Easy methods to Register a Startup Company
There are a few good main reasons why it makes ample sense to register your little. The first basic reason is to protect one’s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is 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 or even a limited reputable 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 group is subscribed.
Very there’s always a dilemma as to when organization should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to method has . confident which has a resounding yes, then it’s the perfect time for someone to go ahead and register the startup. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the organization and how i want to expand it, your startup could be registered among the many legal formats of the structure of the company open to you.
So let me first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by just one individual. No registration it takes. This is the method to if you want to do it yourself and the reason for establishing vehicle is obtain a short-term goal. But this puts you prone to losing complete 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, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust regarding the partners. But similar the proprietorship there is a risk of losing personal belongings in any eventuality.
c) Online OPC Registration in India is a Person Company in that this company can be a separate legal entity within turn effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum maximum of corporation. The number of directors must be 2.