There are a couple of good good reason that it makes ample sense to register your company. The first basic reason is to guard one’s own interests by no means risk personal assets to the point of facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes managed their shares to another it’s easier when group is subscribed.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, when your business idea is good enough to be converted into a profitable business or not solely. And if the answer to and also confident properly resounding yes, then it’s time for Online One Person Company Registration in India to go ahead and register the investment. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the business and the way you want to grow it, your startup could be registered as one of the many legal formats in the structure of the company open to you.
So i want to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration it will take. This is the method to adopt if you must do it all by yourself and the reason for establishing the organization is obtain a short-term goal. But this puts you prone to losing your entire 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, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust concerning the partners. But similar in order to some proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in which the company can be a separate legal entity that effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally prone to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the number of directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 having a maximum maximum of 50. The number of directors must be 2.