There are some good reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests and not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and also is forced to close down. Secondly, it is simpler 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 and even limited reputable company. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is enrolled.
Very often there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to and also confident and a resounding yes, then then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to be expanded it, your startup can be registered as among the many legal formats of the structure of the company on the market.
So permit me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by one particular individual. No registration it takes. This is the method in order to if you should do it all by yourself and the purpose of establishing the organization is to realize a short-term goal. But this puts you at risk to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. You should a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust regarding the partners. But similar in order to some proprietorship there is a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is single Person Company in that the company can be a separate legal entity that effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 with a maximum upper limit of 150. The number of directors must be 2.