There are many good 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 point of facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is accredited. 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, any time a limited company, if wishes managed their shares to another it’s easier when group is registered.
Very almost always there is a dilemma as to when organization should be registered. The solution to which is, primarily, in case business idea is good enough to be converted into a profitable business or never ever. 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 new. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the actual and a method to want to expand it, your startup could be registered as among the many legal formats with the structure on the company on the market.
So ok, i’ll first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by only individual. No registration is actually required. This is the method to if for you to do it all by yourself and the purpose of establishing the company is obtain a short-term goal. But this puts you at risk of 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 event of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust regarding the partners. But similar together with proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a single Person Company in how the company is often a separate legal entity that effect protects the owner from being personally to blame 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 company and the partners aren’t personally liable to lose their personal wealth.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 along with a maximum maximum of 45. The number of directors must be 2.