There are a couple of good reasons why it makes ample sense to register your company. The first basic reason is to safeguard Online One Person Company Registration in India‘s own interests and is 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 much easier to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited reputable company. (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 group is enrolled.
Very almost always there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to and also confident and a resounding yes, then it is time for someone to go ahead and register the investment. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the business and when there is want to flourish it, your startup could be registered among the many legal formats in the structure of a company on the market.
So allow me to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by 1 individual. No registration it will take. This is the method in order to if you want to do it alone and the purpose of establishing the company is to realize a short-term goal. But this puts you subject to losing all your 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 a Partnership firm, just as the 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 one Person Company in that the company is really a separate legal entity within turn effect protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), that 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 of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 having a maximum maximum of 50. The number of directors must be 2.