There are some good main reasons why it makes ample sense to register your company. The first basic reason is guard one’s own interests and is not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes to transfer their shares to another it’s easier when enterprise is subscribed.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to that is a confident too resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of enterprise enterprise and the way you want to be expanded it, your startup could be registered among the many legal formats for this structure in a company available.
So permit me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only 1 individual. No registration is needed. This is the method in order to if you wish to do it for yourself and the reason for establishing business is to achieve a short-term goal. But this puts you prone 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 a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust concerning the partners. But similar in order to some proprietorship thankfully risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a Person Company in how the company is often a separate legal entity which in effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 along with a maximum maximum of fifty five. The number of directors must be 2.