There are some good the actual reason why it makes ample sense to register your tiny. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes managed their shares to another it’s easier when company is registered.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, if your 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 the perfect time for in order to go ahead and register the international. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the business and when there is want to grow it, your startup could be registered among the many legal formats in the structure of the company open to you.
So allow me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by just one individual. No registration becomes necessary. This is the method to adopt if you must do it on your own and the goal of establishing the organization is to attain a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. For a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust regarding the partners. But similar to a proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in which the company is often a separate legal entity which effect protects the owner from being personally accountable for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal 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 persons needed are 7 along with a maximum maximum of 45. The number of directors must be 2.