There are a couple of good reasons why it makes ample sense to register your little. The first basic reason is to safeguard one’s own interests but not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and also is forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is subscribed. 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, in the eventuality of a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is registered.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to and also confident and also resounding yes, then it’s time for one to go ahead and register the international. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the actual and a method to want to flourish it, your startup could be registered as Online One Person Company Registration in India of the many legal formats of the structure of a company available.
So ok, i’ll first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only individual. No registration is actually required. This is the method to if for you to do it for yourself and the objective of establishing vehicle is to achieve a short-term goal. But this puts you at risk of losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. You should a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust regarding the partners. But similar using a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a Person Company in how the company is really a separate legal entity within turn effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 by using a maximum maximum of 150. The number of directors must be 2.