There are many good the actual reason why it makes ample sense to register your network. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests as an alternative to risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is recorded.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, in case business idea is good enough to be converted to a profitable business or not too. And if the answer to that is a confident too resounding yes, then then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial find a quote as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the organization and like you would want to expand it, your startup can be registered among the many legal formats of the structure associated with company on the market.
So i want to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by 1 individual. No registration becomes necessary. This is the method to if for you to do it for yourself and the reason for establishing vehicle is to achieve a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. You should a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust within partners. But similar together with proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in how the company is often a separate legal entity which effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 with a maximum maximum of 50. The number of directors must be 2.