There are many good the actual reason why it makes ample sense to register your specialist. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes to transfer their shares to another it’s easier when enterprise is registered.
Very often there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted to a profitable business or not. And if the answer to and also confident too resounding yes, then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of corporation and like you would want to flourish it, your startup can be registered among the many legal formats with the structure of the company open to you.
So allow me to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by just one individual. No registration it takes. This is the method to be able to if for you to do it all by yourself and the reason for establishing business is obtain a short-term goal. But this puts you at risk to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. For a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust between the partners. But similar together with proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a Person Company in that your company is really a separate legal entity which usually effect protects the owner from being personally responsible for any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally liable to lose their personal holdings.
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 quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum maximum of 150. The number of directors must be 2.