There are many good good reason that it makes ample sense to register your little. The first basic reason is to guard one’s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is much 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 potentially a limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to that is a confident too resounding yes, then it is time for in order to go ahead and Register One Person Company in India Online the start-up. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the organization and like you would want to grow it, your startup could be registered as one of the many legal formats in the structure of a company available to you.
So allow me to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration becomes necessary. This is the method in order to if you must do it alone and the objective of establishing firm is gain a short-term goal. But this puts you at risk to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more 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 between the partners. But similar together with proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in which the company is really a separate legal entity within turn effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.