Choosing the best company structure for your firm is just as crucial as any other business decision. Your company will be able to run more efficiently and fulfill its goals if you have the correct corporate structure in place. Every business in India is required to register as part of the legal requirements, this can be easy with online ca services. Let's try to grasp the many forms of business structures in India before learning how to register a company.
What is company registration?
When you choose to start a company in India most people, including yourself, find it difficult to register your company since it is a popular misconception that online company registration in india takes a long time, is confusing, and includes a lot of paperwork.
People sometimes believe that getting a business registered in India requires a lot of visits to the registration office and consultant offices. That's where our innovative platform for online company registration in india comes in. Our mission and vision are to make online business registration in India simple and clear. With our online company registration portal, you will find that securing online company registration in india is simple.
Why should you register your company in India?
There are numerous advantages to forming a business. Your company's legitimacy will be enhanced if it is registered. It benefits your online company registration in india :
- Protects against personal liability as well as other risks and losses.
- Increases the number of customers.
- With ease, obtains bank credits and good investments from reputable investors.
- Protects your company's assets by providing liability protection.
- Increased capital contribution and stability.
- Enables the ability to expand and grow large.
Types of company structures in India
Let's have a look at the various sorts of company structures that are easy to access in India. Here's a summary of a few of them:
One Person Company (OPC)
An OPC is the easiest approach to start a business if there is only one promoter or owner. It was first launched under Companies Act, 2013. It allows a solo owner to continue working while remaining a part of the company.
Limited Liability Partnership (LLP)
An LLP is a separate legal entity in which partners' liabilities are restricted to their agreed-upon participation.
Private Limited Company
In the perspective of the law, a company is considered a separate legal entity from its founders. There are shareholders (stakeholders) and directors on the board (company officers). The company considers each individual to be an employee.
Public Limited Company
A Public Limited Company is an organization which can offer shares to the general public and arrange large amounts of money to start their operations. It has its own legal status, and its members' responsibility is restricted to the number of shares they own.
You can choose whatever online company registration in india best meets your needs and register your company accordingly. Sole proprietorship, Hindu Undivided Family, and Partnership businesses are examples of other company formats. Please keep in mind that these structures are not covered by company law. For company registration, you can take the assistance of an online chartered accountant.
Choose a company structure for online company registration in India
Let's take a closer look at some key issues that every entrepreneur should consider before deciding on a company structure
How many owners/partners will you have in your company?
A One Person Company is excellent if you are a single person who owns the full upfront outlay required for the firm. A Limited Liability Partnership (LLP) or Private Limited Company, on the other hand, would be the best choice if your online new company registration in india has two or more owners and is proactively pursuing outside investment.
Should your choice of company structure be based on your initial investment?
Yes, if you want to save money right away, a Sole Proprietorship, a HUF, or a Partnership is the way to proceed. You might choose a One Person Company, LLP, or Private Limited Company if you are confident that you will be able to recover the startup and compliance fees.
Reluctance to take on the complete business risk
The liability of business formations such as a sole proprietorship, a HUF, or a partnership firm is unlimited. This means that the entire loan amount will be recovered from the members or partners in a profit-sharing ratio in the event of a loan failure. Personal assets are in danger in these situations.
Companies and LLPs, on the other hand, have a limited liability clause. This means that each member's liability is limited to the amount of their contribution or the value of the shares they own.
Rates of Income Tax that Apply to Companies
A sole proprietorship and a HUF are subject to the usual slab rates of income tax. The business income is combined with the individual's other income in the event of a sole proprietorship.
Other entities, such as partnerships and companies are subject to a 30 percent tax rate.
Plans to raise funds from investors
As one must know, getting funding is tough when your business structure is unregistered. When it comes to investing, entities like LLP and Private Limited Company are trusted. Make sure you pick the suitable structure and get the support of a professional so you can register properly.
What Legalpillers can assist you in registering your business in India?
The procedure of forming a private limited company is entirely online, so you won't even have to leave your house to get started. Within 14 days*, Legalpillers completes the Company Registration online. We have the best online ca services and online chartered accountant in India.
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