There are a few good some reasons why it makes ample sense to register your network. The first basic reason is preserve one’s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company 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, just in case a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is registered.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, in case business idea is good enough to be converted to a profitable business or truly. And if the answer to that is a confident which has a resounding yes, then it is time for in order to go ahead and register the new. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the actual and when there is want to be expanded it, your startup can be registered as one of the many legal formats for this structure of the company available to you.
So permit me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by just one individual. No registration it will take. This is the method to be able to if you want to do it yourself and the reason for establishing business is to achieve a short-term goal. But this puts you at risk to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the event of a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a involving trust regarding the partners. But similar in order to some proprietorship there is a risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a single Person Company in that your company is really a separate legal entity which effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.