There are many good good reason that it makes ample sense to register your tiny. The first basic reason is to guard One Person Company Registration in India online‘s own interests by no means risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited enterprise. (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 enterprise is recorded.
Very almost always there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to that is a confident and a resounding yes, then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and how i want to grow it, your startup can be registered as one of the many legal formats for this structure of the company accessible to you.
So allow me to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration is needed. This is the method to adopt if you must do it on your own and the purpose of establishing firm is obtain a short-term goal. But this puts you subject to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the event of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust regarding the partners. But similar to a proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in how the company is often a separate legal entity which in effect protects the owner from being personally to blame for any losses.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners are not 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 is no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 having a maximum maximum of fifty five. The number of directors must be 2.