There are many good some reasons why it makes ample sense to register your specialist. The first basic reason is to protect one’s own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is also forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited group. (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 group is authorized.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, when the 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 the perfect time for in order to go ahead and Register One Person Company in India Online the investment. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of corporation and a method to want to be expanded it, your startup could be registered among the many legal formats belonging to the structure of the company on the market.
So allow me to 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 only individual. No registration is needed. This is the method to be able to if for you to do it on your own and the purpose of establishing firm is to attain a short-term goal. But this puts you liable to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the case of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust concerning the partners. But similar the proprietorship there is a 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 within turn effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally liable to lose their personal power.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 by using a maximum upper limit of corporation. The number of directors must be 2.