There are several good some reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests and not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is also forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited firm. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes to transfer their shares to another it’s easier when the company is enrolled.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into 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 new. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of corporation and how i want to expand it, your startup can be registered as among the many legal formats in the structure of the company available to you.
So permit me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by just one individual. No registration becomes necessary. This is the method to adopt if you want to do it on your own and the purpose of establishing the company is obtain a short-term goal. But this puts you prone to losing your own 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, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust between the partners. But similar the proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a single Person Company in that your company is often a separate legal entity which effect protects the owner from being personally accountable 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 business and the partners are not personally liable to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 along with a maximum upper limit of 50. The number of directors must be 2.