There are several good the actual reason why it makes ample sense to register your network. The first basic reason is preserve one’s own interests and not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited group. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes to transfer their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when a lot more claims 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 too. And if the answer to method has . confident and a resounding yes, then it’s time for someone to go ahead and Register One Person Company in India Online the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of corporation and how i want to grow it, your startup can be registered as one of the many legal formats belonging to the structure in a company open to you.
So permit me to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by just one individual. No registration becomes necessary. This is the method to be able to if you must do it for yourself and the reason for establishing business is to realize a short-term goal. But this puts you subject to losing your own 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 aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust within partners. But similar together with proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in how the company is a separate legal entity which usually effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 with a maximum upper limit of 50. The number of directors must be 2.