There are several good reasons why it makes ample sense to register your tiny. The first basic reason is preserve Online One Person Company Registration in India‘s own interests but not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when enterprise is enrolled.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to that is a confident which has a resounding yes, then it is time for someone to go ahead and register the international. And as mentioned earlier on it will be beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the organization and a method to want to grow it, your startup could be registered as among the many legal formats in the structure in a company accessible to you.
So permit me to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by only 1 individual. No registration it will take. This is the method to adopt if you want to do it alone and the objective of establishing the company is to realize a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust between the partners. But similar in order to some proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in which the company is really a separate legal entity that 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 best of partnership firm and an organisation 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’s really no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 by using a maximum upper limit of corporation. The number of directors must be 2.