There are some good main reasons why it makes ample sense to register your tiny. The first basic reason is preserve one’s own interests and not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and and that is forced to close 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 potentially a limited firm. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes to transfer their shares to another it’s easier when an additional is subscribed.
Very often there is a dilemma as to when the corporate 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 solely. And if the answer to method has . confident and also resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of corporation and the way you want to be expanded it, your startup could be registered as One Person Company Registration in India online of the many legal formats of the structure of the company open to you.
So permit me to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration is needed. This is the method to if you should do it on your own and the objective of establishing business is to realize a short-term goal. But this puts you at risk to losing your own 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 being laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust in between the partners. But similar using a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in how the company is often a separate legal entity within turn 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 best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 along with a maximum maximum of 150. The number of directors must be 2.