There are many good good reason that it makes ample sense to register your network. The first basic reason is to protect one’s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and also is forced to seal down. Secondly, it is simpler 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 potentially a limited firm. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes to transfer their shares to another it’s easier when the company is recorded.
Very often there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when the business idea is good enough to be converted into a profitable business or truly. And if the answer to the confident which has a resounding yes, then it’s the perfect time for someone to go ahead and register the investment. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the organization and the way you want to flourish it, your startup could be registered as among the many legal formats with the structure on the company on the market.
So i want to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only 1 individual. No registration is actually required. This is the method to adopt if for you to do it alone and the objective of establishing the company is obtain a short-term goal. But this puts you at risk of losing complete 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 a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is single Person Company in which the company is a separate legal entity within turn effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the 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 associated with directors end up being at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 using a maximum upper limit of 50. The number of directors must be 2.