There are several good some reasons why it makes ample sense to register your tiny. The first basic reason is guard one’s own interests and is not risk personal belongings to the aim 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 this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if Online One Person Company Registration in India wishes to transfer their shares to another it’s easier when enterprise is subscribed.
Very often there is a dilemma as to when a lot more claims 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 the confident which has a resounding yes, then it’s the perfect time for one to go ahead and register the investment. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of corporation and the way you want to be expanded it, your startup could be registered as the many legal formats of the structure of the company available to you.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration it will take. This is the method in order to if you want to do it yourself and the purpose of establishing vehicle is to realize a short-term goal. But this puts you subject to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust regarding the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a Person Company in that your 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), where the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners are not personally liable to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 along with a maximum maximum of 45. The number of directors must be 2.