There are some good good reason that it makes ample sense to register your tiny. The first basic reason is to protect one’s own interests and is not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when enterprise is registered.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, when your business idea is good enough to be converted to a profitable business or not solely. And if the answer to that is a confident which has a resounding yes, then then it’s time for Online One Person Company Registration in India to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the business and the way you want to flourish it, your startup could be registered as among the many legal formats belonging to the structure of a company accessible to you.
So permit me to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only individual. No registration it will take. This is the method to adopt if you should do it alone and the objective of establishing the organization is to attain a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. For a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust concerning the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that your company is often a separate legal entity which in effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally prone to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 having a maximum maximum of 45. The number of directors must be 2.