There are a few good good reason that it makes ample sense to register your little. The first basic reason is to protect Online One Person Company Registration in India‘s own interests as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and also is forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited 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 an additional is enrolled.
Very often there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, if your business idea is good enough to be converted into a profitable business or not too. And if the answer to that is a confident and a resounding yes, then it’s the perfect time for in order to go ahead and register the start-up. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the business and how i want to inflate it, your startup could be registered as one of the many legal formats with the structure on the company open to you.
So permit me to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by one particular individual. No registration is needed. This is the method to be able to if you wish to do it alone and the purpose of establishing the company is to achieve a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the case of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust in between the partners. But similar in order to some proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that the company is a separate legal entity within turn effect protects the owner from being personally liable for any cutbacks.
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 liable to lose their personal power.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum upper limit of 50. The number of directors must be 2.