There are several good some reasons why it makes ample sense to register your tiny. The first basic reason is guard One Person Company Registration in India online‘s own interests by no means risk personal assets to the point of facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is registered. 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, just in case a limited company, if wishes to transfer their shares to another it’s easier when an additional is subscribed.
Very often 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 to a profitable business or not solely. And if the answer to that is a confident and a resounding yes, then it’s the perfect time for one to go ahead and register the investment. And as mentioned earlier on it will be beneficial to create it happen as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of corporation and when there is want to inflate it, your startup can be registered among the many legal formats in the structure of the company on the market.
So let me first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration becomes necessary. This is the method to if for you to do it yourself and the goal of establishing the company is to realize a short-term goal. But this puts you at risk of losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the case of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust between the partners. But similar the proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that the company can be a separate legal entity which effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal holdings.
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 regarding directors should be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 using a maximum upper limit of 150. The number of directors must be 2.