There are many good main reasons why it makes ample sense to register your specialist. The first basic reason is to guard one’s own interests and is not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is much 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 reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when an additional is subscribed.
Very there’s always a dilemma as to when organization should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to method has . confident and a resounding yes, then it’s time for one to go ahead and register the new. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to inflate it, your startup can be registered as one of the many legal formats belonging to the structure in a company available to you.
So permit me to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only 1 individual. No registration is needed. This is the method to be able to if you want to do it alone and the purpose of establishing firm is to realize a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the case of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust regarding the partners. But similar using a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a 60 minute Person Company in which the company can be a separate legal entity which usually effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners are not personally liable to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 having a maximum maximum of fifty five. The number of directors must be 2.