There are some good reasons why it makes ample sense to register your little. The first basic reason is guard one’s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes to transfer their shares to another it’s easier when an additional is recorded.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is good enough to be converted into a profitable business or not solely. And if the answer to method has . confident and also resounding yes, then it is time for in order to go ahead and Register One Person Company in India Online the international. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the actual and how i want to be expanded it, your startup could be registered as one of the many legal formats for this structure associated with company available to you.
So permit me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by one particular individual. No registration it takes. This is the method in order to if you wish to do it on your own and the objective of establishing firm is to achieve a short-term goal. But this puts you subject to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. You should a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust between the partners. But similar to a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in that the company is often a separate legal entity which effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally prone to lose their personal wealth.
e) Limited Company will be 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 the minimum number folks needed are 7 using a maximum maximum of 150. The number of directors must be 2.