There are some good some reasons why it makes ample sense to register your tiny. The first basic reason is guard One Person Company Registration in India online‘s own interests and is not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if the company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes to transfer their shares to another it’s easier when the company is registered.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to and also confident which has a resounding yes, then it is time for one to go ahead and register the start-up. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the organization and a method to want to flourish it, your startup could be registered as one of the many legal formats of the structure in a company open to you.
So permit me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by one particular individual. No registration becomes necessary. This is the method to if you wish to do it alone and the objective of establishing business is to achieve a short-term goal. But this puts you liable to losing all your 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, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust between the partners. But similar the proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a Person Company in which the company is often a separate legal entity which in effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners are not personally liable to lose their personal holdings.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 by using a maximum maximum of corporation. The number of directors must be 2.