There are a few good the actual reason why it makes ample sense to register your company. The first basic reason is to protect One Person Company Registration in India online‘s own interests but not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and and that is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is registered. 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, any time a limited company, if one wishes managed their shares to another it’s easier when company is authorized.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, if your business idea is good enough to be converted to a profitable business or not solely. And if the answer to that is a confident and a resounding yes, then it’s the perfect time for in order to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the business and a method to want to be expanded it, your startup could be registered as one of the many legal formats of the structure on the company on the market.
So i want to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only individual. No registration is needed. This is the method to be able to if for you to do it for yourself and the objective of establishing business is to attain a short-term goal. But this puts you at risk of losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. You should a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust regarding the partners. But similar the proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in which the company can be a separate legal entity which effect protects the owner from being personally responsible for any cutbacks.
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 prone to lose their personal holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 having a maximum upper limit of corporation. The number of directors must be 2.