There are a few good some reasons why it makes ample sense to register your company. The first basic reason is to guard One Person Company Registration in India online‘s own interests by no means risk personal assets to the point of facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when an additional is authorized.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, as well as business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to the confident properly resounding yes, then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the actual and like you would want to expand it, your startup could be registered as among the many legal formats in the structure in a company available.
So permit me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration it will take. This is the method in order to if you want to do it alone and the objective of establishing the organization is to realize a short-term goal. But this puts you at risk to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the event of a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust in between the partners. But similar the proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in which the company can be a separate legal entity that effect protects the owner from being personally to blame for any loss.
d) Limited Liability Partnership (LLP), where the 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 will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 along with a maximum upper limit of 45. The number of directors must be 2.