There are a few good some reasons why it makes ample sense to register your specialist. The first basic reason is guard one’s own interests but not risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and and that is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited 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 the company is enrolled.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, as well as 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 one to go ahead and register the new. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of corporation and like you would want to grow it, your startup could be registered as among the many legal formats in the structure associated with company available to you.
So ok, i’ll first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by only 1 individual. No registration is needed. This is the method to be able to if you wish to do it yourself and the goal of establishing the organization is to achieve a short-term goal. But this puts you subject to losing complete 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 within 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 one Person Company in that the company is a separate legal entity within turn effect protects the owner from being personally to blame for any losses.
d) Limited Liability Partnership (LLP), from where 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 the minimum number of members needed are 7 and there’s really no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 along with a maximum maximum of fifty five. The number of directors must be 2.