There are several good the actual reason why it makes ample sense to register your tiny. The first basic reason is guard one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and is also forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if an additional is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes managed their shares to another it’s easier when the company is recorded.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or truly. And if the answer to and also confident which has a resounding yes, then it’s time for in order to go ahead and register the startup. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the organization and the way you want to flourish it, your startup could be registered as Online One Person Company Registration in India of the many legal formats of the structure of a company available to you.
So ok, i’ll first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company managed or run by one particular individual. No registration it takes. This is the method to if you must do it yourself and the objective of establishing the organization is to achieve a short-term goal. But this puts you liable to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. For a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust between the partners. But similar in order to some proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that the company can be a separate legal entity which usually effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally prone to lose their personal wealth.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum upper limit of 50. The number of directors must be 2.