There are several great reasons why commemorate ample sense to register your small business. The very first basic reason is always to protect your interests rather than risk personal assets to begin facing bankruptcy but if your business faces a serious event plus is forced to close down. Secondly, it can be much easier to attract VC funding as VCs are assured of protection when the clients are registered. It gives you tax benefits to the entrepreneur typically in the partnership, an LLP or possibly a limited company. (They are terms which were described at a later date). Another valid reason is, in the event of a limited company, if someone would like to transfer their shares to an alternative it’s easier once the clients are registered.
Very often there is a dilemma about once the company needs to be registered. The solution to which is, primarily, should your business idea is a good example to become converted into a profitable business or otherwise. And if what is anxiety that is the confident along with a resounding yes, then its time for you to definitely go ahead and company registration in india. And as mentioned earlier on it is good for get it done like a safety measure, before you decide to could possibly be saddled with liabilities.
Depending upon the kind of and size the business and in what way you wish to expand it, your startup can be registered as among the many legal formats in the structure of a company accessible to you.
So i want to first fill you in together with the required information. The several company structures on offer are ::
a) Sole Proprietorship. That’s a company managed or run by just one single individual. No registration is needed. This can be the solution to adopt if you wish to do everything by yourself and the purpose of establishing the organization is always to have a short-term goal. However puts you prone to losing your personal assets should misfortune strike.
b) Partnership firm. Is managed or run by no less than 2 or more than two individuals. Regarding a Partnership firm, since the laws usually are not as stringent as that involving Ltd. Company, (limited company) it demands plenty of trust involving the partners. But much like a proprietorship there is a probability of losing personal assets in any eventuality.
c) OPC is a One individual Company when the clients are a separate legal entity which in place protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm along with a company and the partners usually are not personally at risk of lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the amount of directors have to be no less than 3 and
ii) Private Limited Company where the minimum amount of people needed are 7 which has a maximum upper limit of fifty. The number of directors have to be 2.
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