There are a couple of good good reason that it makes ample sense to register your little. The first basic reason is to 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 close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes to transfer their shares to another it’s easier when group is enrolled.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not solely. 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 new. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of corporation and how i want to expand it, your startup could be registered as among the many legal formats for this structure on the company available.
So allow me to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only individual. No registration is needed. This is the method in order to if you wish to do it all by yourself and the goal of establishing business is to achieve a short-term goal. But this puts you at risk of 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. For a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar using a proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a 60 minute Person Company in that your company is really a separate legal entity within turn effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally prone to lose their personal power.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 along with a maximum upper limit of 45. The number of directors must be 2.