There are some good some reasons why it makes ample sense to register your network. The first basic reason is to safeguard one’s own interests and not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is opted. 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, in case of a limited company, if one wishes to transfer their shares to another it’s easier when company is authorized.
Very almost always there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to that is a confident properly resounding yes, then it’s the perfect time for one to go ahead and register the start-up. And as mentioned earlier on it will be beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and the way you want to grow it, your startup could be registered as One Person Company Registration in India online of the many legal formats belonging to the structure of a company accessible to you.
So let me first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by 1 individual. No registration it will take. This is the method to adopt if for you to do it alone and the reason for establishing vehicle is gain a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the event of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar the proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a Person Company in which the company is really a separate legal entity which usually effect protects the owner from being personally responsible for any obligations.
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 prone to lose their personal holdings.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 with a maximum upper limit of 50. The number of directors must be 2.