There are some good the actual reason why it makes ample sense to register your company. The first basic reason is to protect Online One Person Company Registration in India‘s own interests by no means risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to seal 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 or a limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes to transfer their shares to another it’s easier when the company is enrolled.
Very often there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to that is a confident too resounding yes, then it’s time for someone to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the business and a method to want to inflate it, your startup could be registered among the many legal formats belonging to the structure on the company on the market.
So allow me to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration is actually required. This is the method to adopt if for you to do it alone and the goal of establishing the company is to achieve a short-term goal. But this puts you at risk to losing your entire 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, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust within partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in which the company can be a separate legal entity which usually effect protects the owner from being personally subject to any cutbacks.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 using a maximum upper limit of 150. The number of directors must be 2.