There are a couple of good good reason that it makes ample sense to register your specialist. The first basic reason is guard Online One Person Company Registration in India‘s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is also forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes to transfer their shares to another it’s easier when an additional is registered.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is good enough to be converted into a profitable business or not solely. And if the answer to that is a confident and a resounding yes, then it’s time for someone to go ahead and register the international. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of corporation and when there is want to grow it, your startup could be registered as the many legal formats in the structure of a company available to you.
So i want to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only individual. No registration becomes necessary. This is the method to be able to if you wish to do it all by yourself and the objective of establishing firm is to realize a short-term goal. But this puts you at risk to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. For a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust concerning the partners. But similar the proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in which the company is a separate legal entity that effect protects the owner from being personally liable for any damages.
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 prone to lose their personal power.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the associated with directors must be 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 50. The number of directors must be 2.