There are several good good reason that it makes ample sense to register your specialist. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests but not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes managed their shares to another it’s easier when group is recorded.
Very there’s always a dilemma as to when organization 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 one to go ahead and register the start-up. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the actual and how i want to expand it, your startup could be registered as one of the many legal formats in the structure of the company open to you.
So permit me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by just one individual. No registration it takes. This is the method to be able to if you wish to do it for yourself and the goal of establishing firm is to achieve a short-term goal. But this puts you prone 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 event of a Partnership firm, just 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 answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that your company can be a separate legal entity that effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally liable to lose their personal power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 with a maximum maximum of 50. The number of directors must be 2.