There are a few good some reasons why it makes ample sense to register your company. The first basic reason is to guard one’s own interests and is not risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and also is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if an additional is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes to transfer their shares to another it’s easier when group is enrolled.
Very often there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to that is a confident and also resounding yes, then then it’s time for someone to go ahead and register the international. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of corporation and a method to want to flourish it, your startup can be registered among the many legal formats in the structure of a company on the market.
So permit me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by one particular individual. No registration is needed. This is the method in order to if you must do it yourself and the purpose of establishing business is gain a short-term goal. But this puts you at risk of 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, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust regarding the partners. But similar the proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is single Person Company in how the company can be a separate legal entity that effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally liable to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 with a maximum maximum of fifty five. The number of directors must be 2.