There are many good 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 point of facing bankruptcy in case your business faces an emergency and also is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is registered. 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, in case of a limited company, if one wishes managed their shares to another it’s easier when an additional is registered.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or truly. And if the answer to that is a confident properly resounding yes, then it’s time for one to go ahead and register the international. And as mentioned earlier on it is always beneficial find a quote as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to grow it, your startup can be registered as the many legal formats of the structure of the company accessible to you.
So ok, i’ll first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by just one individual. No registration it will take. This is the method to adopt if you should do it all by yourself and the objective of establishing the organization is to attain a short-term goal. But this puts you prone 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. You should a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust regarding the partners. But similar the proprietorship there could risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a single Person Company in that this company can be a separate legal entity that effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally prone to lose their personal power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 by using a maximum maximum of 45. The number of directors must be 2.