There are a couple of good some reasons why it makes ample sense to register your company. The first basic reason is to guard One Person Company Registration in India online‘s own interests and not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and also is forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (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 an additional is authorized.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, when your business idea is good enough to be converted into a profitable business or truly. And if the answer to that is a confident too resounding yes, then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to be expanded it, your startup could be registered among the many legal formats with the structure of a company available.
So allow me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration is actually required. This is the method in order to if you wish to do it on your own and the objective of establishing business is gain a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the case of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust within partners. But similar to a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that this company can be a separate legal entity which effect protects the owner from being personally to blame for any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally prone to lose their personal power.
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 end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 by using a maximum maximum of fifty five. The number of directors must be 2.