There are several good the actual reason why it makes ample sense to register your little. The first basic reason is preserve Online One Person Company Registration in India‘s own interests and is not risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited reputable company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes to transfer their shares to another it’s easier when company is recorded.
Very there’s always a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not. And if the answer to that is a confident and a resounding yes, then it is time for in order to go ahead and register the startup. And as mentioned earlier on it’s always beneficial find a quote as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to flourish it, your startup can be registered as among the many legal formats belonging to the structure of a company on the market.
So i want to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by just one individual. No registration is actually required. This is the method to adopt if you wish to do it for yourself and the objective of establishing business is to realize 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 even more than two individuals. For a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar in order to some proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that your company is really a separate legal entity which usually effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally prone to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 along with a maximum upper limit of corporation. The number of directors must be 2.