How to Register a Startup Company
There are a few good some reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests and is not risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if the company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited company. (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 the company is subscribed.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to and also confident properly resounding yes, then it’s time for someone to go ahead and register the international. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the organization and when there is want to flourish it, your startup can be registered as the many legal formats with the structure of a company available.
So allow me to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by one particular individual. No registration is needed. This is the method to adopt if you wish to do it on your own and the goal of establishing the company is to achieve 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 a lot more than two individuals. For a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust within partners. But similar together with proprietorship there is a risk of losing personal assets in any eventuality.
c) Online OPC Registration in India is single Person Company in which the company is often a separate legal entity within turn effect protects the owner from being personally responsible 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 company and the partners aren’t personally prone to lose their personal power.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the number of directors end up being at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 with a maximum maximum of 150. The number of directors must be 2.