There are several good main reasons why it makes ample sense to register your network. The first basic reason is to protect one’s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and is forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if Online One Person Company Registration in India wishes managed their shares to another it’s easier when the company is subscribed.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to the confident properly resounding yes, then it’s time for one to go ahead and register the new. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to grow it, your startup could be registered as among the many legal formats of the structure in a company on the market.
So let me first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by only 1 individual. No registration is actually required. This is the method to be able to if you want to do it yourself and the purpose of establishing the company is to realize 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 a lot more than two individuals. In the a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust regarding the partners. But similar in order to some proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that the company is really a separate legal entity within turn effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the associated with directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 by using a maximum maximum of 150. The number of directors must be 2.