There are several good some reasons why it makes ample sense to register your tiny. The first basic reason is to guard Online One Person Company Registration in India‘s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and is also forced to shut down. Secondly, it is much easier 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 maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when group is authorized.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to the confident and also resounding yes, then it is time for in order to go ahead and register the international. And as mentioned earlier on it’s usually beneficial find a quote as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the business and how i want to flourish it, your startup can be registered among the many legal formats of the structure of a company on the market.
So permit me to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by just one individual. No registration it takes. This is the method to adopt if you want to do it alone and the reason for establishing the organization is to attain 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 more than two individuals. In the case of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust between the partners. But similar to a proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in how the company is a separate legal entity which effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), that 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 isn’t a upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 using a maximum upper limit of corporation. The number of directors must be 2.