There are many good some reasons why it makes ample sense to register your network. The first basic reason is to protect One Person Company Registration in India online‘s own interests as an alternative to risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when the company is enrolled.
Very almost always there is a dilemma as to when organization should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted to a profitable business or not. And if the answer to the confident properly resounding yes, then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it is always beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the business and when there is want to expand it, your startup can be registered as the many legal formats in the structure associated with company available.
So ok, i’ll first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration is actually required. This is the method to be able to if you want to do it all by yourself and the objective of establishing firm is to attain a short-term goal. But this puts you liable to losing all your 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 case of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust within partners. But similar in order to some proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that your company is a separate legal entity which effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t 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 is no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 with a maximum maximum of 150. The number of directors must be 2.