There are several good main reasons why it makes ample sense to register your specialist. The first basic reason is to guard Online One Person Company Registration in India‘s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is 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 or even a limited company. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes to transfer their shares to another it’s easier when group is authorized.
Very there’s always a dilemma as to when the corporate should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to that is a confident and also resounding yes, then it is time for in order to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial find a quote as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the organization and the way you want to grow it, your startup could be registered as among the many legal formats of the structure associated with company available to you.
So permit me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration is needed. This is the method to adopt if you should do it on your own and the objective of establishing business is gain a short-term goal. But this puts you liable 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 event of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust in between the partners. But similar in order to some proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that the company can be a separate legal entity which usually 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 very best of partnership firm and a business and the partners aren’t personally prone to lose their personal power.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum maximum of 45. The number of directors must be 2.