There are a few good main reasons why 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 by no means risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is enrolled.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or never ever. And if the answer to that is a confident and also resounding yes, then then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of corporation and when there is want to grow it, your startup could be registered as among the many legal formats of the structure associated with company available.
So i want to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration is needed. This is the method to if for you to do it alone and the goal of establishing firm is obtain a short-term goal. But this puts you subject 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. For a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust regarding the partners. But similar together with proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in that this company is really a separate legal entity within turn effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 with a maximum upper limit of 45. The number of directors must be 2.