There are some good reasons why it makes ample sense to register your company. The first basic reason is to guard one’s own interests by no means risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes managed their shares to another it’s easier when an additional is enrolled.
Very often there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not. And if the answer to the confident too resounding yes, then then it’s time for one to go ahead and Register One Person Company in India Online the startup. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the business and the way you want to expand it, your startup can be registered among the many legal formats belonging to the structure in a company open to you.
So allow me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by just one individual. No registration is actually required. This is the method to if you should do it all by yourself and the reason for establishing the company is to achieve a short-term goal. But this puts you subject to losing your own 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, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust in between the partners. But similar in order to some proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a Person Company in that the company is really a separate legal entity which in effect protects the owner from being personally to blame for any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally liable to lose their personal power.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 by using a maximum maximum of 150. The number of directors must be 2.