There are many good good reason that it makes ample sense to register your tiny. The first basic reason is to guard one’s own interests as an alternative to risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited enterprise. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when group is authorized.
Very often there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is good enough to be converted to a profitable business or truly. And if the answer to and also confident which has a resounding yes, then then it’s time for Online One Person Company Registration in India to go ahead and register the new. And as mentioned earlier on it is always beneficial find a quote as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of the organization and how i want to be expanded it, your startup can be registered as the many legal formats of the structure of a company available.
So allow me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only individual. No registration is actually required. This is the method to if you want to do it for yourself and the objective of establishing firm is obtain a short-term goal. But this puts you prone to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the case of a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust concerning the partners. But similar to a proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in how the company is a separate legal entity within turn effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), from where 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 wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 with a maximum upper limit of 150. The number of directors must be 2.