There are a couple of good good reason that it makes ample sense to register your tiny. The first basic reason is guard one's own interests as an alternative to risk personal assets to the point of facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it's easier when the company is subscribed.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, in case business idea is good enough to be converted to a profitable business or not too. And if the answer to method has . confident and also resounding yes, then it's the perfect time for in order to go ahead and register the new. And as mentioned earlier on it's usually beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the actual and a method to want to flourish it, your startup can be registered among the many legal formats for this structure associated with company available.
So permit me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration is actually required. This is the method to if you should do it all by yourself and the goal of establishing the company is obtain 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 even more than two individuals. In the a Partnership firm, as the laws aren't as stringent as that involving Ltd. Company, (limited company) it requires a involving trust in between the partners. But similar together with proprietorship thankfully risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a 60 minute Person Company in that the company can be a separate legal entity within turn effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren't personally prone to lose their personal holdings.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn't any upper limit; the connected with directors should 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.