There are a couple of good reasons why it makes ample sense to register your tiny. The first basic reason is to protect one’s own interests by no means risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is opted. 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, just in case a limited company, 1 wishes managed their shares to another it’s easier when company is registered.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or not solely. And if the answer to that is a confident properly resounding yes, then then it’s time for someone to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the actual and when there is want to grow it, your startup can be registered among the many legal formats in the structure associated with company on the market.
So i want to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration is needed. This is the method to if you want to do it yourself and the reason for establishing the organization is gain a short-term goal. But this puts you prone to losing all your 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 a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust concerning the partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a 60 minute Person Company in that your company is really a separate legal entity which effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a company 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 the minimum number of members needed are 7 and there’s really no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.