There are a few good the actual reason 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 assets to the point of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes managed their shares to another it’s easier when the company is registered.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted to a profitable business or not. And if the answer to that is a confident and a resounding yes, then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and when there is want to grow it, your startup can be registered among the many legal formats in the structure associated with company accessible to you.
So let me first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration is actually required. This is the method to be able to if you must do it all by yourself and the purpose of establishing the organization is to achieve a short-term goal. But this puts you subject 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, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust within partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a Person Company in how the company is really a separate legal entity which usually effect protects the owner from being personally subject to any cutbacks.
d) Limited Liability Partnership (LLP), while 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 which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 using a maximum maximum of 45. The number of directors must be 2.