There are a few good main reasons why it makes ample sense to register your little. The first basic reason is guard one's own interests as an alternative to risk personal assets to the aim of facing bankruptcy in case your business faces an emergency and also is forced to seal down. Secondly, it is easier 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 potentially 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 an additional is registered.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not. And if the answer to that is a confident which has a resounding yes, then it's the perfect time for Online One Person Company Registration in India to go ahead and register the investment. And as mentioned earlier on it will be beneficial find a quote as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of enterprise enterprise and how i want to grow it, your startup could be registered as among the many legal formats for this structure of the company on the market.
So ok, i'll first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by one particular individual. No registration is needed. This is the method to if you must do it yourself and the objective of establishing business is to realize a short-term goal. But this puts you liable 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. In the a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust between the partners. But similar in order to some proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a Person Company in that your company is really a separate legal entity which usually effect protects the owner from being personally to blame 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 liable to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.