There are many good good reason that it makes ample sense to register your specialist. The first basic reason is to protect one's own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it's easier when company is enrolled.
Very often there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to the confident and also resounding yes, then then it's time for in order to go ahead and register the startup. 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 a method to want to be expanded it, your startup could be registered among the many legal formats in the structure associated with company open to you.
So ok, i'll first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by just One Person Company Registration in India online individual. No registration becomes necessary. This is the method in order to if you wish to do it on your own and the goal of establishing the organization is obtain a short-term goal. But this puts you at risk to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. For a Partnership firm, when your laws aren't as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust regarding the partners. But similar to a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in which the company can be a separate legal entity within turn effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren't personally liable to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn't a upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 with a maximum maximum of 45. The number of directors must be 2.