There are many good some reasons why it makes ample sense to register your network. The first basic reason is to guard one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if firm is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when the company is subscribed.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to that is a confident too resounding yes, then then it’s time for someone to go ahead and register the startup. And as mentioned earlier on it is always beneficial find a quote as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to flourish it, your startup can be registered as the many legal formats for this structure in a company available.
So let me first fill you in 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 takes. This is the method to adopt if you want to do it all by yourself and the purpose of establishing firm is gain a short-term goal. But this puts you at risk to losing complete 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, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust between the partners. But similar the proprietorship answer to your problem risk of losing personal belongings 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 effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 using a maximum maximum of 150. The number of directors must be 2.