There are several good some reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests and not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited reputable company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if One Person Company Registration in India online wishes to transfer their shares to another it’s easier when an additional is authorized.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or truly. And if the answer to that is a confident too resounding yes, then it’s the perfect time for someone to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of enterprise enterprise and a method to want to grow it, your startup can be registered as one of the many legal formats with the structure on the company available.
So let me first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by just one individual. No registration it takes. This is the method to adopt if for you to do it alone and the objective of establishing vehicle is to achieve a short-term goal. But this puts you prone to losing complete 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, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust in between the partners. But similar to a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that this company is a separate legal entity which effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners aren’t personally liable to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the number of directors must 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.