There are many good some reasons why it makes ample sense to register your company. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests by no means risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and which 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 and even limited firm. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes managed their shares to another it’s easier when company is authorized.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to and also confident properly resounding yes, then it is time for someone to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the actual and when there is want to flourish it, your startup can be registered as the many legal formats with the structure of a company available.
So i want to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by just one individual. No registration it takes. This is the method to if you must do it alone and the objective of establishing the company is to realize a short-term goal. But this puts you liable to losing complete 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 a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust in between the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in how the company is really a separate legal entity within turn effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally prone to lose their personal power.
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 regarding directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 by using a maximum upper limit of fifty five. The number of directors must be 2.