There are some good main reasons why it makes ample sense to register your network. The first basic reason is preserve Online One Person Company Registration in India‘s own interests by no means risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and is also forced to seal 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 and even limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, 1 wishes managed their shares to another it’s easier when an additional is registered.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to that is a confident which has a resounding yes, then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to grow it, your startup could be registered among the many legal formats in the structure of the company open to you.
So allow me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by just one individual. No registration it will take. This is the method to if you should do it all by yourself and the purpose of establishing vehicle 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 a lot more than two individuals. You should a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust in between the partners. But similar using a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in which the company is really a separate legal entity which effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally prone to lose their personal wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the connected with 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 45. The number of directors must be 2.