There are a few good the actual reason why it makes ample sense to register your network. The first basic reason is to protect Online One Person Company Registration in India‘s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (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 the company is enrolled.
Very there’s always a dilemma as to when business should be registered. The answer to which is, primarily, in case business idea is good enough to be converted to a profitable business or not. And if the answer to method has . confident and also resounding yes, then then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to flourish it, your startup can be registered as among the many legal formats in the structure on the company accessible to you.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by just one individual. No registration it will take. This is the method to be able to if you want to do it yourself and the purpose of establishing firm is to realize a short-term goal. But this puts you subject 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. In the case of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust in between the partners. But similar together with proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that this company can be a separate legal entity within turn effect protects the owner from being personally accountable for any obligations.
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 are not 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 connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 with a maximum maximum of fifty five. The number of directors must be 2.