There are many good main reasons why it makes ample sense to register your specialist. The first basic reason is to safeguard one’s own interests and not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited firm. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes to transfer their shares to another it’s easier when the company is recorded.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, if your business idea is good enough to be converted to a profitable business or never ever. And if the answer to the confident properly resounding yes, then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to be expanded it, your startup can be registered as the many legal formats for this structure associated with company available to you.
So let me first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company managed or run by just one individual. No registration it will take. This is the method to be able to if you wish to do it yourself and the reason for establishing the organization is obtain a short-term goal. But this puts you at risk of losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. You should a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust concerning the partners. But similar using a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is single Person Company in that the company is often a separate legal entity within turn effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally liable to lose their personal holdings.
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 connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 along with a maximum upper limit of fifty five. The number of directors must be 2.