There are some good reasons why it makes ample sense to register your tiny. The first basic reason is to protect One Person Company Registration in India online‘s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if this company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited group. (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 company is authorized.
Very often 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 to a profitable business or never ever. And if the answer to the confident too resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the actual and a method to want to grow it, your startup can be registered among the many legal formats of the structure in a company accessible to you.
So permit me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration it will take. This is the method to be able to if you should do it for yourself and the objective of establishing business is to achieve a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. For a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar to a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in which the company is often a separate legal entity that effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally prone to lose their personal wealth.
e) Limited Company that 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 the minimum number folks needed are 7 using a maximum upper limit of corporation. The number of directors must be 2.