There are many good reasons why it makes ample sense to register your tiny. The first basic reason is guard one’s own interests and is not risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is much 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 even a limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is subscribed.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, if your business idea is good enough to be converted to a profitable business or not too. And if the answer to that is a confident and a resounding yes, then it’s time for someone to go ahead and register the international. And as mentioned earlier on it’s always beneficial find a quote as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the organization and the way you want to expand it, your startup can be registered as one of the many legal formats with the structure of the company available.
So let me first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by One Person Company Registration in India online particular individual. No registration is needed. This is the method to if for you to do it for yourself and the reason for establishing business is gain a short-term goal. But this puts you at risk to losing your entire 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, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a involving trust concerning the partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in how the company is often a separate legal entity which in effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 with a maximum maximum of fifty five. The number of directors must be 2.