There are a couple of good main reasons why it makes ample sense to register your little. The first basic reason is to protect one’s own interests by no means risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes managed their shares to another it’s easier when group is recorded.
Very there’s always a dilemma as to when business should be registered. The answer 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 the confident which has a resounding yes, then it is time for someone to go ahead and register the international. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of enterprise enterprise and a method to want to be expanded it, your startup could be registered as one of the many legal formats of the structure in a company available.
So permit me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by 1 individual. No registration becomes necessary. This is the method to adopt if you wish to do it on your own and the reason for establishing the organization is to attain a short-term goal. But this puts you subject to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. You should a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust regarding the partners. But similar to a proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a 60 minute Person Company in that this company is really a separate legal entity which effect protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal 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 the minimum number of needed are 7 using a maximum upper limit of 150. The number of directors must be 2.