes, then then it’s time for someone to go ahead and register the new. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the actual and how i want to expand it, your startup can be registered among the many legal formats for this structure on the company open to you.
So permit me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by one particular individual. No registration it takes. This is the method to be able to if you wish to do it all by yourself and the reason for establishing the company is to attain a short-term goal. But this puts you at risk to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust concerning the partners. But similar together with proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a single Person Company in which the company is really a separate legal entity which effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally prone 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 associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum upper limit of fifty five. The number of directors must be 2.