There are many good the actual reason why it makes ample sense to register your tiny. The first basic reason is guard one’s own interests as an alternative to risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes managed their shares to another it’s easier when group is enrolled.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to that is a confident properly resounding yes, then it’s time for One Person Company Registration in India online to go ahead and register the startup. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of corporation and when there is want to expand it, your startup can be registered as one of the many legal formats for this structure of the company available.
So i want to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by 1 individual. No registration it takes. This is the method to if you must do it all by yourself and the purpose of establishing business is to achieve a short-term goal. But this puts you liable to losing your own 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, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a involving trust concerning the partners. But similar together with proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in how the company is often a separate legal entity which in effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally liable to lose their personal wide range.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 by using a maximum maximum of 50. The number of directors must be 2.