There are many good main reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests by no means risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and also is forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited reputable company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes managed their shares to another it’s easier when company is recorded.
Very there’s always a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to method has . confident and a resounding yes, then it is time for in order to go ahead and register the new. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of corporation and the way you want to inflate it, your startup can be registered as among the many legal formats belonging to the structure of a company available.
So permit me to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration is needed. This is the method to be able to if you should do it alone and the reason for establishing the organization is to attain 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. In the case of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust in between the partners. But similar to a proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is single Person Company in that this company can be a separate legal entity which usually effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very 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 isn’t a upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 by using a maximum maximum of corporation. The number of directors must be 2.