There are several good good reason that it makes ample sense to register your little. The first basic reason is guard one’s own interests by no means risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if an additional is disclosed. 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, in case of a limited company, 1 wishes managed their shares to another it’s easier when an additional is subscribed.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to method has . confident properly resounding yes, then then it’s time for Online One Person Company Registration in India to go ahead and register the startup. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the actual and when there is want to expand it, your startup could be registered among the many legal formats with the structure of the company available.
So permit me to first fill you in with necessary information. The various company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only individual. No registration is actually required. This is the method in order to if for you to do it yourself and the objective of establishing firm is gain 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 more than two individuals. For a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust in between the partners. But similar the proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that the company is a separate legal entity which in effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum upper limit of 150. The number of directors must be 2.