The way to Register a Startup Company
There are a few good the actual reason why it makes ample sense to register your network. The first basic reason is preserve one’s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is recorded.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to that is a confident too resounding yes, then it is time for someone to go ahead and register the startup. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of corporation and when there is want to expand it, your startup can be registered as the many legal formats in the structure associated with company available to you.
So permit me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only individual. No registration is actually required. This is the method in order to if you wish to do it all by yourself and the goal of establishing business is gain a short-term goal. But this puts you liable to losing complete 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 a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar in order to some proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC Company Registration in India Online is a Person Company in that your company is really a separate legal entity which usually effect protects the owner from being personally responsible for any cutbacks.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally liable to lose their personal wealth.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 by using a maximum maximum of 45. The number of directors must be 2.
