There are some good some reasons why it makes ample sense to register your network. The first basic reason is to guard one’s own interests and not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is subscribed. 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, in the eventuality of a limited company, if one wishes to transfer their shares to another it’s easier when company is enrolled.
Very often there is a dilemma as to when business should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to that is a confident and a resounding yes, then it is time for One Person Company Registration in India online to go ahead and register the international. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the business and how i want to be expanded it, your startup can be registered as the many legal formats with the structure of the company on the market.
So i want to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by only individual. No registration is actually required. This is the method in order to if you must do it for yourself and the reason for establishing the organization is gain a short-term goal. But this puts you at risk to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the case of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust between the partners. But similar the proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that this company can be a separate legal entity which usually effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 having a maximum upper limit of corporation. The number of directors must be 2.