There are several good main reasons why it makes ample sense to register your company. The first basic reason is guard one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited group. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes to transfer their shares to another it’s easier when company is recorded.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, if your business idea is good enough to be converted into a profitable business or not. And if the answer to that is a confident properly resounding yes, then it is time for in order to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of corporation and like you would want to be expanded it, your startup could be registered among the many legal formats belonging to the structure of a company accessible to you.
So allow me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by Online One Person Company Registration in India particular individual. No registration is needed. This is the method to be able to if you must do it alone and the purpose of establishing firm is to realize a short-term goal. But this puts you at risk 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. You should a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust concerning the partners. But similar the proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in how the company is a separate legal entity which in effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), that 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 power.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 using a maximum maximum of 50. The number of directors must be 2.