There are several good main reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes to transfer their shares to another it’s easier when the company is subscribed.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to and also confident and a resounding yes, then it’s the perfect time for someone to go ahead and register the international. And as mentioned earlier on it will be beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the organization and like you would want to expand it, your startup can be registered among the many legal formats belonging to the structure of a company accessible to you.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration is actually required. This is the method to if you want to do it yourself and the purpose of establishing vehicle is obtain a short-term goal. But this puts you at risk of 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 the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust between the partners. But similar the proprietorship there could risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is single Person Company in that your company is a separate legal entity that effect protects the owner from being personally to blame for any loss.
d) Limited Liability Partnership (LLP), where the 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 power.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum upper limit of fifty five. The number of directors must be 2.