There are several good the actual reason 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 is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes managed their shares to another it’s easier when the company is subscribed.
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 not solely. And if the answer to that is a confident which has a resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it’s always beneficial find a quote as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to inflate it, your startup could be registered as one of the many legal formats for this structure on the company accessible to you.
So allow me to first educate you with the mandatory 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 to be able to if you wish to do it all by yourself and the purpose of establishing vehicle is to realize a short-term goal. But this puts you liable to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. You should a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust in between the partners. But similar in order to some proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a one Person Company in that the company is a separate legal entity which usually effect protects the owner from being personally to blame for any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally prone 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 is no upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 with a maximum maximum of 150. The number of directors must be 2.