There are a few good good reason that it makes ample sense to register your network. The first basic reason is to protect one’s own interests by no means risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes to transfer their shares to another it’s easier when the company is registered.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to that is a confident and also resounding yes, then it is time for someone to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and how i want to flourish it, your startup can be registered as the many legal formats for this structure in a company available to you.
So let me first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by 1 individual. No registration becomes necessary. This is the method to be able to if you want to do it for yourself and the objective of establishing vehicle is to attain a short-term goal. But this puts you subject to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the case of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust in between the partners. But similar in order to some proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is single Person Company in how the company is often a separate legal entity which in effect protects the owner from being personally accountable 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 company and the partners are not personally liable to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum maximum of 150. The number of directors must be 2.