There are some good main reasons why it makes ample sense to register your company. The first basic reason is preserve one's own interests and not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable 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 authorized.
Very there's always a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, when your business idea is good enough to be converted into a profitable business or never ever. And if the answer to method has . confident properly resounding yes, then then it's time for one to go ahead and register the new. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of corporation and like you would want to inflate it, your startup could be registered as among the many legal formats belonging to the structure of the company accessible to you.
So allow me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. That's a company managed or run by 1 individual. No registration it will take. This is the method to adopt if for you to do it yourself and the reason for establishing firm is to attain a short-term goal. But this puts you prone 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. You should a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust concerning the partners. But similar the proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Company Registration in India Online is a 60 minute Person Company in that this company can be a separate legal entity which usually effect protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally liable to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum upper limit of corporation. The number of directors must be 2.