There are many good reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests as an alternative to risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and which forced to close 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 group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is registered.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to and also confident too resounding yes, then it’s 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 important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to grow it, your startup can be registered among the many legal formats with the structure of a company available to you.
So i want to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by just Online One Person Company Registration in India individual. No registration it takes. This is the method to if you must do it alone and the objective of establishing business is to achieve a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. You should a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust between the partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that this company is really a separate legal entity which usually effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 with a maximum maximum of 150. The number of directors must be 2.