There are several good reasons why it makes ample sense to register your network. The first basic reason is preserve one’s own interests as an alternative to risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (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 enterprise is enrolled.
Very there’s always a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to method has . confident and a resounding yes, then it is time for someone to go ahead and register the new. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the actual and how i want to be expanded it, your startup can be registered as among the many legal formats for this structure of the company open to you.
So let me first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only individual. No registration it takes. This is the method to if you want to do it alone and the purpose of establishing firm is to attain a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. You should a Partnership firm, as 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 to a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a one Person Company in that this company is a separate legal entity that effect protects the owner from being personally accountable 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 are not personally liable to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 by using a maximum maximum of corporation. The number of directors must be 2.