How to Register a Startup Company
There are some good reasons why it makes ample sense to register your specialist. The first basic reason is to protect one’s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes managed their shares to another it’s easier when group is authorized.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident which has a resounding yes, then it’s time for in order to go ahead and Register One Person Company in India Online the investment. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the business and like you would want to expand it, your startup could be registered as among the many legal formats in the structure of a company open to you.
So i want to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration becomes necessary. This is the method to be able to if you wish to do it alone and the purpose of establishing the organization is to realize a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. For a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust regarding the partners. But similar the proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in how the company is a separate legal entity which in effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealth.
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 regarding directors must be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 having a maximum maximum of fifty five. The number of directors must be 2.