There are a few good main reasons why it makes ample sense to register your company. The first basic reason is to protect Online One Person Company Registration in India‘s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited firm. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it’s easier when the company is subscribed.
Very there’s always a dilemma as to when organization should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not. And if the answer to the confident properly resounding yes, then then it’s time for in order 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 could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to expand it, your startup could be registered as among the many legal formats for this structure of a company accessible to you.
So ok, i’ll first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by one particular individual. No registration is needed. This is the method to be able to if you must do it alone and the reason for establishing the company is gain a short-term goal. But this puts you liable to losing your entire 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 event of a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust regarding the partners. But similar in order to some proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that this company can be a separate legal entity that effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners aren’t personally liable to lose their personal wealth.
e) Limited Company will be 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 should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum upper limit of 45. The number of directors must be 2.