There are some good good reason that it makes ample sense to register your tiny. The first basic reason is to protect one’s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is disclosed. 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, 1 wishes managed their shares to another it’s easier when group is enrolled.
Very there’s always a dilemma as to when organization should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not. And if the answer to method has . confident properly resounding yes, then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to write 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 expand it, your startup could be registered as Online One Person Company Registration in India of the many legal formats belonging to the structure in a company open to you.
So allow me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration it takes. This is the method to if for you to do it on your own and the purpose of establishing firm is gain a short-term goal. But this puts you liable to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the case of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust within partners. But similar together with proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that the company is a separate legal entity within turn effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally prone to lose their personal power.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 by using a maximum upper limit of 45. The number of directors must be 2.