There are some good some reasons why it makes ample sense to register your little. The first basic reason is to safeguard one’s own interests and not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes managed their shares to another it’s easier when enterprise is recorded.
Very there’s always a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is good enough to be converted to a profitable business or not solely. And if the answer to that is a confident which has a resounding yes, then then it’s time for One Person Company Registration in India online to go ahead and register the investment. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the business and a method to want to inflate it, your startup could be registered among the many legal formats for this structure in a company on the market.
So permit me to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration it will take. This is the method to be able to if you must do it all by yourself and the reason for establishing the organization is to attain a short-term goal. But this puts you subject to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. For a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust between the partners. But similar together with proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that this company is often a separate legal entity which in effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally liable to lose their personal holdings.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 by using a maximum maximum of corporation. The number of directors must be 2.