There are several good some reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited reputable company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes managed their shares to another it’s easier when company is subscribed.
Very almost always there is a dilemma as to when organization should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or not. And if the answer to method has . confident which has a resounding yes, then it’s time for in order to go ahead and register the startup. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the organization and when there is want to flourish it, your startup could be registered as the many legal formats in the structure on the company open to you.
So i want to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by 1 individual. No registration it takes. This is the method to be able to if you want to do it for yourself and the purpose of establishing business is to achieve 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. You should a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust within partners. But similar together with proprietorship you will find a 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 often a separate legal entity which in effect protects the owner from being personally accountable for any loss.
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 wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 using a maximum maximum of 50. The number of directors must be 2.