There are some good some reasons why it makes ample sense to register your company. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes to transfer their shares to another it’s easier when enterprise is authorized.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is good enough to be converted into a profitable business or not. And if the answer to the confident properly resounding yes, then then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the actual and how i want to flourish it, your startup can be registered as the many legal formats with the structure of the company open to you.
So ok, i’ll first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by just one individual. No registration becomes necessary. This is the method in order to if for you to do it all by yourself and the objective of establishing business is obtain a short-term goal. But this puts you prone to losing your entire 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 are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust concerning the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that the company is often a separate legal entity within turn effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), while 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 wide range.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 along with a maximum upper limit of fifty five. The number of directors must be 2.