There are many good 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 assets to the point of facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional 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 the eventuality of a limited company, if wishes managed their shares to another it’s easier when enterprise is subscribed.
Very there’s always a dilemma as to when the corporate 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 too. And if the answer to and also confident which has a resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the actual and when there is want to flourish it, your startup could be registered as the many legal formats in the structure on the company accessible to you.
So i want to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only individual. No registration is needed. This is the method to if you must do it for yourself and the purpose of establishing business is obtain a short-term goal. But this puts you subject to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar using a proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that your company is a separate legal entity which usually effect protects the owner from being personally subject to any cutbacks.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 using a maximum maximum of fifty five. The number of directors must be 2.