There are many good some reasons why it makes ample sense to register your specialist. The first basic reason is to guard one’s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes to transfer 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 your business idea is good enough to be converted to a profitable business or not. And if the answer to that is a confident too resounding yes, then it’s the perfect time for someone to go ahead and register the start-up. And as mentioned earlier on it is always beneficial to write it as a preventive measure, before important work 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 of the company open to you.
So i want to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by 1 individual. No registration becomes necessary. This is the method to be able to if you want to do it for yourself and the reason for establishing the organization is gain a short-term goal. But this puts you subject to losing all your 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, as being laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust regarding the partners. But similar in order to some proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a 60 minute Person Company in how the company is often a separate legal entity which usually effect protects the owner from being personally liable for any cutbacks.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally prone to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 using a maximum upper limit of 45. The number of directors must be 2.