There are some good the actual reason why it makes ample sense to register your little. The first basic reason is to safeguard Online One Person Company Registration in India‘s own interests but not 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 simpler 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 and even limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes to transfer their shares to another it’s easier when an additional is enrolled.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted to a profitable business or not. And if the answer to that is a confident too resounding yes, then it’s the perfect time for someone to go ahead and register the startup. And as mentioned earlier on it is always beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to be expanded it, your startup can be registered as among the many legal formats of the structure of the company available.
So i want to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration becomes necessary. This is the method to adopt if you wish to do it on your own and the goal of establishing vehicle is to realize a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the case of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust regarding the partners. But similar to a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that your company is often a separate legal entity which effect protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal wealthiness.
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 associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 by using a maximum upper limit of corporation. The number of directors must be 2.