There are a couple of good main reasons why it makes ample sense to register your company. The first basic reason is guard one’s own interests but not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes managed their shares to another it’s easier when enterprise is enrolled.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to that is a confident and a resounding yes, then it’s the perfect time for someone 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 will be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to grow it, your startup can be registered among the many legal formats with the structure on the company open to you.
So allow me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only 1 individual. No registration it takes. This is the method to be able to if you should do it yourself and the purpose of establishing business is to achieve a short-term goal. But this puts you at risk to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar together with proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a one Person Company in that the company can be a separate legal entity within turn effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally liable to lose their personal power.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 along with a maximum maximum of 150. The number of directors must be 2.