There are a few good the actual reason why it makes ample sense to register your little. The first basic reason is to protect One Person Company Registration in India online‘s own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes to transfer their shares to another it’s easier when enterprise is authorized.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or never ever. And if the answer to and also confident and a resounding yes, then it’s time for one to go ahead and register the new. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the actual and how i want to be expanded it, your startup could be registered among the many legal formats in the structure of the company on the market.
So ok, i’ll first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration is needed. This is the method to adopt if you must do it alone and the reason for establishing the company is to attain a short-term goal. But this puts you liable to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. For a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust in between the partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in how the company is really a separate legal entity that effect protects the owner from being personally subject to any damages.
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 are not personally prone to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 by using a maximum upper limit of 45. The number of directors must be 2.