There are a few good some reasons why it makes ample sense to register your company. The first basic reason is guard one's own interests by no means risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is also forced to seal down. Secondly, it is much easier 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 or even a limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes managed their shares to another it's easier when an additional is authorized.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, when the business idea is good enough to be converted into a profitable business or not too. And if the answer to the 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's always beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and like you would want to grow it, your startup could be registered as one of the many legal formats of the structure in a company accessible to you.
So let me first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by 1 individual. No registration it takes. This is the method to if you should do it alone and the objective of establishing business is to realize a short-term goal. But this puts you at risk of losing all your 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, as the laws aren't as stringent as that involving Ltd. Company, (limited company) it demands a involving trust between the partners. But similar to a proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a Person Company in which the company is often a separate legal entity which effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren't personally liable to lose their personal power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn't any upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 by using a maximum upper limit of 50. The number of directors must be 2.