There are a couple of good reasons why it makes ample sense to register your little. The first basic reason is to guard one’s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and and that is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes to transfer their shares to another it’s easier when group is recorded.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not. And if the answer to that is a confident and a 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 write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the actual and how i want to inflate it, your startup can be registered among the many legal formats in the structure on the company accessible to you.
So ok, i’ll first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only individual. No registration is actually required. This is the method to if for you to do it all by yourself and the objective of establishing the organization is to realize a short-term goal. But this puts you at risk of losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. For a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust within partners. But similar together with proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in that the company is a separate legal entity within turn effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.