There are a couple of good some reasons why it makes ample sense to register your company. The first basic reason is to guard Online One Person Company Registration in India‘s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (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 group is authorized.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is good enough to be converted into a profitable business or truly. And if the answer to that is a confident too resounding yes, then then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of corporation and like you would want to flourish it, your startup could be registered as the many legal formats in the structure of a company open to you.
So i want to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by 1 individual. No registration is actually required. This is the method in order to if you want to do it yourself and the objective of establishing the company is to realize a short-term goal. But this puts you prone 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. You should a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust concerning the partners. But similar the proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that this company is a separate legal entity that effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally liable to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 with a maximum upper limit of 50. The number of directors must be 2.