There are some good good reason that it makes ample sense to register your network. The first basic reason is to protect One Person Company Registration in India online‘s own interests and is not risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes managed their shares to another it’s easier when the company is recorded.
Very there’s always a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or not. And if the answer to and also confident and a resounding yes, then it’s the perfect time for someone to go ahead and register the international. And as mentioned earlier on it’s usually beneficial find a quote as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the organization and a method to want to expand it, your startup could be registered as one of the many legal formats for this structure associated with company available to you.
So allow me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration is actually required. This is the method in order to if you want to do it for yourself and the purpose of establishing firm is to realize a short-term goal. But this puts you prone to losing every 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 associated with trust between the partners. But similar the proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that this company is a separate legal entity which in effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal power.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 along with a maximum upper limit of corporation. The number of directors must be 2.