There are many good some reasons why it makes ample sense to register your company. The first basic reason is guard one’s own interests but not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and is also forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is accredited. 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, just in case a limited company, 1 wishes to transfer their shares to another it’s easier when the company is registered.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, if your business idea is good enough to be converted to a profitable business or not solely. And if the answer to the confident and also resounding yes, then it’s time for in order to go ahead and register the international. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the organization and a method to want to flourish it, your startup could be registered as the many legal formats in the structure associated with company on the market.
So let me first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration becomes necessary. This is the method to if for you to do it alone and the purpose of establishing vehicle is to realize a short-term goal. But this puts you at risk to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the case of a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust concerning the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a single Person Company in how the company is really a separate legal entity that effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealth.
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 number of directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 with a maximum upper limit of 45. The number of directors must be 2.