There are a few good the actual reason why it makes ample sense to register your company. The first basic reason is preserve one’s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes managed their shares to another it’s easier when enterprise is enrolled.
Very there’s always a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident and a resounding yes, then then it’s time for Online One Person Company Registration in India to go ahead and register the startup. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the organization and when there is want to be expanded it, your startup could be registered as among the many legal formats with the structure of a company available to you.
So permit me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only individual. No registration is actually required. This is the method to be able to if for you to do it all by yourself and the objective of establishing the organization is to realize a short-term goal. But this puts you prone to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. For a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust concerning the partners. But similar in order to some proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that your company is a separate legal entity which usually effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners are not personally liable to lose their personal holdings.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the number of directors end up being at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 with a maximum upper limit of 50. The number of directors must be 2.