There are some good main reasons why it makes ample sense to register your specialist. The first basic reason is preserve one’s own interests and not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes to transfer their shares to another it’s easier when company is subscribed.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or not. And if the answer to that is a confident too resounding yes, then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it’s usually beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the actual and when there is want to flourish it, your startup can be registered as Online One Person Company Registration in India of the many legal formats for this structure on the company available.
So let me 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 only individual. No registration is actually required. This is the method in order to if you must do it all by yourself and the purpose of establishing firm is to achieve a short-term goal. But this puts you at risk of losing all your 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 event of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust within partners. But similar together with proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in how the company is a separate legal entity which in effect protects the owner from being personally responsible for any loss.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.