There are several good some reasons why it makes ample sense to register your specialist. The first basic reason is to protect one’s own interests and is not risk personal assets 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 the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited reputable company. (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 enterprise is enrolled.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, when the business idea is good enough to be converted to a profitable business or not too. And if the answer to the confident properly resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and how i want to expand it, your startup could be registered as the many legal formats belonging to the structure of the company open to you.
So i want to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by one particular individual. No registration it will take. This is the method to if for you to do it all by yourself and the reason for establishing vehicle is obtain a short-term goal. But this puts you prone to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the case of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust regarding the partners. But similar the proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is single Person Company in which the company is really a separate legal entity within turn effect protects the owner from being personally accountable for any losses.
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 liable to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 having a maximum upper limit of 150. The number of directors must be 2.