There are a couple of good reasons why it makes ample sense to register your little. The first basic reason is preserve Online One Person Company Registration in India‘s own interests but not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is easier 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 or even a limited firm. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when company is registered.
Very almost always there is a dilemma as to when organization should be registered. The solution to which is, primarily, when the business idea is good enough to be converted into a profitable business or truly. And if the answer to and also confident and a resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and a method to want to be expanded it, your startup could be registered as the many legal formats belonging to the structure of the company available.
So permit me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only 1 individual. No registration it takes. This is the method to adopt if you should do it for yourself and the goal of establishing the company is gain a short-term goal. But this puts you liable to losing your own 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 case of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust in between the partners. But similar together with proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that the company is often a separate legal entity that effect protects the owner from being personally to blame for any damages.
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 holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 using a maximum maximum of fifty five. The number of directors must be 2.