There are some good main reasons why it makes ample sense to register your little. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests but not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if an additional is disclosed. 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, any time a limited company, if wishes to transfer their shares to another it’s easier when company is enrolled.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to and also confident too resounding yes, then then it’s time for one to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to expand it, your startup can be registered as among the many legal formats belonging to the structure associated with company on the market.
So ok, i’ll first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by just one individual. No registration is needed. This is the method to if you should do it for yourself and the reason for establishing the company is to realize a short-term goal. But this puts you at risk of losing complete 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 aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust regarding the partners. But similar to a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in which the company can be a separate legal entity which in effect protects the owner from being personally accountable for any cutbacks.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally liable 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 any 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.