There are several good the actual reason why it makes ample sense to register your tiny. The first basic reason is guard One Person Company Registration in India online‘s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes to transfer their shares to another it’s easier when company is subscribed.
Very almost always there is a dilemma as to when business should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to method has . confident which has a 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 create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the business and when there is want to expand it, your startup could be registered among the many legal formats belonging to the structure on the company accessible to you.
So allow me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by one particular individual. No registration is actually required. This is the method in order to if you must do it yourself and the reason for establishing the company is to achieve a short-term goal. But this puts you subject 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. In the case of a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust regarding the partners. But similar in order to some proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that this company can be a separate legal entity which in effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 by using a maximum upper limit of 45. The number of directors must be 2.