There are a couple of good reasons why it makes ample sense to register your network. The first basic reason is to guard one’s own interests but not risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is much easier 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 potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when company is enrolled.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, when the business idea is good enough to be converted into a profitable business or truly. And if the answer to that is a confident which has a resounding yes, then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the organization and how i want to expand it, your startup could be registered as among the many legal formats for this structure of a company open to you.
So allow me to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration it takes. This is the method to if you want to do it for yourself and the purpose of establishing business is to attain a short-term goal. But this puts you prone to 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 a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust concerning the partners. But similar together with proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a one Person Company in how the company is often a separate legal entity that effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally prone to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 along with a maximum maximum of 50. The number of directors must be 2.