There are many good some reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests and not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and is also forced to close down. Secondly, it is much easier 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 potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes managed their shares to another it’s easier when an additional is enrolled.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or not solely. And if the answer to that is a confident too resounding yes, then it’s the perfect time for in order to go ahead and register the international. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the actual and a method to want to grow it, your startup could be registered as among the many legal formats of the structure on the company on the market.
So permit me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by one particular individual. No registration is needed. This is the method to if you must do it on your own and the objective of establishing firm is obtain 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 being laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust between the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is a 60 minute Person Company in which the company is really a separate legal entity that effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 along with a maximum upper limit of 45. The number of directors must be 2.