There are some good good reason that it makes ample sense to register your network. The first basic reason is guard one’s own interests and is not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes to transfer their shares to another it’s easier when the company is subscribed.
Very there’s always 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 to a profitable business or not too. And if the answer to that is a confident and a resounding yes, then it’s the perfect time for someone to go ahead and Register One Person Company in India Online the investment. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of corporation and how i want to flourish it, your startup can be registered as one of the many legal formats in the structure associated with company available.
So i want to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by just one individual. No registration is actually required. This is the method in order to if you must do it for yourself and the purpose of establishing the company is to realize a short-term goal. But this puts you subject to losing your entire 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, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust within partners. But similar using a proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that this company is a separate legal entity which in effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 using a maximum upper limit of corporation. The number of directors must be 2.