There are a couple of good good reason that it makes ample sense to register your network. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is a lot easier 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 or 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 group is subscribed.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is good enough to be converted to a profitable business or never ever. And if the answer to and also confident properly resounding yes, then it’s time for one to go ahead and register the startup. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of corporation and the way you want to inflate it, your startup could be registered as one of the many legal formats of the structure associated with company available.
So permit me to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by 1 individual. No registration is actually required. This is the method to if you should do it on your own and the objective of establishing the organization is to achieve a short-term goal. But this puts you at risk to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust within partners. But similar the proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that your company is a separate legal entity which usually effect protects the owner from being personally to blame for any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.