There are a couple of good some reasons why it makes ample sense to register your tiny. The first basic reason is to guard one’s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is easier 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 potentially a limited firm. (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 group is recorded.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, if your 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 also resounding yes, then then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the actual and a method to want to expand it, your startup could be registered as the many legal formats in the structure on the company available.
So i want to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only 1 individual. No registration it will take. This is the method in order to if you want to do it on your own and the goal of establishing the company is to attain a short-term goal. But this puts you prone to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the case of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust regarding the partners. But similar in order to some proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a one Person Company in that the company is often a separate legal entity within turn effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally liable to lose their personal holdings.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 by using a maximum maximum of 150. The number of directors must be 2.