There are some good main reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard one’s own interests but not risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is 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 or maybe limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes managed their shares to another it’s easier when the company is registered.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is good enough to be converted into a profitable business or never ever. And if the answer to the confident which has a resounding yes, then it’s time for someone to go ahead and register the startup. 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 type and size of enterprise enterprise and when there is want to expand it, your startup can be registered as among the many legal formats for this structure on the company open to you.
So let me first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by only 1 individual. No registration becomes necessary. This is the method to adopt if for you to do it for yourself and the objective of establishing business 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 or even more than two individuals. For a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust within partners. But similar the proprietorship there could risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a Person Company in that the company is really a separate legal entity that effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally prone to lose their personal power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 by using a maximum upper limit of fifty five. The number of directors must be 2.