There are a few good good reason that it makes ample sense to register your little. The first basic reason is to 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 seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes managed their shares to another it’s easier when an additional is registered.
Very almost always there is a dilemma as to when organization should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to the confident properly resounding yes, then then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to flourish it, your startup could be registered as among the many legal formats belonging to the structure on the company open to you.
So allow me to first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration is needed. This is the method in order to if for you to do it for yourself and the goal of establishing the company is to achieve a short-term goal. But this puts you subject to losing your own 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 event of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust regarding the partners. But similar using a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a 60 minute Person Company in that the company can be a separate legal entity within turn effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally prone to lose their personal power.
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 quantity of directors end up being 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.