There are many good main reasons why it makes ample sense to register your little. The first basic reason is to guard one's own interests by no means risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and and that is forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization 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, from a limited company, if one wishes managed their shares to another it's easier when group is subscribed.
Very there's always a dilemma as to when the corporate should be registered. The answer to which is, primarily, if your business idea is good enough to be converted into a profitable business or truly. And if the answer to and also confident which has a resounding yes, then it is time for one to go ahead and register the start-up. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and how i want to be expanded it, your startup can be registered as the many legal formats with the structure in a company accessible to you.
So i want to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. That's a company owned and operated or run by one particular individual. No registration it takes. This is the method to if you should do it on your own and the reason for establishing vehicle is to realize a short-term goal. But this puts you at risk to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. For a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust concerning the partners. But similar to a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a 60 minute Person Company in that this company is really a separate legal entity that effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren't personally prone to lose their personal wealth.
e) Limited Company that 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 end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 with a maximum maximum of 50. The number of directors must be 2.