There are some good some reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard Online One Person Company Registration in India‘s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and and that is forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes managed their shares to another it’s easier when group is recorded.
Very there’s always a dilemma as to when organization should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to method has . confident and a resounding yes, then it is time for in order to go ahead and register the startup. And as mentioned earlier on it will be beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the business and when there is want to flourish it, your startup could be registered as the many legal formats of the structure in a company open to you.
So ok, i’ll first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration it will take. This is the method in order to if you want to do it all by yourself and the goal of establishing the organization is to attain a short-term goal. But this puts you at risk to losing every 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 case of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust concerning the partners. But similar using a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in how the company is really a separate legal entity which usually effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners aren’t personally liable to lose their personal holdings.
e) Limited Company that’s 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 minimal number persons needed are 7 using a maximum maximum of 45. The number of directors must be 2.