There are several good some reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and also is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when the company is registered.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not. And if the answer to and also confident properly resounding yes, then it is time for one to go ahead and register the start-up. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to flourish it, your startup can be registered as the many legal formats belonging to the structure in a company available.
So let me first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only individual. No registration it will take. This is the method in order to if for you to do it for yourself and the purpose of establishing firm is gain a short-term goal. But this puts you at risk to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust within partners. But similar the proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a 60 minute Person Company in that your company is a separate legal entity which effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 by using a maximum upper limit of 150. The number of directors must be 2.