There are some good reasons why it makes ample sense to register your company. The first basic reason is to safeguard one’s own interests and not risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and is also forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if One Person Company Registration in India online wishes managed their shares to another it’s easier when company is registered.
Very there’s always a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to method has . confident and a resounding yes, then it’s the perfect 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 will be saddled with liabilities.
Depending upon the size and type of the actual and like you would want to grow it, your startup can be registered among the many legal formats of the structure associated with company available to you.
So ok, i’ll first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only individual. No registration is actually required. This is the method in order to if you wish to do it yourself and the reason for establishing the company is to achieve a short-term goal. But this puts you prone 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 case of 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 to a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in which the company can be a separate legal entity within turn effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 using a maximum upper limit of 45. The number of directors must be 2.