There are a few good some reasons why it makes ample sense to register your specialist. The first basic reason is to safeguard one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when the company is recorded.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not. And if the answer to that is a 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’s usually beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and the way you want to be expanded it, your startup can be registered as one of the many legal formats of the structure in a company accessible to you.
So let me first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by one particular individual. No registration it takes. This is the method in order to if you must do it on your own and the purpose of establishing the company is to realize a short-term goal. But this puts you at risk to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. For a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust in between the partners. But similar together with proprietorship thankfully 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 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 best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 having a maximum upper limit of 45. The number of directors must be 2.