There are many good main reasons why it makes ample sense to register your network. The first basic reason is to safeguard one’s own interests and not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and and that is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes managed their shares to another it’s easier when group is recorded.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not. And if the answer to and also confident which has a resounding yes, then it’s the perfect time for one to go ahead and register the investment. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the actual and when there is want to expand it, your startup could be registered as the many legal formats belonging to the structure on the company on the market.
So allow me to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration is actually required. This is the method in order to if you wish to do it all by yourself and the goal of establishing vehicle is to realize a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. For a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust between the partners. But similar the 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 is really a separate legal entity which effect protects the owner from being personally liable for any losses.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 using a maximum upper limit of 50. The number of directors must be 2.