There are a couple of good good reason that it makes ample sense to register your little. The first basic reason is preserve one’s own interests and not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is much simpler 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 firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when company is authorized.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not. And if the answer to the confident properly resounding yes, then it is time for someone to go ahead and register the new. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the actual and like you would want to inflate it, your startup can be registered as among the many legal formats with the structure in a company available.
So ok, i’ll first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration it takes. This is the method to be able to if you should do it on your own and the reason for establishing business is to attain a short-term goal. But this puts you at risk of losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. You should a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar to a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a Person Company in that the company is a separate legal entity that effect protects the owner from being personally liable for any loss.
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 prone to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.