There are a couple of good reasons why it makes ample sense to register your company. The first basic reason is guard Online One Person Company Registration in India‘s own interests and not risk personal belongings to the purpose 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 an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes to transfer their shares to another it’s easier when company is recorded.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, when 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 also resounding yes, then then it’s time for someone to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the organization and when there is want to grow it, your startup could be registered as among the many legal formats belonging to the structure associated with company available.
So permit me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by just one individual. No registration is needed. This is the method in order to if you want to do it for yourself and the objective of establishing the organization is obtain a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. You should a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust between the partners. But similar the proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that this company is often a separate legal entity within turn effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 having a maximum maximum of 150. The number of directors must be 2.