There are a couple of good main reasons why it makes ample sense to register your little. The first basic reason is to guard Online One Person Company Registration in India‘s own interests as an alternative to risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if organization is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited group. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes managed their shares to another it’s easier when company is registered.
Very there’s always a dilemma as to when the company 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 solely. And if the answer to method has . confident properly resounding yes, then it’s the perfect time for someone to go ahead and register the start-up. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and how i want to grow it, your startup could be registered among the many legal formats with the structure on the company on the market.
So i want to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only individual. No registration becomes necessary. This is the method to if for you to do it all by yourself and the goal of establishing the company is to achieve a short-term goal. But this puts you at risk to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. You should a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a involving trust within partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in which the company is really a separate legal entity which in effect protects the owner from being personally accountable for any losses.
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 aren’t personally prone to lose their personal wealth.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 with a maximum upper limit of corporation. The number of directors must be 2.