There are a few good good reason that it makes ample sense to register your network. The first basic reason is preserve Online One Person Company Registration in India‘s own interests as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is also forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is authorized.
Very there’s always a dilemma as to when the corporate should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to the confident too resounding yes, then then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of enterprise enterprise and like you would want to expand it, your startup can be registered among the many legal formats belonging to the structure associated with company available to you.
So let me first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by 1 individual. No registration is actually required. This is the method to if you should do it alone and the purpose of establishing the organization is to realize a short-term goal. But this puts you liable to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the case of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust in between the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is single Person Company in which the company is a separate legal entity that effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 by using a maximum maximum of 45. The number of directors must be 2.