There are some good good reason that it makes ample sense to register your little. The first basic reason is to protect one’s own interests and is not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes managed their shares to another it’s easier when an additional is recorded.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to that is a confident properly resounding yes, then it is time for someone to go ahead and register the new. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of corporation and a method to want to be expanded it, your startup could be registered among the many legal formats for this structure on the company accessible to you.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by just one individual. No registration it takes. This is the method to be able to if you must do it yourself and the goal of establishing firm is to achieve a short-term goal. But this puts you at risk 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 event of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust regarding the partners. But similar to a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a single Person Company in that your company is really a separate legal entity which effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), whereas the 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 wide range.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 along with a maximum maximum of 50. The number of directors must be 2.