There are a couple of good reasons why it makes ample sense to register your little. The first basic reason is preserve Online One Person Company Registration in India‘s own interests and is not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited enterprise. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when the company is authorized.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is good enough to be converted into a profitable business or not too. And if the answer to method has . confident too resounding yes, then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and like you would want to be expanded it, your startup could be registered among the many legal formats belonging to the structure in a company accessible to you.
So i want to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration is needed. This is the method in order to if for you to do it for yourself and the purpose of establishing business is to realize a short-term goal. But this puts you at risk 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. In the a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust in between the partners. But similar to a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that the company is really a separate legal entity which in effect protects the owner from being personally subject to 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 wealthiness.
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 number of directors end up being at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 using a maximum upper limit of 150. The number of directors must be 2.