Easy methods to Register a Startup Company
There are a few good main reasons why it makes ample sense to Register One Person Company in India Online your specialist. The first basic reason is to protect one’s own interests and not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes managed their shares to another it’s easier when the company is authorized.
Very almost always there is a dilemma as to when a lot more claims 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 method has . confident which has a resounding yes, then then it’s time for in order to go ahead and register the startup. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the business and the way you want to expand it, your startup could be registered as among the many legal formats in the structure associated with company open to you.
So i want to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only individual. No registration it will take. This is the method in order to if you must do it for yourself and the reason for establishing the organization is gain a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the event of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust in between the partners. But similar the proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in how the company is a separate legal entity which in effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company which is 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 the minimum number of folks that needed are 7 with a maximum maximum of fifty five. The number of directors must be 2.