There are some good good reason that 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 but not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited firm. (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 group is registered.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted to a profitable business or not too. And if the answer to that is a confident and a resounding yes, then it’s the perfect time for someone to go ahead and register the startup. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to grow it, your startup could be registered among the many legal formats of the structure associated with company available to you.
So allow me 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 becomes necessary. This is the method in order to if you should do it all by yourself and the objective of establishing firm 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 between the partners. But similar using a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in which the company can be a separate legal entity within turn effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally prone to lose their personal holdings.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 by using a maximum maximum of fifty five. The number of directors must be 2.