There are a few good reasons why it makes ample sense to register your network. The first basic reason is to guard one’s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is 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 even a limited enterprise. (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 group is enrolled.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not solely. And if the answer to the confident which has a resounding yes, then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the organization and the way you want to flourish it, your startup could be registered as the many legal formats belonging to the structure in a company accessible to you.
So permit me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by just one individual. No registration it will take. This is the method in order to if you want to do it for yourself and the reason for establishing the company is to attain a short-term goal. But this puts you at risk of losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the event of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust between the partners. But similar in order to some proprietorship there could risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a 60 minute Person Company in that this company is often a separate legal entity which effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally prone to lose their personal holdings.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 having a maximum upper limit of 50. The number of directors must be 2.