There are many good the actual reason why it makes ample sense to register your network. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is much 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 even a limited reputable company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when enterprise is recorded.
Very there’s always a dilemma as to when organization should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to the confident which has a resounding yes, then it is time for one to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the business and when there is want to be expanded it, your startup could be registered as one of the many legal formats with the structure associated with company on the market.
So allow me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by one particular individual. No registration it takes. This is the method in order to if you wish to do it alone and the reason for establishing vehicle is to realize a short-term goal. But this puts you liable to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the event of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust between the partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that your company is really a separate legal entity which usually effect protects the owner from being personally to blame 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 business and the partners aren’t personally liable to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum upper limit of corporation. The number of directors must be 2.