There are a couple of good reasons why it makes ample sense to register your network. The first basic reason is guard One Person Company Registration in India online‘s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited firm. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes to transfer their shares to another it’s easier when group is authorized.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to that is a confident and a resounding yes, then then it’s time for in order 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 could be saddled with liabilities.
Depending upon the size and type of the business and the way you want to inflate it, your startup can be registered as the many legal formats of the structure in a company on the market.
So allow me to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration it will take. This is the method to adopt if you want to do it for yourself and the objective of establishing the company is gain 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 more than two individuals. In the a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust within partners. But similar the proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that this company is a separate legal entity which effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company that 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 needed are 7 having a maximum upper limit of 150. The number of directors must be 2.