There are several good good reason that it makes ample sense to register your network. The first basic reason is to guard one’s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes managed their shares to another it’s easier when an additional is enrolled.
Very almost always there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or not too. And if the answer to that is a confident properly resounding yes, then it’s the perfect time for one to go ahead and register the investment. And as mentioned earlier on it will be beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the organization and a method to want to grow it, your startup can be registered as among the many legal formats with the structure of the company on the market.
So ok, i’ll first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by only 1 individual. No registration it takes. This is the method to if you want to do it for yourself and the objective of establishing firm 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. In the event of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust within partners. But similar in order to some proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a single Person Company in which the company is a separate legal entity that effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), whereas 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 wide range.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the number of directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 with a maximum maximum of corporation. The number of directors must be 2.