There are a couple of good reasons why it makes ample sense to register your network. The first basic reason is preserve Online One Person Company Registration in India‘s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited enterprise. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes to transfer their shares to another it’s easier when an additional is authorized.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, if your business idea is good enough to be converted into a profitable business or never ever. And if the answer to the confident properly resounding yes, then it’s the perfect time for in order to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of enterprise enterprise and a method to want to inflate it, your startup could be registered as among the many legal formats for this structure of the company available to you.
So i want to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Would you company managed or run by 1 individual. No registration is actually required. This is the method to if for you to do it all by yourself and the goal of establishing the company is to realize a short-term goal. But this puts you prone to losing your entire 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 are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust concerning the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that the company is often a separate legal entity which effect protects the owner from being personally subject to any cutbacks.
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 prone to lose their personal holdings.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 with a maximum upper limit of 150. The number of directors must be 2.