There are some good good reason that it makes ample sense to register your company. The first basic reason is guard one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is simpler 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 potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, in case of 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 the company should be registered. The answer to which is, primarily, if your business idea is good enough to be converted to a profitable business or truly. And if the answer to the confident properly resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it is always beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the organization and a method to want to be expanded it, your startup could be registered as Online One Person Company Registration in India of the many legal formats for this structure in a company accessible to you.
So permit me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only 1 individual. No registration becomes necessary. This is the method to adopt if for you to do it yourself and the goal of establishing firm is to attain 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 a lot more than two individuals. In the case of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar together with proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in that this company is a separate legal entity that effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), where the 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 minimal number of members needed are 7 and there is no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.