There are many good the actual reason 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 assets to the stage that facing bankruptcy in case your business faces an emergency and also is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is disclosed. 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 to transfer their shares to another it’s easier when company is enrolled.
Very almost always there is a dilemma as to when business should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not. And if the answer to the confident and a resounding yes, then it’s the perfect time for someone to go ahead and register the startup. And as mentioned earlier on it is always beneficial find a quote as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and when there is want to expand it, your startup could be registered as among the many legal formats with the structure in a company open 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 managed or run by Online One Person Company Registration in India particular individual. No registration becomes necessary. This is the method in order to if you should do it all by yourself and the objective of establishing business is obtain a short-term goal. But this puts you at risk to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a involving trust within partners. But similar together with proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in how the company is often a separate legal entity which in effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 along with a maximum upper limit of corporation. The number of directors must be 2.