There are several good good reason that it makes ample sense to register your specialist. The first basic reason is to safeguard one’s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited enterprise. (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 company should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not. And if the answer to that is a confident which has a resounding yes, then then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the organization and when there is want to grow it, your startup could be registered as one of the many legal formats in the structure of a company available.
So allow me to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by 1 individual. No registration is needed. This is the method in order to if you want to do it alone and the purpose of establishing the organization is to attain a short-term goal. But this puts you liable 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. You should a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust between the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a single Person Company in that this company is a separate legal entity that effect protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 with a maximum upper limit of fifty five. The number of directors must be 2.