There are a few good the actual reason why it makes ample sense to register your network. The first basic reason is guard Online One Person Company Registration in India‘s own interests and not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and and that is forced to close 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 or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it’s easier when group is authorized.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or not too. And if the answer to that is a confident and also resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the business and how i want to flourish it, your startup can be registered as among the many legal formats of the structure of a company accessible to you.
So permit me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration becomes necessary. This is the method to if for you to do it all by yourself and the objective of establishing vehicle 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 maybe than two individuals. In the a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust regarding the partners. But similar using a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in which the company is really a separate legal entity that effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal holdings.
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 must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 having a maximum upper limit of corporation. The number of directors must be 2.