There are some good the actual reason why it makes ample sense to register your company. The first basic reason is to protect Online One Person Company Registration in India‘s own interests by no means risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and is also forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited group. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is recorded.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or truly. And if the answer to that is a confident too resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the business and the way you want to inflate it, your startup could be registered as the many legal formats for this structure associated with company available to you.
So allow me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by one particular individual. No registration it will take. This is the method in order to if you should do it all by yourself and the purpose of establishing the organization is to attain a short-term goal. But this puts you liable to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. For a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust in between the partners. But similar to a proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that this company is a separate legal entity within turn effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally liable to lose their personal wealth.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 along with a maximum maximum of 50. The number of directors must be 2.