There are several good reasons why it makes ample sense to register your network. The first basic reason is guard one’s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited group. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes to transfer their shares to another it’s easier when the company is authorized.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to that is a confident and also resounding yes, then it is time for in order to go ahead and register the startup. And as mentioned earlier on it’s always 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 one of the many legal formats for this structure on the company available to you.
So allow me to first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by one particular individual. No registration is actually required. This is the method to be able to if for you to do it yourself and the purpose of establishing the organization is to attain 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 even more than two individuals. In the case of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust between the partners. But similar using a proprietorship there is a risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a one Person Company in that this company is often a separate legal entity which effect protects the owner from being personally to blame for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally prone to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 having a maximum upper limit of corporation. The number of directors must be 2.