There are some good some reasons why it makes ample sense to register your specialist. The first basic reason is guard one’s own interests by no means risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and is also forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is accredited. 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, in case of a limited company, if wishes to transfer their shares to another it’s easier when the company is recorded.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to that is a confident too resounding yes, then it’s time for One Person Company Registration in India online to go ahead and register 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 enterprise enterprise and like you would want to grow it, your startup can be registered among the many legal formats of the structure in a company accessible to you.
So i want to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration it takes. This is the method in order to if you wish to do it for yourself and the goal of establishing the company is to realize a short-term goal. But this puts you at risk of losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust regarding the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in that this company is really a separate legal entity which in effect protects the owner from being personally to blame for any damages.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t any upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 along with a maximum upper limit of fifty five. The number of directors must be 2.