There are a couple of good main reasons why it makes ample sense to register your tiny. The first basic reason is guard one’s own interests and not risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and and that is forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited group. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes managed their shares to another it’s easier when an additional is registered.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, when the business idea is good enough to be converted into a profitable business or truly. And if the answer to and also confident and also 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’s always beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to be expanded it, your startup can be registered as among the many legal formats of the structure of the company available to you.
So i want to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by one particular individual. No registration it takes. This is the method to be able to if you must do it on your own and the goal of establishing the company is to realize a short-term goal. But this puts you liable to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust concerning the partners. But similar in order to some proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in which the company can be a separate legal entity that effect protects the owner from being personally to blame for any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally prone to lose their personal power.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 using a maximum upper limit of 50. The number of directors must be 2.