Ways to Register a Startup Company
There are a few good reasons why it makes ample sense to register your specialist. The first basic reason is to guard Online One Person Company Registration in India‘s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited firm. (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 an additional is authorized.
Very there’s always a dilemma as to when organization should be registered. The answer to which is, primarily, when your business idea is good enough to be converted to a profitable business or not. And if the answer to and also confident and a resounding yes, 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 damaging saddled with liabilities.
Depending upon the size and type of the organization and when there is want to grow it, your startup could be registered as one of the many legal formats for this structure on the company accessible to you.
So let me first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by one particular individual. No registration it takes. This is the method to be able to if for you to do it on your own and the purpose of establishing firm is to achieve a short-term goal. But this puts you at risk of losing complete 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 case of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust between the partners. But similar together with proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that your company is a separate legal entity that effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), while 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 power.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.