How to Register a Startup Company
There are some good good reason that it makes ample sense to register your specialist. The first basic reason is to safeguard one’s own interests but not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when the company is subscribed.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, when your business idea is good enough to be converted to a profitable business or not solely. And if the answer to that is a confident properly resounding yes, then it’s the perfect time for in order to go ahead and Register One Person Company in India Online the start-up. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of corporation and how i want to inflate it, your startup can be registered as the many legal formats belonging to the structure of a company available to you.
So allow me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by 1 individual. No registration is needed. This is the method to adopt if you should do it for yourself and the reason for establishing vehicle is to attain a short-term goal. But this puts you at risk 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 being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust concerning the partners. But similar using a proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that this company is really a separate legal entity which usually effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners are not personally liable to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 using a maximum upper limit of 50. The number of directors must be 2.
