There are many good good reason that it makes ample sense to register your network. The first basic reason is to protect one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when the company is recorded.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, in case business idea is good enough to be converted to a profitable business or not too. And if the answer to that is a confident which has a resounding yes, then it’s time for someone to go ahead and register the new. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to flourish it, your startup could be registered among the many legal formats belonging to the structure of a company available.
So permit me to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration it takes. This is the method to if you want to do it for yourself and the objective of establishing the company is gain a short-term goal. But this puts you prone to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. For a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust between the partners. But similar in order to some proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a Person Company in how the company is really a separate legal entity that effect protects the owner from being personally to blame for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners aren’t personally liable to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 along with a maximum maximum of 45. The number of directors must be 2.