There are some good good reason that it makes ample sense to register your network. The first basic reason is to protect One Person Company Registration in India online‘s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is a lot easier 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 potentially a limited enterprise. (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 company is recorded.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to and also confident which has a resounding yes, then it is time for someone to go ahead and register the investment. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of corporation and how i want to inflate it, your startup can be registered as the many legal formats of the structure of the company available to you.
So permit me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only individual. No registration becomes necessary. This is the method to adopt if you want to do it for yourself and the goal of establishing firm is obtain a short-term goal. But this puts you at risk of losing every 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 event of a Partnership firm, as the laws are not 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 thankfully risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that the company is a separate legal entity within turn effect protects the owner from being personally accountable for any cutbacks.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally prone to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 using a maximum upper limit of 45. The number of directors must be 2.