There are a few good reasons why it makes ample sense to register your network. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is simpler 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 potentially a limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes managed their shares to another it’s easier when an additional is registered.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or not solely. And if the answer to method has . confident too resounding yes, then then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the business and like you would want to be expanded it, your startup could be registered as one of the many legal formats belonging to the structure of the company open to you.
So i want to first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only 1 individual. No registration is actually required. This is the method in order to if you wish to do it all by yourself and the goal of establishing firm is gain a short-term goal. But this puts you prone to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust in between the partners. But similar to a proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in how the company is often a separate legal entity within turn effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally liable to lose their personal wide range.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 along with a maximum maximum of fifty five. The number of directors must be 2.