There are several good reasons why it makes ample sense to register your company. The first basic reason is to safeguard one’s own interests as an alternative to risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and is also forced to seal down. Secondly, it is a lot easier 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 enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes managed their shares to another it’s easier when an additional is subscribed.
Very almost always there is a dilemma as to when business should be registered. The answer to which is, primarily, when your business idea is good enough to be converted into a profitable business or not. And if the answer to method has . confident which has a resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the business and how i want to grow it, your startup could be registered among the many legal formats of the structure of a company available.
So let me first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration is needed. This is the method to if you wish to do it alone and the purpose of establishing the organization is to realize 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 even more than two individuals. In the event of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust between the partners. But similar the proprietorship there is a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a Person Company in which the company is a separate legal entity which effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not 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 is no upper limit; the number of directors end up being at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 by using a maximum upper limit of 150. The number of directors must be 2.