How to Register a Startup Company

There are several good reasons why it can make ample sense to register your small business. The initial basic reason is to protect your interests and never risk personal belongings to the point of facing bankruptcy if the business faces a crisis plus is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection when the firm is registered. It gives you tax benefits to the entrepreneur typically within a partnership, an LLP or even a limited company. (These are terms that have been described later on). Another justified reason is, in the case of a restricted company, if a person needs to transfer their shares to a new it’s easier when the firm is registered.

Frequently there exists a dilemma as to when the company ought to be registered. The solution to which can be, primarily, if your business idea is a good example to get converted to a profitable business you aren’t. And when the reply to this is a confident plus a resounding yes, then it’s here we are at anyone to just company registration. And as mentioned previously it’s always good to take action like a protection, when you could be saddled with liabilities.

Based on the kind of and size of the business and in what way you want to expand it, your startup can be registered as one of the many legal formats of the structure of a company accessible to you.

So i want to first fill you in together with the required information. The various company structures available are:

a) Sole Proprietorship. This is a company owned and operated or run by just one individual. No registration is necessary. This is the solution to adopt if you want to do everything on your own as well as the purpose of establishing the corporation is to have a short-term goal. But this puts you vulnerable to losing your entire personal belongings should misfortune strike.

b) Partnership firm. Is owned and operated or run by no less than 2 or more than two individuals. In the matter of a Partnership firm, as the laws usually are not as stringent as that involving Ltd. Company, (limited company) it requires plenty of trust between the partners. But much like a proprietorship there exists a likelihood of losing personal belongings in a eventuality.

c) OPC can be a One individual Company in which the firm is an outside legal entity which in essence protects the dog owner from being personally liable for any losses.

d) Limited Liability Partnership (LLP), in which the general partners have limited liability. LLP combines the very best of partnership firm plus a company as well as the partners usually are not personally likely to lose their personal wealth.

e) Limited Company which can be of two types,

i) Public Limited Company in which the minimum amount of members needed are 7 and there is no upper limit; the number of directors has to be no less than 3 and
ii) Private Limited Company in which the minimum number of individuals needed are 7 which has a maximum upper limit of 50. The number of directors has to be 2.
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