There are a few good main reasons why it makes ample sense to register your specialist. The first basic reason is preserve one’s own interests and not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited reputable company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes managed their shares to another it’s easier when company is registered.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to that is a confident which has a resounding yes, then then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to expand it, your startup could be registered as One Person Company Registration in India online of the many legal formats for this structure of a company available to you.
So ok, i’ll first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by only 1 individual. No registration is actually required. This is the method in order to if you wish to do it for yourself and the goal of establishing firm is obtain a short-term goal. But this puts you subject to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. You should a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a involving trust between the partners. But similar in order to some proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that the company is a separate legal entity within turn effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal holdings.
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 any upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum maximum of 45. The number of directors must be 2.