There are many good some reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard one’s own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is much simpler 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 firm. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes to transfer their shares to another it’s easier when the company is enrolled.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident and a resounding yes, then then it’s time for one to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the actual and like you would want to flourish it, your startup could be registered as one of the many legal formats of the structure of the company available.
So i want to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only individual. No registration it will take. This is the method to if you must do it for yourself and the goal of establishing vehicle is obtain a short-term goal. But this puts you at risk to losing your own 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 being laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust in between the partners. But similar using a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a Person Company in that the company can be a separate legal entity which usually effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally liable to lose their personal holdings.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 along with a maximum maximum of corporation. The number of directors must be 2.