There are a few good good reason that it makes ample sense to register your company. The first basic reason is to guard one’s own interests but not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited reputable company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes to transfer their shares to another it’s easier when the company is enrolled.
Very almost always there is a dilemma as to when business should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to the confident and a resounding yes, then it’s time for in order to go ahead and Register One Person Company in India Online the start-up. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the actual and a method to want to be expanded it, your startup can be registered as the many legal formats with the structure on the company available to you.
So i want to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only individual. No registration becomes necessary. This is the method to if you wish to do it on your own and the purpose of establishing firm is to achieve 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 higher than two individuals. In the case of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust within partners. But similar to a proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a Person Company in how the company is a separate legal entity which effect protects the owner from being personally liable for any cutbacks.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal wide range.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum upper limit of 45. The number of directors must be 2.