There are many good some reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard one’s own interests and not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is 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 group. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes managed their shares to another it’s easier when company is enrolled.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, when your business idea is good enough to be converted to a profitable business or truly. And if the answer to the confident too resounding yes, then then it’s time for in order to go ahead and Register One Person Company in India Online the start-up. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the business and the way you want to grow it, your startup could be registered as one of the many legal formats for this structure of a company accessible to you.
So allow me to first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration it takes. This is the method to if you want to do it yourself and the goal of establishing business is to attain 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 aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust between the partners. But similar together with proprietorship answer to your problem 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 that effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally liable to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 with a maximum maximum of 150. The number of directors must be 2.