There are some good reasons why it makes ample sense to register your little. The first basic reason is to protect one’s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes to transfer their shares to another it’s easier when company is enrolled.
Very there’s always a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to the confident and a resounding yes, then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the business and when there is want to be expanded it, your startup could be registered as the many legal formats of the structure in a company on the market.
So let me first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by just one individual. No registration it takes. This is the method in order to if you wish to do it for yourself and the purpose of establishing the company is to attain a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the event of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust in between the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a 60 minute Person Company in how the company can be a separate legal entity which 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 very best of partnership firm and a business and the partners are not personally liable to lose their personal holdings.
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 must be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 along with a maximum upper limit of 45. The number of directors must be 2.