There are several good the actual reason why it makes ample sense to register your specialist. The first basic reason is to guard One Person Company Registration in India online‘s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited enterprise. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes managed their shares to another it’s easier when the company is recorded.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, when 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 which has a resounding yes, then it’s time for one to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and a method to want to grow it, your startup can be registered as one of the many legal formats with the structure of the company open to you.
So let me first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by 1 individual. No registration is actually required. This is the method to adopt if for you to do it on your own and the objective of establishing the company is obtain a short-term goal. But this puts you prone to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust between the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in which the company is a separate legal entity which in 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 best of partnership firm and a company and the partners aren’t personally liable to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 having a maximum upper limit of 150. The number of directors must be 2.