There are several good some reasons why it makes ample sense to register your tiny. The first basic reason is to guard One Person Company Registration in India online‘s own interests and not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and and that is forced to shut 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 and even limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes managed their shares to another it’s easier when the company is authorized.
Very there’s always a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident which has a resounding yes, then it is time for one to go ahead and register the investment. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the actual and the way you want to inflate it, your startup could be registered as one of the many legal formats in the structure in a company on the market.
So permit me to first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by one particular individual. No registration is needed. This is the method to if you should do it all by yourself and the goal of establishing firm is to realize 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 more than two individuals. In the case of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust between the partners. But similar together with proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in that the company can be a separate legal entity that effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), that 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 wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 having a maximum maximum of corporation. The number of directors must be 2.