There are several good 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 belongings to the aim of facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes managed their shares to another it’s easier when group is authorized.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to that is a confident properly resounding yes, then it’s time for one to go ahead and register the new. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to grow it, your startup can be registered as among the many legal formats for this structure of a company on the market.
So i want to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by 1 individual. No registration is needed. This is the method in order to if you want to do it on your own and the goal of establishing firm is obtain 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 higher than two individuals. For a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust regarding the partners. But similar the proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that your company is a separate legal entity which effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 along with a maximum maximum of 45. The number of directors must be 2.