There are many good some reasons why it makes ample sense to register your specialist. The first basic reason is guard one’s own interests and is not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited group. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when group is subscribed.
Very almost always there is a dilemma as to when business should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or never ever. And if the answer to that is a confident and a resounding yes, then then it’s time for someone to go ahead and register the new. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the actual and the way you want to expand it, your startup could be registered as among the many legal formats in the structure on the company available.
So permit me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. That’s a company managed or run by just one individual. No registration it will take. This is the method to be able to if for you to do it for yourself and the goal of establishing the company is gain 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. For a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust in between the partners. But similar using a proprietorship there is a risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a one Person Company in which the company is really a separate legal entity which usually effect protects the owner from being personally subject to any cutbacks.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners are not personally liable to lose their personal holdings.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 by using a maximum maximum of 150. The number of directors must be 2.