There are some good good reason that it makes ample sense to register your specialist. The first basic reason is to protect One Person Company Registration in India online‘s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even 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 enterprise is registered.
Very almost always there is a dilemma as to when business should be registered. The answer to which is, primarily, when the business idea is good enough to be converted into a profitable business or truly. And if the answer to the confident which has a resounding yes, then it’s the perfect time for someone to go ahead and register the investment. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of corporation and the way you want to inflate it, your startup could be registered as among the many legal formats belonging to the structure of a company available to you.
So ok, i’ll first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration is actually required. This is the method to adopt if you want to do it all by yourself and the purpose of establishing the company 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 a lot more than two individuals. For a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust between the partners. But similar the proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a Person Company in how the company is a separate legal entity which usually effect protects the owner from being personally to blame for any obligations.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 by using a maximum maximum of fifty five. The number of directors must be 2.