There are many good main reasons why it makes ample sense to register your company. The first basic reason is preserve Online One Person Company Registration in India‘s own interests as an alternative to risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes managed their shares to another it’s easier when company is registered.
Very almost always there is a dilemma as to when a lot more claims should be registered. The solution 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 the confident too resounding yes, then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of corporation and a method to want to be expanded it, your startup could be registered as the many legal formats in the structure of a company open to you.
So ok, i’ll first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by only individual. No registration is actually required. This is the method to if you want to do it all by yourself and the objective of establishing business is to achieve 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 higher than two individuals. You should a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust regarding the partners. But similar using a proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a Person Company in which the company can be a separate legal entity which in effect protects the owner from being personally subject to any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 with a maximum maximum of 45. The number of directors must be 2.