There are a few good the actual reason why it makes ample sense to register your company. The first basic reason is to safeguard one’s own interests and not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when company is subscribed.
Very almost always there is a dilemma as to when organization should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to that is a confident too resounding yes, then it’s time for One Person Company Registration in India online to go ahead and register the investment. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of corporation and a method to want to flourish it, your startup could be registered as the many legal formats with the structure of the company available.
So i want to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by only individual. No registration becomes necessary. This is the method in order to if for you to do it all by yourself and the reason for establishing the organization is gain a short-term goal. But this puts you subject to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the event of a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust regarding the partners. But similar using a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that this company is really 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 best of partnership firm and a company and the partners are not personally prone to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 with a maximum upper limit of corporation. The number of directors must be 2.