There are a few good some reasons why it makes ample sense to register your company. The first basic reason is to protect one’s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited firm. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes managed their shares to another it’s easier when an additional is subscribed.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, when your business idea is good enough to be converted to a profitable business or never ever. And if the answer to method has . confident and also resounding yes, then then it’s time for in order to go ahead and Register One Person Company in India Online the investment. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of enterprise enterprise and when there is want to inflate it, your startup could be registered as the many legal formats belonging to the structure of a company on the market.
So let me first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration becomes necessary. This is the method to be able to if you should do it yourself and the objective of establishing the organization is to achieve 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 even more than two individuals. In the case of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar the proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that this company is really a separate legal entity which effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally prone to lose their personal holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 by using a maximum maximum of 45. The number of directors must be 2.