There are several good the actual reason why it makes ample sense to register your company. The first basic reason is to safeguard one’s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and and that is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if the company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes to transfer their shares to another it’s easier when company is registered.
Very there’s always a dilemma as to when a lot more claims should be registered. The answer 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 and also resounding yes, then it is time for one to go ahead and register the international. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of corporation and like you would want to grow it, your startup could be registered as among the many legal formats for this structure on the company accessible to you.
So allow me to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only individual. No registration it takes. This is the method to adopt if for you to do it on your own and the objective of establishing the company is obtain a short-term goal. But this puts you at risk of losing your entire 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 case of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust within partners. But similar the proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a one Person Company in that this company can be a separate legal entity which effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 having a maximum maximum of corporation. The number of directors must be 2.