There are several good the actual reason why it makes ample sense to register your company. The first basic reason is guard One Person Company Registration in India online‘s own interests and is not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes managed their shares to another it’s easier when enterprise is enrolled.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to that is a confident and also resounding yes, then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the actual and when there is want to grow it, your startup could be registered as one of the many legal formats of the structure on the company available.
So allow me to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by just one individual. No registration is actually required. This is the method in order to if you must do it all by yourself and the objective of establishing the company is to realize a short-term goal. But this puts you at risk to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the case of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust concerning the partners. But similar in order to some proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in which the company is a separate legal entity within turn effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal holdings.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 using a maximum upper limit of 150. The number of directors must be 2.