There are some good main reasons why it makes ample sense to register your little. The first basic reason is to guard 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 an emergency and also is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if the company is accredited. 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, from a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, if your business idea is good enough to be converted to a profitable business or never ever. And if the answer to method has . confident properly resounding yes, then it is time for in order to go ahead and register the startup. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the business and like you would want to flourish it, your startup can be registered as the many legal formats with the structure on the company on the market.
So ok, i’ll first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration is needed. This is the method to be able 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 at risk to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. You should a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust regarding the partners. But similar the proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that your company is really a separate legal entity which in effect protects the owner from being personally responsible for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the 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 number of directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 using a maximum upper limit of 150. The number of directors must be 2.