There are a few good main reasons why it makes ample sense to register your network. The first basic reason is guard One Person Company Registration in India online‘s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes managed their shares to another it’s easier when group is registered.
Very almost always there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to that is a confident and a resounding yes, then it is time for in order to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to expand it, your startup can be registered among the many legal formats of the structure on the company available.
So allow me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by just one individual. No registration it takes. This is the method to if you must do it alone and the goal of establishing the organization is to realize a short-term goal. But this puts you liable to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe 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 demands a regarding trust between the partners. But similar using a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that your company is often a separate legal entity within turn effect protects the owner from being personally liable for any losses.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally liable to lose their personal power.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 using a maximum maximum of 45. The number of directors must be 2.