There are many great reasons why it can make ample sense to join up your company. The first basic reason would be to protect your own interests and not risk personal assets to begin facing bankruptcy but if your business faces an emergency plus has to shut down. Secondly, it’s easier to attract VC funding as VCs are assured of protection if your firm is registered. It gives you tax advantages to the entrepreneur typically inside a partnership, an LLP or possibly a limited company. (These are generally terms which have been described down the road). Another acceptable reason is, in case there is a small company, if someone would like to transfer their shares to another it’s easier once the firm is registered.
Very often there exists a dilemma as to once the company ought to be registered. The solution to which can be, primarily, if your business idea is good enough to become converted into a profitable business or not. If the solution to this is a confident along with a resounding yes, then its here we are at someone to just company registration in india. So that as mentioned previously it is usually best for take action like a precautions, before you decide to might be saddled with liabilities.
Depending upon the sort and size of the company and in what way you need to expand it, your startup can be registered as the many legal formats with the structure of a company open to you.
So allow me to first fill you in together with the required information. Different company structures on offer are ::
a) Sole Proprietorship. That’s a company owned and operated or run by just one individual. No registration is necessary. Here is the approach to adopt if you want to do all of it all on your own and the intent behind establishing the business would be to gain a short-term goal. But this puts you vulnerable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at the very least 2 or more than two individuals. When it comes to a Partnership firm, since the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a great deal of trust between your partners. But similar to a proprietorship there exists a likelihood of losing personal assets in almost any eventuality.
c) OPC is often a A single person Company in which the firm is an outside legal entity which in effect protects the master from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), in which the general partners have limited liability. LLP combines the very best of partnership firm along with a company and the partners are not personally prone to lose their personal wealth.
e) Limited Company which can be of two types,
i) Public Limited Company in which the minimum variety of members needed are 7 and there’s no upper limit; the volume of directors must be at the very least 3 and
ii) Private Limited Company in which the minimum number of people needed are 7 using a maximum upper limit of 50. The number of directors must be 2.
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