There are several good the actual reason why it makes ample sense to register your little. The first basic reason is preserve one’s own interests but not risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and also is forced to close 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 maybe limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if Online One Person Company Registration in India wishes to transfer their shares to another it’s easier when group is enrolled.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to and also confident and a resounding yes, then it’s the perfect time for one to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and a method to want to inflate it, your startup can be registered as one of the many legal formats in the structure of the company open to you.
So let me first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by only 1 individual. No registration becomes necessary. This is the method to be able to if for you to do it for yourself and the goal of establishing vehicle is to realize a short-term goal. But this puts you at risk to losing complete 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 being laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar using a proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a Person Company in that your company is a separate legal entity which in effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally liable to lose their personal holdings.
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 quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 along with a maximum upper limit of 45. The number of directors must be 2.