There are a couple of good reasons why it makes ample sense to Register One Person Company in India Online your company. The first basic reason is to guard one’s own interests as an alternative to risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and is also forced to seal down. Secondly, it is 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 and even limited reputable company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes managed their shares to another it’s easier when the company is recorded.
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 not. And if the answer to and also confident and a 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 write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the organization and like you would want to flourish it, your startup could be registered as among the many legal formats of the structure of a company available to you.
So ok, i’ll first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by just one individual. No registration is needed. This is the method to if you should do it yourself and the goal of establishing vehicle is gain a short-term goal. But this puts you subject to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust regarding the partners. But similar the proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in which the company can be a separate legal entity within turn effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), while 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 wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.