There are a few good reasons why it makes ample sense to register your little. The first basic reason is preserve one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes managed their shares to another it’s easier when an additional is recorded.
Very often there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, in case business idea is good enough to be converted to a profitable business or not. And if the answer to method has . confident and also resounding yes, then then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it is always beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and a method to want to grow it, your startup can be registered as the many legal formats of the structure on the company available.
So i want to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration is needed. This is the method to be able to if for you to do it yourself and the reason for establishing the company is obtain a short-term goal. But this puts you liable to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. You should a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust in between the partners. But similar together with proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a one Person Company in which the company can be a separate legal entity which in effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally prone to lose their personal holdings.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum maximum of 45. The number of directors must be 2.