There are many good some reasons why it makes ample sense to register your tiny. The first basic reason is preserve One Person Company Registration in India online‘s own interests by no means risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and and that is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes managed their shares to another it’s easier when the company is recorded.
Very almost always there is a dilemma as to when business should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not. And if the answer to method has . confident too resounding yes, then it’s the perfect time for in order to go ahead and register the international. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the organization and a method to want to grow it, your startup could be registered as one of the many legal formats for this structure of a company available to you.
So ok, i’ll first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only individual. No registration becomes necessary. This is the method to if you wish to do it for yourself and the objective of establishing firm is gain a short-term goal. But this puts you liable to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the event of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust regarding the partners. But similar to a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in that this company is often a separate legal entity which effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company will be 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 minimal number folks needed are 7 by using a maximum maximum of fifty five. The number of directors must be 2.