The way to Register a Startup Company

There are a few good the actual reason why it makes ample sense to register your tiny. The first basic reason is to safeguard one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and and that is forced to close down. Secondly, it is simpler 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 potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it’s easier when company is authorized.

Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, if your business idea is good enough to be converted to a profitable business or not too. And if the answer to and also confident and also resounding yes, then it is time for in order to go ahead and register the startup. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before you are saddled with liabilities.

Depending upon the size and type of the business and how i want to be expanded it, your startup can be registered as one of the many legal formats in the structure of a company open to you.

So let me first fill you in with the required information. The different company structures available are:

a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration it will take. This is the method to if you should do it all by yourself and the goal of establishing firm is to realize a short-term goal. But this puts you liable to losing all your personal assets should misfortune strike.

b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. For a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust regarding the partners. But similar using a proprietorship you will find a risk of losing personal assets in any eventuality.

c) OPC Registration Online in India is single Person Company in that the company is really a separate legal entity which in effect protects the owner from being personally to blame for any cutbacks.

d) Limited Liability Partnership (LLP), that the 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 which is of 2 types,

i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the associated with directors must be at least 3 and

ii) Private Limited Company where minimal number persons needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.