There are many good good reason that it makes ample sense to register your company. The first basic reason is to guard one’s own interests by no means risk personal assets to the aim of facing bankruptcy in case your business faces an emergency 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 registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited firm. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes managed their shares to another it’s easier when the company is subscribed.
Very almost always there is a dilemma as to when business should be registered. The answer 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 that is a confident properly resounding yes, then it’s the perfect time for one to go ahead and register the startup. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of corporation and like you would want to inflate it, your startup can be registered as the many legal formats for this structure of a company available to you.
So let me first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by one particular individual. No registration it takes. This is the method to adopt if for you to do it alone and the purpose of establishing firm is to achieve a short-term goal. But this puts you subject to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the event of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust in between the partners. But similar using a proprietorship there is a risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a one Person Company in that your company is a separate legal entity that effect protects the owner from being personally subject to any damages.
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 wealth.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 by using a maximum upper limit of fifty five. The number of directors must be 2.