There are a few good the actual reason why it makes ample sense to register your network. The first basic reason is to guard one’s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes managed their shares to another it’s easier when group is subscribed.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, when the business idea is good enough to be converted to a profitable business or not solely. And if the answer to that is a confident and a resounding yes, then it is 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 important work saddled with liabilities.
Depending upon the type and size of corporation and when there is want to inflate it, your startup could be registered as one of the many legal formats with the structure on the company open to you.
So let me first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by one particular individual. No registration it takes. This is the method to be able to if you want to do it all by yourself and the objective of establishing vehicle is to realize 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. For a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust concerning the partners. But similar using a proprietorship you will find a risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a one Person Company in that your company can be a separate legal entity which effect protects the owner from being personally liable for 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 liable to lose their personal wide range.
e) Limited Company which is 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 end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 by using a maximum maximum of 150. The number of directors must be 2.