There are several good reasons why it makes ample sense to register your tiny. The first basic reason is preserve one’s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited firm. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes managed their shares to another it’s easier when an additional is subscribed.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to and also confident and a resounding yes, then it is time for Online One Person Company Registration in India to go ahead and register the international. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to inflate it, your startup can be registered among the many legal formats in the structure on the company on the market.
So allow me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration it takes. This is the method in order to if you wish to do it all by yourself and the purpose of establishing the company is to realize a short-term goal. But this puts you subject to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust within partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that this company can be a separate legal entity within turn effect protects the owner from being personally accountable for any cutbacks.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally liable to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 along with a maximum maximum of 150. The number of directors must be 2.