There are a few good some reasons why it makes ample sense to register your company. The first basic reason is preserve One Person Company Registration in India online‘s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes managed their shares to another it’s easier when an additional is enrolled.
Very there’s always a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not too. And if the answer to and also confident and a resounding yes, then it is time for someone to go ahead and register the new. And as mentioned earlier on it will be beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of enterprise enterprise and the way you want to inflate it, your startup can be registered among the many legal formats for this structure of a company accessible to you.
So allow me to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration it will take. This is the method to adopt if you wish to do it all by yourself and the reason for establishing firm is to achieve 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. For a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust within partners. But similar to a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that the company is often a separate legal entity that effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally prone to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 using a maximum upper limit of 50. The number of directors must be 2.