There are a couple of good reasons why it makes ample sense to register your tiny. The first basic reason is to protect one’s own interests by no means risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is also forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes to transfer their shares to another it’s easier when company is recorded.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or truly. And if the answer to method has . confident which has a resounding yes, then then it’s time for Online One Person Company Registration in India to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the organization and like you would want to inflate it, your startup could be registered among the many legal formats of the structure associated with company available to you.
So permit me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by one particular individual. No registration it takes. This is the method to if you want to do it for yourself and the goal of establishing the company is to attain a short-term goal. But this puts you subject to losing your own 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 a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust between the partners. But similar using a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that the company is a separate legal entity which usually effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally liable 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’s no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 using a maximum maximum of 150. The number of directors must be 2.