There are several good some reasons why it makes ample sense to register your specialist. The first basic reason is guard One Person Company Registration in India online‘s own interests as an alternative to risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when group is recorded.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or not solely. And if the answer to and also confident too resounding yes, then it is time for in order to go ahead and register the new. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the organization and when there is want to inflate it, your startup could be registered among the many legal formats of the structure on the company accessible to you.
So ok, i’ll first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by 1 individual. No registration becomes necessary. This is the method to adopt if you must do it alone and the purpose of establishing business is to realize 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 higher than two individuals. In the a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a lot of trust within partners. But similar using a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a Person Company in which the company can be a separate legal entity which effect protects the owner from being personally responsible for any cutbacks.
d) Limited Liability Partnership (LLP), while 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 which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.