There are a couple of good reasons why it makes ample sense to register your company. The first basic reason is to protect Online One Person Company Registration in India‘s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes managed their shares to another it’s easier when the company is authorized.
Very there’s always a dilemma as to when business 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. And if the answer to that is a confident and a resounding yes, then then it’s time for in order to go ahead and register the international. 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 when there is want to flourish it, your startup could be registered among the many legal formats for this structure on the company on the market.
So allow me to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only 1 individual. No registration it takes. This is the method to if for you to do it for yourself and the reason for establishing the organization is to attain a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust between the partners. But similar together with proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in which the company is really a separate legal entity within turn effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally prone to lose their personal wide range.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 by using a maximum upper limit of corporation. The number of directors must be 2.