There are a few good main reasons why it makes ample sense to register your specialist. The first basic reason is guard One Person Company Registration in India online‘s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when the company is authorized.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, when your business idea is good enough to be converted to a profitable business or never ever. And if the answer to method has . confident and also resounding yes, then then it’s time for one 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 are saddled with liabilities.
Depending upon the type and size of the organization and when there is want to be expanded it, your startup could be registered among the many legal formats for this structure on the company accessible to you.
So i want to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by just one individual. No registration is actually required. This is the method to adopt if for you to do it on your own and the reason for establishing firm is to achieve a short-term goal. But this puts you prone 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, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust regarding the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in how the company is a separate legal entity which in 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 very best of partnership firm and an organisation and the partners are not personally prone to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 with a maximum upper limit of fifty five. The number of directors must be 2.