There are some good reasons why it makes ample sense to register your network. The first basic reason is to safeguard one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes managed their shares to another it’s easier when group is registered.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not. And if the answer to and also confident and also resounding yes, then it’s the perfect time for in order to go ahead and register the start-up. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of corporation and how i want to be expanded it, your startup could be registered among the many legal formats for this structure of a company open to you.
So i want to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by One Person Company Registration in India online particular individual. No registration is needed. This is the method to if you must do it alone and the purpose of establishing the company is obtain a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. For a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust between the partners. But similar in order to some proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that your company can be a separate legal entity within turn effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally liable to lose their personal power.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 with a maximum maximum of 45. The number of directors must be 2.