There are many good good reason that it makes ample sense to register your company. The first basic reason is guard One Person Company Registration in India online‘s own interests by no means risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is much simpler 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 firm. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes managed their shares to another it’s easier when group is recorded.
Very there’s always a dilemma as to when organization 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 never ever. And if the answer to and also confident and also resounding yes, then it’s the perfect time for someone to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the organization and like you would want to flourish it, your startup can be registered as among the many legal formats with the structure of a company on the market.
So permit me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by one particular individual. No registration becomes necessary. This is the method to be able to if you want to do it for yourself and the goal of establishing the company is to achieve a short-term goal. But this puts you prone to losing every 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 event of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust in between the partners. But similar the proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that the company is a separate legal entity within turn effect protects the owner from being personally to blame for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally liable to lose their personal power.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 with a maximum upper limit of fifty five. The number of directors must be 2.