There are many good some reasons why it makes ample sense to register your tiny. The first basic reason is to guard one’s own interests and is not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited firm. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes managed their shares to another it’s easier when the company is subscribed.
Very almost always there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, in case business idea is good enough to be converted into a profitable business or never ever. And if the answer to the confident too resounding yes, then it is time for One Person Company Registration in India online to go ahead and register the start-up. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of corporation and the way you want to expand it, your startup could be registered as among the many legal formats for this structure on the company available to you.
So allow me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by 1 individual. No registration becomes necessary. This is the method to if you wish to do it all by yourself and the reason for establishing business is gain 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 higher than two individuals. For a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust concerning the partners. But similar in order to some proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that the company is really a separate legal entity which effect protects the owner from being personally to blame for any losses.
d) Limited Liability Partnership (LLP), that 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 wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 having a maximum maximum of 45. The number of directors must be 2.