There are a few 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 point of facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited enterprise. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes managed their shares to another it’s easier when the company is recorded.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, when the business idea is good enough to be converted into a profitable business or never ever. And if the answer to that is a confident and also resounding yes, then it is time for someone to go ahead and register the investment. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the actual and a method to want to expand it, your startup could be registered among the many legal formats of the structure in a company available to you.
So let me first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration it will take. This is the method in order to if you should do it yourself and the objective of establishing firm is obtain a short-term goal. But this puts you at risk to losing every 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 aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust regarding the partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a one Person Company in that this company is often a separate legal entity which usually effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation 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 minimal number of members needed are 7 and there’s really no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum upper limit of 45. The number of directors must be 2.