There are some good main reasons why it makes ample sense to register your network. The first basic reason is to safeguard Online One Person Company Registration in India‘s own interests by no means risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and and that is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes to transfer their shares to another it’s easier when an additional is recorded.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to and also confident which has a resounding yes, then it’s the perfect time for someone to go ahead and register the start-up. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the organization and like you would want to grow it, your startup can be registered as among the many legal formats of the structure in a company open to you.
So allow me to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by 1 individual. No registration is actually required. This is the method to if you want to do it all by yourself and the reason for establishing firm is gain a short-term goal. But this puts you liable to losing your own 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, as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust regarding the partners. But similar to a proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that your company can be a separate legal entity which usually effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally prone to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 using a maximum upper limit of 150. The number of directors must be 2.