There are several good reasons why it makes ample sense to register your specialist. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests but not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited reputable company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes managed their shares to another it’s easier when company is enrolled.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is good enough to be converted into a profitable business or not too. And if the answer to that is a confident and a resounding yes, then it is time for one to go ahead and register the international. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the actual and when there is want to expand it, your startup can be registered as among the many legal formats in the structure in a company on the market.
So permit me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only 1 individual. No registration becomes necessary. This is the method to adopt if you should do it for yourself and the purpose of establishing vehicle is to realize a short-term goal. But this puts you at risk of losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust within partners. But similar using a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that the company can be a separate legal entity that effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners are not personally liable to lose their personal wide range.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 using a maximum maximum of fifty five. The number of directors must be 2.