There are some good good reason that it makes ample sense to register your company. The first basic reason is preserve one’s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and also is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited 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 enterprise is subscribed.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or not too. And if the answer to that is a confident properly resounding yes, then it’s time for one to go ahead and register the startup. And as mentioned earlier on it’s always beneficial find a quote as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of corporation and like you would want to grow it, your startup could be registered among the many legal formats with the structure associated with company on the market.
So let me first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only individual. No registration it will take. This is the method to adopt if you want to do it yourself and the goal of establishing firm is to attain 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 higher than two individuals. In the case of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust within partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a single Person Company in that the company can be a separate legal entity which usually effect protects the owner from being personally to blame for any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a supplier 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’s really no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 by using a maximum upper limit of corporation. The number of directors must be 2.