There are a couple of good reasons why it makes ample sense to register your tiny. The first basic reason is to guard one’s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited firm. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if Online One Person Company Registration in India wishes managed their shares to another it’s easier when group is recorded.
Very there’s always a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, when the business idea is good enough to be converted into a profitable business or not. And if the answer to that is a confident and a resounding yes, then then it’s time for one to go ahead and register the startup. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and the way you want to grow it, your startup could be registered as among the many legal formats in the structure associated with company available.
So let me first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only individual. No registration it takes. This is the method in order to if for you to do it yourself and the objective of establishing firm is to realize a short-term goal. But this puts you at risk to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. For a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust concerning the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that your company is often a separate legal entity which in effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally liable to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 using a maximum upper limit of 150. The number of directors must be 2.