There are many good reasons why it makes ample sense to register your company. The first basic reason is guard Online One Person Company Registration in India‘s own interests but not risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is subscribed. 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, just in case a limited company, 1 wishes managed their shares to another it’s easier when group is registered.
Very there’s always 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. And if the answer to that is a confident and a resounding yes, then it is time for one to go ahead and register the international. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to inflate it, your startup could be registered among the many legal formats belonging to the structure of a company open to you.
So permit me to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by one particular individual. No registration becomes necessary. This is the method to adopt if you want to do it all by yourself and the reason for establishing the company is to achieve 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 maybe than two individuals. In the case of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust regarding the partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in which the company is often a separate legal entity within turn 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 a business and the partners are not personally liable to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 with a maximum upper limit of fifty five. The number of directors must be 2.