There are several good main 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 and not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is much easier 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 a limited group. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes managed their shares to another it’s easier when an additional is authorized.
Very almost always there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to the confident and also resounding yes, then it is time for one to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and a method to want to inflate it, your startup could be registered among the many legal formats belonging to the structure of a company on the market.
So ok, i’ll first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by one particular individual. No registration is actually required. This is the method to adopt if you wish to do it alone and the objective of establishing vehicle is to attain a short-term goal. But this puts you liable to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. You should a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust within partners. But similar using a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that your company can be a separate legal entity that effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), from 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 power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum upper limit of corporation. The number of directors must be 2.