There are several good reasons why it makes ample sense to register your network. The first basic reason is to guard one’s own interests as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this 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, in case of a limited company, if wishes to transfer their shares to another it’s easier when the company is authorized.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not solely. And if the answer to and also confident properly resounding yes, then it’s the perfect time for one to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and the way you want to inflate it, your startup can be registered as among the many legal formats with the structure associated with company available.
So ok, i’ll first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by just one individual. No registration becomes necessary. This is the method to adopt if you wish to do it alone and the reason for establishing firm is to realize 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 event of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust within partners. But similar in order to some proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a one Person Company in how the company is often a separate legal entity which usually effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum upper limit of 50. The number of directors must be 2.