There are several good main reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests by no means risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes managed their shares to another it’s easier when the company is authorized.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, when your business idea is good enough to be converted into a profitable business or truly. And if the answer to that is a confident properly resounding yes, then it is time for in order to go ahead and register the new. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the actual and the way you want to inflate it, your startup could be registered as among the many legal formats in the structure associated with company open to you.
So let me first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration becomes necessary. This is the method to if you wish to do it alone and the objective of establishing vehicle is to achieve a short-term goal. But this puts you subject to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the case of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust in between the partners. But similar the proprietorship you will find a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a 60 minute Person Company in that your company is often a separate legal entity which usually effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 having a maximum maximum of 50. The number of directors must be 2.