There are a couple of good some reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests but not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and is also forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when enterprise is authorized.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is good enough to be converted to a profitable business or never ever. And if the answer to the confident properly resounding yes, then then it’s time for someone to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the actual and like you would want to expand it, your startup can be registered among the many legal formats for this structure of the company available to you.
So allow me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only individual. No registration becomes necessary. This is the method in order to if you must do it yourself and the purpose of establishing business is to attain a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust regarding the partners. But similar using a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a 60 minute Person Company in that the company is really a separate legal entity that effect protects the owner from being personally responsible for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 with a maximum maximum of 50. The number of directors must be 2.