There are a few good good reason that it makes ample sense to register your little. The first basic reason is to guard one’s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is subscribed. 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, in case of a limited company, if one wishes managed their shares to another it’s easier when company is subscribed.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to that is a confident too resounding yes, then then it’s time for one to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the business and a method to want to inflate it, your startup could be registered as the many legal formats of the structure of the company available to you.
So permit me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by one particular individual. No registration becomes necessary. This is the method to be able to if you wish to do it alone and the goal of establishing the company is to realize a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. You should a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust between the partners. But similar in order to some proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is single Person Company in which the company is a separate legal entity which in effect protects the owner from being personally to blame for any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally prone to lose their personal power.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 having a maximum upper limit of corporation. The number of directors must be 2.