There are several good main reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and and that is forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited group. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it’s easier when group is registered.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or not solely. And if the answer to the confident too resounding yes, then then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it’s 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 a method to want to inflate it, your startup can be registered as among the many legal formats in the structure of a company open to you.
So let me first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by just one individual. No registration is actually required. This is the method to be able to if you wish to do it alone and the objective of establishing firm is to realize a short-term goal. But this puts you at risk of losing your own 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, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a involving trust concerning the partners. But similar together with proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that your company is a separate legal entity within turn effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), from where 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 power.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 along with a maximum upper limit of 45. The number of directors must be 2.