There are some good main reasons why it makes ample sense to register your company. The first basic reason is preserve Online One Person Company Registration in India‘s own interests as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is simpler 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 enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is recorded.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or truly. And if the answer to method has . confident which has a resounding yes, then it is time for one to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to flourish it, your startup could be registered as the many legal formats belonging to the structure of a company available to you.
So i want to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. That’s a company managed or run by one particular individual. No registration becomes necessary. This is the method to be able to if you want to do it for yourself and the purpose of establishing business is gain a short-term goal. But this puts you liable to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the event of a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust between the partners. But similar in order to some proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that this company can be a separate legal entity which effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally liable to lose their personal power.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 with a maximum upper limit of 50. The number of directors must be 2.