There are several good some reasons why it makes ample sense to register your little. The first basic reason is to protect one’s own interests and not risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes to transfer their shares to another it’s easier when an additional is enrolled.
Very often there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to the confident and a resounding yes, then it’s time for someone to go ahead and register the new. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of corporation and how i want to be expanded it, your startup can be registered as one of the many legal formats for this structure in a company available to you.
So i want to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only individual. No registration becomes necessary. This is the method in order to if you want to do it on your own and the objective of establishing vehicle is to attain a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the event of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar to a proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a Person Company in which the company is really a separate legal entity within turn effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners aren’t personally liable to lose their personal power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 having a maximum maximum of 150. The number of directors must be 2.