There are many good good reason that it makes ample sense to register your network. The first basic reason is to protect one’s own interests as an alternative to risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (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 company is registered.
Very often there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident and also resounding yes, then it’s time for someone to go ahead and register the international. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the actual and when there is want to be expanded it, your startup could be registered as one of the many legal formats in the structure on the company available to you.
So permit me to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by one particular individual. No registration it takes. This is the method to if you wish to do it all by yourself and the objective of establishing business is to achieve 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 or more than two individuals. You should a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust concerning the partners. But similar in order to some proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a 60 minute Person Company in that your company can be a separate legal entity which in 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 supplier and the partners aren’t personally liable to lose their personal wealth.
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 regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 with a maximum maximum of 50. The number of directors must be 2.