There are several good some reasons why it makes ample sense to register your company. The first basic reason is to guard Online One Person Company Registration in India‘s own interests but not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes to transfer their shares to another it’s easier when an additional is authorized.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, in case business idea is good enough to be converted into a profitable business or truly. And if the answer to the confident which has a resounding yes, then it is time for in order to go ahead and register the start-up. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the organization and when there is want to expand it, your startup can be registered as the many legal formats for this structure associated with company on the market.
So i want to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration is actually required. This is the method to if you wish to do it all by yourself and the goal of establishing business is to realize a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the case of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust between the partners. But similar using a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in how the company can be a separate legal entity which usually effect protects the owner from being personally to blame for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally liable to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 along with a maximum maximum of 45. The number of directors must be 2.