There are some good good reason that it makes ample sense to register your little. The first basic reason is preserve one’s own interests and is not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is subscribed. 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, from a limited company, if one wishes to transfer their shares to another it’s easier when group is subscribed.
Very there’s always a dilemma as to when business should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or not. And if the answer to that is a confident too resounding yes, then it is time for in order to go ahead and register the startup. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of corporation and how i want to grow it, your startup can be registered among the many legal formats for this structure of the company accessible to you.
So permit me to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by just one individual. No registration it will take. This is the method to adopt if you should do it yourself and the objective of establishing vehicle is to realize a short-term goal. But this puts you liable to 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. In the case of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust in between the partners. But similar the proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a Online One Person Company Registration in India Person Company in that the company is really a separate legal entity which in effect protects the owner from being personally accountable for any cutbacks.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally liable to lose their personal wide range.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 having a maximum maximum of fifty five. The number of directors must be 2.