There are many good main reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and which forced to shut down. Secondly, it is 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 or maybe limited enterprise. (These are terms which have been described later on). Another valid reason is, from 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 business should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or not too. And if the answer to method has . confident and also resounding yes, then it is time for one to go ahead and Register One Person Company in India Online the investment. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of corporation and the way you want to grow it, your startup could be registered as among the many legal formats for this structure in a company open to you.
So ok, i’ll first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by only individual. No registration it takes. This is the method to adopt if for you to do it all by yourself and the objective of establishing vehicle is obtain a short-term goal. But this puts you liable to losing every 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 within partners. But similar together with proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in how the company is a separate legal entity within turn effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t 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 quantity of directors must be at least 3 and
ii) Private Limited Company where minimal number of needed are 7 by using a maximum maximum of corporation. The number of directors must be 2.