There are a couple of good main reasons why it makes ample sense to register your company. The first basic reason is to safeguard Online One Person Company Registration in India‘s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and also is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (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 an additional is authorized.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to and also confident properly resounding yes, then then it’s time for in order to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the organization and like you would want to inflate it, your startup could be registered as among the many legal formats of the structure of the company accessible to you.
So allow me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by only 1 individual. No registration it will take. This is the method in order to if you want to do it for yourself and the objective of establishing the company is gain a short-term goal. But this puts you prone to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. For a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust between the partners. But similar using a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in how the company is often a separate legal entity which usually effect protects the owner from being personally to blame for any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no 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 maximum of 45. The number of directors must be 2.