There are a few good reasons why it makes ample sense to register your specialist. The first basic reason is to safeguard one’s own interests but not risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and and that is forced to close 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 even a limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if Online One Person Company Registration in India wishes managed their shares to another it’s easier when an additional is subscribed.
Very almost always there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, if your business idea is good enough to be converted to a profitable business or not. And if the answer to that is a confident which has a resounding yes, then it’s the perfect time for someone to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to flourish it, your startup can be registered as among the many legal formats in the structure of the company available.
So permit me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by one particular individual. No registration is actually required. This is the method in order to if you should do it all by yourself and the purpose of establishing business is gain a short-term goal. But this puts you subject to losing all your 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, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust in between the partners. But similar using a proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that this company can be a separate legal entity that effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum upper limit of fifty five. The number of directors must be 2.