Ways to Register a Startup Company
There are a few good the actual reason why it makes ample sense to register your specialist. The first basic reason is to safeguard one’s own interests and not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and and that is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when the company is registered.
Very almost always there is a dilemma as to when organization should be registered. The solution to which is, primarily, in case business idea is good enough to be converted to a profitable business or never ever. And if the answer to and also confident properly resounding yes, then then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to grow it, your startup can be registered as the many legal formats of the structure of a company accessible to you.
So permit me to first educate you with necessary 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 becomes necessary. This is the method to be able to if for you to do it yourself and the reason for establishing the company is to attain a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the event of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust between the partners. But similar in order to some proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC Registration Online in India is a 60 minute Person Company in that the company is often a separate legal entity which usually 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 company and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company that’s 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 folks needed are 7 having a maximum upper limit of 150. The number of directors must be 2.