There are a couple of good reasons why it makes ample sense to register your tiny. The first basic reason is to guard Online One Person Company Registration in India‘s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is 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 and even limited reputable company. (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 enrolled.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, when your business idea is good enough to be converted to a profitable business or never ever. And if the answer to method has . confident and a resounding yes, then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it is always beneficial find a quote as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the actual and like you would want to expand it, your startup can be registered as the many legal formats belonging to the structure of the company available to you.
So let me first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by 1 individual. No registration it takes. This is the method in order to if you should do it on your own and the purpose of establishing firm is gain 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 or maybe than two individuals. In the event of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust concerning the partners. But similar in order to some proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in how the company is often a separate legal entity within turn effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the number of directors end up being at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 using a maximum upper limit of fifty five. The number of directors must be 2.