There are several good reasons why it makes ample sense to register your tiny. The first basic reason is to guard one’s own interests and not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and and that is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or 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 an additional is subscribed.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to the confident too resounding yes, then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of corporation and when there is want to be expanded it, your startup can be registered as the many legal formats in the structure in a company available to you.
So permit me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by one particular individual. No registration it will take. This is the method to be able to if you should do it on your own and the goal of establishing firm is gain a short-term goal. But this puts you liable to losing complete 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 case of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust in between the partners. But similar using a proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a one Person Company in how the company is often a separate legal entity which effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 along with a maximum upper limit of corporation. The number of directors must be 2.