There are some good good reason that it makes ample sense to register your tiny. The first basic reason is guard One Person Company Registration in India online‘s own interests but not risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and is also forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes managed their shares to another it’s easier when group is recorded.
Very often there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to method has . confident which has a resounding yes, then it’s the perfect time for one to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of enterprise enterprise and the way you want to grow it, your startup can be registered as among the many legal formats in the structure associated with company on the market.
So let me first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration it takes. This is the method in order to if you should do it all by yourself and the objective of establishing firm is to achieve a short-term goal. But this puts you subject to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust regarding the partners. But similar the proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is single Person Company in which the company is a separate legal entity within turn effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners are not personally liable 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 isn’t any upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 having a maximum maximum of 45. The number of directors must be 2.