There are a few good the actual reason why it makes ample sense to register your tiny. The first basic reason is preserve One Person Company Registration in India online‘s own interests by no means risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and and that is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm 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, from a limited company, 1 wishes managed their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or not. And if the answer to that is a confident and a resounding yes, then it’s the perfect time for someone to go ahead and register the international. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the actual and when there is want to flourish it, your startup could be registered as the many legal formats with the structure on the 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 just one individual. No registration becomes necessary. This is the method to adopt if you must do it on your own and the reason for establishing business is to achieve a short-term goal. But this puts you at risk to losing your entire 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 the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust within partners. But similar to a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in that your company is often a separate legal entity which in effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally prone to lose their personal wealth.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 using a maximum maximum of 50. The number of directors must be 2.