There are a couple of good reasons why 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 and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is subscribed. 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, in case of a limited company, 1 wishes managed their shares to another it’s easier when an additional is authorized.
Very there’s always a dilemma as to when the corporate should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not. And if the answer to that is a confident properly resounding yes, then then it’s time for in order to go ahead and register the startup. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the organization and how i want to grow it, your startup could be registered as the many legal formats belonging to the structure associated with company on the market.
So i want to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by 1 individual. No registration is needed. This is the method to adopt if for you to do it on your own and the purpose of establishing the organization is to achieve a short-term goal. But this puts you at risk to 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. For a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust within partners. But similar to a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in how the company can be a separate legal entity that effect protects the owner from being personally responsible for any cutbacks.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally liable to lose their personal holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 using a maximum maximum of corporation. The number of directors must be 2.