There are some good main reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests as an alternative to risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes managed their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted to a profitable business or not. And if the answer to that is a confident properly resounding yes, then it is time for someone to go ahead and register the new. And as mentioned earlier on it’s usually beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the actual and when there is want to flourish it, your startup can be registered among the many legal formats for this structure in a company on the market.
So let me first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by 1 individual. No registration is actually required. This is the method to be able to if for you to do it on your own and the goal of establishing business is gain a short-term goal. But this puts you liable to losing complete 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 laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust in between the partners. But similar to a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that your company is often a separate legal entity which effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally prone 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 a upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 with a maximum maximum of fifty five. The number of directors must be 2.