There are several good reasons why it makes ample sense to register your network. The first basic reason is preserve one’s own interests and not risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization 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, just in case a limited company, if wishes to transfer their shares to another it’s easier when company is recorded.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, in case business idea is good enough to be converted into a profitable business or not solely. And if the answer to the confident which has a resounding yes, then it’s time for in order to go ahead and register the international. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the business and the way you want to inflate it, your startup can be registered among the many legal formats in the structure in a company available to you.
So ok, i’ll first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by Online One Person Company Registration in India particular individual. No registration it will take. This is the method to adopt if for you to do it alone and the goal of establishing the company is obtain a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust regarding the partners. But similar the proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in how the company is really a separate legal entity which effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 using a maximum maximum of fifty five. The number of directors must be 2.