There are many good some reasons 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 belongings to the point of facing bankruptcy in case your business faces an emergency and also is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes managed their shares to another it’s easier when company is registered.
Very often there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when the business idea is good enough to be converted into a profitable business or not too. And if the answer to and also confident and also resounding yes, then it’s time for one to go ahead and register the startup. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the actual and when there is want to be expanded it, your startup can be registered among the many legal formats with the structure associated with company available.
So permit me to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only individual. No registration it takes. This is the method to if you wish to do it for yourself and the goal of establishing the organization is to realize a short-term goal. But this puts you liable to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the event of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust between the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a Person Company in which the company is really a separate legal entity that effect protects the owner from being personally accountable for any cutbacks.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally prone to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 with a maximum maximum of 45. The number of directors must be 2.