There are a few good the actual reason why it makes ample sense to register your tiny. The first basic reason is to guard one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes to transfer their shares to another it’s easier when enterprise is recorded.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident which has a resounding yes, then it’s time for someone to go ahead and register the new. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the organization and when there is want to grow it, your startup could be registered as Online One Person Company Registration in India of the many legal formats in the structure in a company available to you.
So ok, i’ll first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by just one individual. No registration is needed. This is the method in order to if you wish to do it on your own and the reason for establishing business is to achieve a short-term goal. But this puts you at risk 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. In the case of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust regarding the partners. But similar the proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in that the company can be a separate legal entity which in effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 along with a maximum maximum of 45. The number of directors must be 2.