Ways 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 and is not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes managed their shares to another it’s easier when enterprise is enrolled.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, if your business idea is good enough to be converted to a profitable business or truly. And if the answer to that is a confident and also resounding yes, then then it’s time for one to go ahead and register the investment. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of corporation and how i want to grow it, your startup could be registered as one of the many legal formats belonging to the structure of a company available.
So i want to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration it will take. This is the method to be able to if you wish to do it all by yourself and the objective of establishing business is to attain a short-term goal. But this puts you prone to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the event of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust regarding the partners. But similar together with proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC Registration Online in India is a single Person Company in that this company is a separate legal entity that effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally liable to lose their personal power.
e) Limited Company is actually 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 the minimum number persons needed are 7 having a maximum upper limit of 45. The number of directors must be 2.