There are several good good reason that it makes ample sense to register your specialist. The first basic reason is to guard one’s own interests and not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes to transfer their shares to another it’s easier when the company is enrolled.
Very almost always there is 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 to a profitable business or not. And if the answer to method has . confident which has a resounding yes, then it’s the perfect time for one to go ahead and register the start-up. And as mentioned earlier on it will be beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to grow it, your startup can be registered as one of the many legal formats in the structure of the company accessible to you.
So allow me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by just one individual. No registration becomes necessary. This is the method in order to if you must do it for yourself and the reason for establishing business is gain a short-term goal. But this puts you liable to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the case of a Partnership firm, just 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 thankfully risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a Person Company in that your company is often a separate legal entity which effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally liable to lose their personal power.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 along with a maximum maximum of 45. The number of directors must be 2.