There are some good main reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard Online One Person Company Registration in India‘s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes to transfer their shares to another it’s easier when the company is subscribed.
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 not too. And if the answer to that is a confident and also resounding yes, then it is time for someone to go ahead and register the international. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to flourish it, your startup can be registered as among the many legal formats with the structure on the company accessible to you.
So ok, i’ll first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by one particular individual. No registration it takes. This is the method to if you should do it yourself and the goal of establishing the organization is to attain a short-term goal. But this puts you at risk of 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. In the event of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust in between the partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that your company can be a separate legal entity within turn effect protects the owner from being personally accountable for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum 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 of needed are 7 using a maximum upper limit of corporation. The number of directors must be 2.