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Nov 28

The way to Register a Startup Company

There are a couple of good main reasons why it makes ample sense to register your little. The first basic reason is to safeguard one’s own interests and not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited firm. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes managed their shares to another it’s easier when enterprise is authorized.

Very there’s always a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted to a profitable business or not too. And if the answer to the confident properly resounding yes, then then it’s time for in order to go ahead and register the international. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before damaging saddled with liabilities.

Depending upon the size and type of the actual and how i want to expand it, your startup can be registered among the many legal formats for this structure associated with company open to you.

So allow me to first educate you with the mandatory information. The different company structures available are:

a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration it takes. This is the method in order to if you wish to do it on your own and the objective of establishing firm is to realize a short-term goal. But this puts you prone to losing your own 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 a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a involving trust between the partners. But similar to a proprietorship there could risk of losing personal belongings in any eventuality.

c) OPC Registration Online in India is a single Person Company in that this company can be a separate legal entity that effect protects the owner from being personally liable for any cutbacks.

d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally prone to lose their personal power.

e) Limited Company is actually of 2 types,

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

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