There are some good reasons why it makes ample sense to register your little. The first basic reason is preserve one’s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited reputable company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes managed their shares to another it’s easier when the company is subscribed.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not. And if the answer to that is a confident which has a resounding yes, then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the actual and when there is want to grow it, your startup could be registered as among the many legal formats belonging to the structure in a company accessible to you.
So ok, i’ll first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only individual. No registration it will take. This is the method to if you should do it for yourself and the objective of establishing the organization is to realize a short-term goal. But this puts you at risk to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the case of a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust within partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is single Person Company in that the company is a separate legal entity which usually effect protects the owner from being personally to blame for any obligations.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 by using a maximum maximum of 150. The number of directors must be 2.