There are a few good 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 but not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and and that is forced to seal 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 potentially a limited firm. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes managed their shares to another it’s easier when an additional is authorized.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to and also confident and also resounding yes, then then it’s time for someone to go ahead and register the startup. 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 enterprise enterprise and a method to want to flourish it, your startup can be registered among the many legal formats belonging to the structure on the company available.
So allow me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration it will take. This is the method in order to if you wish to do it on your own and the purpose of establishing vehicle is obtain a short-term goal. But this puts you prone 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 aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar in order to some proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that the company is really a separate legal entity that effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally liable to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 having a maximum upper limit of 45. The number of directors must be 2.