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 as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes managed their shares to another it’s easier when enterprise is subscribed.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is good enough to be converted into a profitable business or never ever. And if the answer to the confident and also resounding yes, then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of enterprise enterprise and a method to want to flourish it, your startup could be registered as Online One Person Company Registration in India of the many legal formats of the structure associated with company available.
So let me first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration is needed. This is the method to be able to if for you to do it yourself and the goal of establishing the organization is gain a short-term goal. But this puts you liable to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust within partners. But similar in order to some proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that this company is often a separate legal entity which in effect protects the owner from being personally to blame for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally prone to lose their personal power.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 along with a maximum maximum of 150. The number of directors must be 2.