Ways to Register a Startup Company
There are many good some reasons why it makes ample sense to register your network. The first basic reason is to protect One Person Company Registration in India online‘s own interests as an alternative to risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is opted. 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, in case of a limited company, if wishes to transfer their shares to another it’s easier when enterprise is registered.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, when your business idea is good enough to be converted to a profitable business or not solely. And if the answer to and also confident too resounding yes, then then it’s time for in order to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to flourish it, your startup can be registered among the many legal formats belonging to the structure of the company available.
So let me first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration it takes. This is the method to adopt if you wish to do it all by yourself and the purpose of establishing the organization is to realize a short-term goal. But this puts you at risk to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. You should a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust between the partners. But similar together with proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that the company is a separate legal entity which usually effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally liable to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 by using a maximum maximum of 45. The number of directors must be 2.