There are a few good main reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard one’s own interests as an alternative to risk personal belongings to the point of 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 disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, if One Person Company Registration in India online wishes to transfer their shares to another it’s easier when company is registered.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, when your business idea is good enough to be converted to a profitable business or not too. And if the answer to and also confident properly resounding yes, then it’s the perfect time for someone to go ahead and register the investment. And as mentioned earlier on it’s usually beneficial find a quote as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the organization and how i want to flourish it, your startup can be registered as one of the many legal formats belonging to the structure in a company open to you.
So ok, i’ll first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by 1 individual. No registration it will take. This is the method in order to if you must do it on your own and the reason for establishing the company is obtain a short-term goal. But this puts you at risk to losing every 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 event of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust between the partners. But similar to a proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a Person Company in which the company is often a separate legal entity which usually effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 having a maximum upper limit of 150. The number of directors must be 2.