There are several good some reasons why it makes ample sense to register your company. The first basic reason is guard one’s own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is registered. 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, 1 wishes managed their shares to another it’s easier when group is enrolled.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to that is a confident and also resounding yes, then it’s time for in order to go ahead and Register One Person Company in India Online the startup. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the business and like you would want to inflate it, your startup could be registered as one of the many legal formats of the structure on the company open to you.
So ok, i’ll first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration becomes necessary. This is the method in order to if for you to do it on your own and the objective of establishing firm is obtain a short-term goal. But this puts you prone 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, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust within partners. But similar using a proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that this company can be a separate legal entity which usually effect protects the owner from being personally to blame for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 along with a maximum maximum of 150. The number of directors must be 2.