There are some good main reasons why it makes ample sense to register your specialist. The first basic reason is to safeguard Online One Person Company Registration in India‘s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is recorded.
Very almost always there is a dilemma as to when business should be registered. The solution to which is, primarily, when your business idea is good enough to be converted to a profitable business or not. And if the answer to the confident and a resounding yes, then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the organization and the way you want to grow it, your startup can be registered as among the many legal formats with the structure of a company on the market.
So ok, i’ll first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only 1 individual. No registration it will take. This is the method to adopt if you wish to do it all by yourself and the purpose of establishing firm is obtain a short-term goal. But this puts you at risk to losing every 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 case of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust within partners. But similar in order to some proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that your company is often a separate legal entity which in effect protects the owner from being personally responsible for any cutbacks.
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 aren’t personally liable to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal 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 minimal number of folks that needed are 7 along with a maximum maximum of 50. The number of directors must be 2.