There are many good good reason that it makes ample sense to register your tiny. The first basic reason is to guard Online One Person Company Registration in India‘s own interests as an alternative to risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is a lot 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 maybe limited enterprise. (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 an additional is enrolled.
Very there’s always a dilemma as to when organization should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted into a profitable business or never ever. And if the answer to and also confident which has a 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 always beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the actual and a method to want to expand it, your startup could be registered as the many legal formats for this structure of the company on the market.
So allow me to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration is needed. This is the method in order to if you should do it for yourself and the objective of establishing the company is to realize a short-term goal. But this puts you at risk of losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more 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 in between the partners. But similar in order to some proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that this company is really a separate legal entity which usually effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally liable to lose their personal wide range.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 along with a maximum maximum of 50. The number of directors must be 2.