There are a couple of good some reasons why it makes ample sense to register your network. The first basic reason is guard one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and also is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when business should be registered. The solution to which is, primarily, if your business idea is good enough to be converted to a profitable business or not too. And if the answer to that is a confident and a resounding yes, then then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to be expanded it, your startup could be registered among the many legal formats in the structure associated with company open to you.
So allow me to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by just one individual. No registration becomes necessary. This is the method to if you wish to do it all by yourself and the objective of establishing the company is gain a short-term goal. But this puts you subject to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust regarding the partners. But similar together with proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a one Person Company in how the company is a separate legal entity which effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally liable 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 no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 using a maximum upper limit of 150. The number of directors must be 2.