Tips on how to Register a Startup Company
There are several good main reasons why it makes ample sense to Register One Person Company in India Online your company. The first basic reason is to protect one’s own interests and is not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if firm is accredited. 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 to transfer their shares to another it’s easier when company is subscribed.
Very almost always there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, in case business idea is good enough to be converted into a profitable business or never ever. And if the answer to method has . confident and also resounding yes, then it’s the perfect time for someone to go ahead and register the new. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and the way you want to grow it, your startup can be registered as one of the many legal formats with the structure in a company accessible to you.
So allow me to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration is actually required. This is the method in order to if you should do it yourself and the purpose of establishing business is gain a short-term goal. But this puts you subject to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. You should a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust concerning the partners. But similar the proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that your company is often a separate legal entity which effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), whereas the 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 wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.