There are many good good reason that it makes ample sense to register your specialist. The first basic reason is to protect one’s own interests but not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes to transfer their shares to another it’s easier when company is recorded.
Very often there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not too. And if the answer to and also confident and also resounding yes, then it’s the perfect time for One Person Company Registration in India online to go ahead and register the investment. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the actual and like you would want to expand it, your startup could be registered as among the many legal formats in the structure of the 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 managed or run by only individual. No registration is needed. This is the method to adopt if you wish to do it yourself and the objective of establishing firm is to attain a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. You should a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust concerning the partners. But similar to a proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that your company is a separate legal entity which in effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally liable to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 by using a maximum maximum of 50. The number of directors must be 2.