There are some good good reason that it makes ample sense to register your company. The first basic reason is guard One Person Company Registration in India online‘s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and also is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes to transfer their shares to another it’s easier when enterprise is subscribed.
Very almost always there is a dilemma as to when business should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to that is a confident properly resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the business and how i want to be expanded it, your startup can be registered among the many legal formats for this structure of a company on the market.
So allow me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration is actually required. This is the method to adopt if you want to do it yourself and the goal of establishing business is to realize a short-term goal. But this puts you at risk to 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 relates to a lot of trust between the partners. But similar using a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in which the company can be a separate legal entity within turn effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren’t personally liable to lose their personal wide range.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 by using a maximum upper limit of fifty five. The number of directors must be 2.