There are many good 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 and is not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and is also forced to close down. Secondly, it is much 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 or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes to transfer their shares to another it’s easier when an additional is recorded.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, in case business idea is good enough to be converted to a profitable business or never ever. And if the answer to method has . confident properly resounding yes, then then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of corporation and a method to want to flourish it, your startup could be registered as one of the many legal formats with the structure of a company available.
So allow me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by just one individual. No registration is actually required. This is the method to if you should do it all by yourself and the purpose of establishing business is to realize a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. For a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust between the partners. But similar using a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in how the company can be a separate legal entity which effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally liable to lose their personal holdings.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 by using a maximum upper limit of corporation. The number of directors must be 2.