There are a few good some reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests and is not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited reputable company. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes managed their shares to another it’s easier when company is registered.
Very there’s always a dilemma as to when organization should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to and also confident and a resounding yes, then it is time for in order to go ahead and register the investment. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the actual and like you would want to grow it, your startup can be registered as the many legal formats belonging to the structure of the company available to you.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by One Person Company Registration in India online particular individual. No registration it will take. This is the method to if for you to do it yourself and the objective of establishing firm is obtain 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 higher than two individuals. In the a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust regarding the partners. But similar to a proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that this company is a separate legal entity which effect protects the owner from being personally subject to any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 with a maximum upper limit of 50. The number of directors must be 2.