Ways to Register a Startup Company
There are several good some reasons why it makes ample sense to register your little. The first basic reason is to guard one’s own interests as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited group. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when company is enrolled.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is good enough to be converted to a profitable business or never ever. And if the answer to that is a confident and a resounding yes, then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the organization and the way you want to flourish it, your startup can be registered among the many legal formats for this structure associated with company on the market.
So ok, i’ll first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration is needed. This is the method to if you should do it alone and the goal of establishing vehicle is gain a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust within partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a one Person Company in that this company is really a separate legal entity that effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally prone to lose their personal wealth.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 having a maximum upper limit of corporation. The number of directors must be 2.
