There are several reasons why celebrate ample sense to register your business. The 1st basic reason is always to protect your interests and never risk personal assets to begin facing bankruptcy should your business faces an emergency as well as has to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection in the event the company is registered. It offers a superior tax advantages of the entrepreneur typically inside a partnership, an LLP or possibly a limited company. (These are generally terms which were described later on). Another acceptable reason is, in the case of a restricted company, if an individual needs to transfer their shares to a new it’s easier once the company is registered.


Usually you will find there’s dilemma as to once the company needs to be registered. The reply to that’s, primarily, if the business idea is a great one to become converted to a profitable business you aren’t. And if the solution to that is a confident and a resounding yes, then it’s here we are at one to proceed to company registration services. And as mentioned previously it certainly is best for undertake it as being a precautions, before you could possibly be saddled with liabilities.

Depending upon the kind of and size of the company and in what way you need to expand it, your startup can be registered as among the many legal formats of the structure of a company available to you.

So permit me to first educate you with the required information. The different company structures on offer are:

a) Sole Proprietorship. What a company run or operated by just one individual. No registration should be used. Here is the solution to adopt in order to do everything alone and the intent behind establishing the corporation is always to have a short-term goal. But this puts you susceptible to losing your personal assets should misfortune strike.

b) Partnership firm. Is run or operated by at the very least several than two individuals. In the matter of a Partnership firm, because laws are certainly not as stringent as that involving Ltd. Company, (limited company) it demands a great deal of trust between the partners. But similar to a proprietorship you will find there’s risk of losing personal assets in a eventuality.

c) OPC can be a One individual Company in which the company is a different legal entity which in effect protects the owner from being personally answerable for any losses.

d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are certainly not personally at risk of lose their personal wealth.

e) Limited Company that’s of two types,

i) Public Limited Company where the minimum variety of members needed are 7 and there is no maximum; the quantity of directors must be at the very least 3 and
ii) Private Limited Company where the minimum number of individuals needed are 7 having a maximum maximum of fifty. The number of directors must be 2.
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