The way to Register a Startup Company

There are many good good reason that it makes ample sense to register your company. The first basic reason is preserve one’s own interests and not risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when the company is authorized.

Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or truly. 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 the start-up. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you are saddled with liabilities.

Depending upon the size and type of the organization and the way you want to be expanded it, your startup can be registered as the many legal formats for this structure on the company on the market.

So i want to first fill you in with needed information. The different company structures available are:

a) Sole Proprietorship. Of the company managed or run by only individual. No registration it will take. This is the method in order to if you should do it all by yourself and the reason for establishing business is obtain a short-term goal. But this puts you at risk of losing your own 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, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust regarding the partners. But similar in order to some proprietorship answer to your problem risk of losing personal belongings in any eventuality.

c) OPC Registration Online in India is single Person Company in which the company is really a separate legal entity which effect protects the owner from being personally liable 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 wealthiness.

e) Limited Company which is of 2 types,

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

ii) Private Limited Company where the minimum number persons needed are 7 having a maximum upper limit of 45. The number of directors must be 2.