Ways to Register a Startup Company
There are many good reasons why it makes ample sense to register your tiny. The first basic reason is to protect one’s own interests but not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes managed their shares to another it’s easier when the company is registered.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not too. And if the answer to that is a confident and also resounding yes, then it is time for in order to go ahead and Register One Person Company in India Online the start-up. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the actual and how i want to be expanded it, your startup could be registered among the many legal formats with the structure associated with company on the market.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only 1 individual. No registration it takes. This is the method to adopt if you should do it yourself and the purpose of establishing the company is obtain a short-term goal. But this puts you subject to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust in between the partners. But similar in order to some proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in which the company is a separate legal entity which usually effect protects the owner from being personally liable for any cutbacks.
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 are not personally prone to lose their personal wealth.
e) Limited Company that 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 must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 with a maximum upper limit of 150. The number of directors must be 2.