There are several good some reasons why it makes ample sense to register your little. The first basic reason is to safeguard one’s own interests and is not risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when company is recorded.
Very there’s always a dilemma as to when organization 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 solely. And if the answer to that is a confident and a resounding yes, then it’s time for in order to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the actual and when there is want to expand it, your startup could be registered as one of the many legal formats of the structure in a company available.
So let me first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only individual. No registration is needed. This is the method in order to if you wish to do it all by yourself and the purpose of establishing the organization is obtain a short-term goal. But this puts you prone to losing your entire 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, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust in between the partners. But similar using a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a single Person Company in that the company is really a separate legal entity within turn effect protects the owner from being personally liable for any losses.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 by using a maximum maximum of 50. The number of directors must be 2.