There are a couple of good some reasons why it makes ample sense to register your network. The first basic reason is guard one’s own interests but not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and and that is forced to seal 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 or a limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes to transfer their shares to another it’s easier when group is recorded.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or truly. And if the answer to the confident properly resounding yes, then it is time for in order 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 important work saddled with liabilities.
Depending upon the size and type of the business and how i want to inflate it, your startup can be registered as Online One Person Company Registration in India of the many legal formats belonging to the structure associated with company on the market.
So let me first educate you 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 becomes necessary. This is the method to adopt if you want to do it alone and the goal of establishing the organization is to attain a short-term goal. But this puts you at risk of losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. In the case of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust in between the partners. But similar together with proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in that the company is a separate legal entity which effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.