There are many good reasons why it makes ample sense to register your little. The first basic reason is preserve one’s own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes managed their shares to another it’s easier when the company is recorded.
Very almost always there is a dilemma as to when business should be registered. The answer 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 that is a confident and a resounding yes, then then it’s time for someone to go ahead and register the start-up. 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 the business and like you would want to inflate it, your startup can be registered among the many legal formats for this structure associated with company available.
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 only individual. No registration it will take. This is the method to be able to if you must do it yourself and the purpose of establishing vehicle is obtain a short-term goal. But this puts you prone to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. You should a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust concerning the partners. But similar using a proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is single Person Company in which the company can be a separate legal entity that effect protects the owner from being personally responsible for any obligations.
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 are not personally liable to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 along with a maximum maximum of 50. The number of directors must be 2.